Markets in Asia, Europe Higher on Earnings

123jump.com Staff
02 Feb, 2010
New York City

Markets in Asia closed higher tracking gains in the U.S. European markets advanced at mid-day. December industrial producer price index increased 0.1% in November. Australia left its key lending rate unchanged at 3.75%.

[R]9:20 AM New York – Markets in Asia closed higher tracking gains in the U.S. European markets advanced at mid-day. December industrial producer price index increased 0.1% in November. Australia left its key lending rate unchanged at 3.75%.[/R]

Markets in Asia closed higher and in Europe edged up. Asian markets advanced on the positive manufacturing report in the U.S.

Stocks in Australia rallied after the Reserve Bank of Australia left its key lending rate unchanged at 3.75%. Investors had factored an increase of 25 basis points to 4%. The Australian dollar declined 1.2% against the dollar and the yen.

Commodities prices gained in London and in New York trading. Copper, gold and crude oil futures increased between 0.5% and 1%.

In Japan stocks surged after Nomura returned to profit in the third quarter as banks issue more shares in underwritten offering. Mitsubishi Electric Corp reported its first quarterly profit in five quarters.

Financial Services Agency in Japan is conducting preliminary investigation in the deal between Jupiter Telecommunication and Liberty Global Inc.

December industrial producer price index increased from November 0.1% in the euro area (EA16) and unchanged in the EU27. The producer price index dropped 5.1% in the euro area and dropped 4.3% in the EU27 from a year ago month.

In European trading BP Plc declined after it reported earnings that were lower than expected by some analysts. Rio Tinto Group traded higher after Citigroup Inc recommended the stock.

Earnings Review

BP Plc, an oil company said fourth quarter revenues rose 20.5% to $73.6 billion from $61.1 billion a year ago. Net profit for the quarter was $4.3 billion or 22.64 cents per diluted share compared to net loss of $3.3 billion or 17.62 cents per share a year ago.

Nomura Holdings, Inc, the financial services company reported third quarter revenues rose 11,825% to ¥322 billion from ¥2.7 billion a year ago. Net profit in the quarter was ¥10.2 billion or ¥2.89 per diluted share compared to net loss of ¥342.9 billion or ¥180.97 per share a year ago.

Nomura Holdings, Inc, in the last one year traded as high as ¥934.00 in June 2009 and as low as ¥403.00 in February 2009. Based on the yesterday’s closing price of ¥705.00 the company has market cap of ¥2.48 trillion.

Softbank Corp, the provider of digital information services reported third quarter revenues rose 6.5% to ¥696 billion from ¥653.3 billion a year ago. Net profit in the quarter rose 41% to ¥24.1 billion compared to net profit of ¥17.1 billion a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 166.07 or 1.63% to 10,371.09, and Hang Seng index in Hong Kong increased 28.43 or 0.14% to 20,272.18, and CSI 300 index in China lower 6.52 or 0.21% to 3,146.19. ASX 200 index in Australia increased 81.20 or 1.79% to 4,605.30. The FTSE Bursa KL Composite index in Malaysia was higher 4.60 or 0.37% to 1,263.76.

The Kospi Index in South Korea decreased 10.63 or 0.66% to close at 1,595.81. SET index in Thailand closed lower 3.54 or 0.51% to 694.07. JSE Index in Indonesia decreased 7.30 or 0.28% to 2,580.25. The Sensex index in India decreased 192.59 or 1.18% to 16,163.44.

Europe Markets Review

In London FTSE 100 Index traded higher 9.12 or 0.17% to 5,256.53, in Paris CAC 40 Index increased 21.28 or 0.57% to 3,783.29 and in Frankfurt DAX index traded higher 29.81 or 0.53% to 5,684.29. In Zurich trading SMI increased 58.82 or 0.91% to 6,555.15.