Asian Markets Higher; Copper Surges

123jump.com Staff
01 Mar, 2010
New York City

Asian markets closed higher after resource stocks gained in China, Japan and Australia. Copper surged in Asian trading after Chile was struck with 8.8 magnitude earthquake. Insurance stocks gained after Prudential Plc agreed to pay $35.5 billion for Asian insurance division of AIG.

[R]8:00 PM Hong Kong – Asian markets closed higher after resource stocks gained in China, Japan and Australia. Copper surged in Asian trading after Chile was struck with 8.8 magnitude earthquake. Insurance stocks gained after Prudential Plc agreed to pay $35.5 billion for Asian insurance division of AIG.[/R]

Markets across Asia closed higher after resource stocks rallied. Copper led the gainers in the metals trading after Chile was struck with massive earthquake prompting fears that copper supplies will be disrupted.

Jiangxi Copper Co. and Tongling Nonferrous Metals Group Co. closed up daily trading limit of 10% in Shanghai trading. Resource stocks BHP Billiton and Rio Tinto in Sydney also traded higher.

Sumitomo Metals Mining Co. increased 1.1% in Tokyo trading and Nippon Mining added 2.5%.

Prudential Plc agreed to acquire Asian life insurance unit of American International Group Inc for $35.5 billion. Prudential will raise $20 million in a rights offering and $5 billion in bond offering.

Prudential will pay $25 billion in cash and $10.5 billion in stock for AIA Group Ltd that was founded in Shanghai in 1919 and has 20 million customers

Insurance companies in China and Japan traded higher.

The Australian dollar traded at a 25-year high against the pound ahead of the Reserve Bank of Australia is expected to make a decision on interest rate.

Australia’s fourth quarter current account deficit increased to $15.7 billion, larger than expected by economists.

Earnings Review

Shanda Interactive Entertainment Limited, an interactive entertainment media company reported 2009 revenues rose 47% to Rmb 5.24 billion from Rmb 3.57 billion a year ago. Net profit in the year rose 29% to Rmb 1.59 billion or Rmb 22.90 per ADS compared to net profit of Rmb 1.23 billion or Rmb 16.98 per ADS a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 46.03 or 0.45% to 10,172.06, and Hang Seng index in Hong Kong increased 448.23 or 2.17% to 21,056.96, and CSI 300 index in China higher 42.76 or 1.30% to 3,324.42. ASX 200 index in Australia increased 48.80 or 1.05% to 4,686.50. The FTSE Bursa KL Composite index in Malaysia was higher 12.62 or 0.99% to 1,283.40.

JSE Index in Indonesia increased 5.64 or 0.22% to 2,554.67. Markets in South Korea, Thailand & India were closed today.