Stock Markets in Asian-Pacific region rallied on Thursday, following the gain in Wall Street, as the U.S. Federal Reserve saw earlier signs of stabilization in the world’s largest economy. The automotive and technology sector lead the advance in Nikkei after the U.S. 1Q GDP report showed a jump in consumer spending.
[B][U]Asia[/U][/B][B][U] Session Key Developments[/U][/B]
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· [B]Japan industrial outs increase 1.6% amid expectations for a 0.8% rise[/B]
· [B]U.S. personal consumption jumps 2.2% in first-quarter[/B][B][/B]
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[B]Hang Seng Marks Biggest Monthly Gain in Two-Years, Nikkei Advances Following the Rise in Industrial Outputs[/B]
Stock Markets in Asian-Pacific region rallied on Thursday, following the gain in Wall Street, as the U.S. Federal Reserve saw earlier signs of stabilization in the world’s largest economy. The automotive and technology sector lead the advance in Nikkei after the U.S. 1Q GDP report showed a jump in consumer spending, while a government report showed Japanese outputs increased 1.6% in March. Despite the improved outlook emerging from the recent data, the swine flu pandemic paired with mounting concerns for the U.S. auto industry may weigh on market sentiment as trade conditions falter.
[B]NKY 225 8828.26[/B]
Japanese stocks surged higher, with the Nikkei 225 Stock Average advancing 334.49 points, or 3.94% to close at 8828.26 in Tokyo, and marked its biggest gain in four weeks. Canon Inc., which gets almost a third of its sales from the U.S., climbed 6.1% as U.S. consumer spending increased, while shares of Honda Motor Co. leapt 9.4% after the firm reported an improved outlook for future earnings. Meanwhile, Fanuc Ltd., the nation’s top maker of industrial robots, surged 7% after the company’s 1Q earnings topped analyst expectations.
[B]HSI 15520.99[/B]
The Hong Kong stock market rallied on Thursday, and marked the biggest one-month advance since 2007. The Hang Seng Index advanced 564.04 points, or 3.77% to 15520.99, after climbing as much as 4.2% during the session. Foxconn International Holding Ltd., the world’s biggest contract maker of mobile phones, rallied 19%, and Tsingtao Brewery Co., jumped 12% after saying first-quarter profit increased 54%, while China Unicom Ltd., the country’s second-biggest mobile-phone carrier, climbed 3.1% after 1Q profit beats analysts’ estimates.
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[B]ASX 200 3780.50[/B]
Australia’s ASX 200 Index rose 85.20 points, or 2.31% to end the month at 3780.50, which is the highest close since November 12, and marked a 5.5% advance during the month of April. The rally was powered by a 2.68% gain in basic materials, led by BHP Billiton and Rio Tinto, which surged 3.1% and 5.0%, respectively, as commodity prices pushed higher, while banking shares climbed 2.6%, which was spurred by the gain on Wall Street.
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[B][U]Notable Asian Session Event Risk / Economic Releases
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