Saturday, March 10, 2012

Asia stocks rise on Greece, tame Chinese inflation

(AP) ? Asian stock markets climbed Friday as China's inflation eased and Greece moved closer to inking a deal with private creditors to restructure its debt and avoid a massive default.

Benchmark oil stayed above $106 per barrel while the dollar was higher against the yen and steady against the euro.

Markets were reassured by news that China's inflation fell sharply in February, giving Beijing more leeway to stimulate the world's No. 2 economy. Consumer price inflation fell to 3.2 percent from January's 4.5 percent.

That helped to offset any caution from a U.S. Labor Department report on Thursday that showed the number of people seeking unemployment benefits rose last week to 362,000, up some 8,000 from the week before. A closely watched monthly U.S. employment report is due later Friday.

"Inflation is benign in China, a little bit below market expectations," said Francis Lun, managing director of Lyncean Holdings in Hong Kong. "I think the outlook is more positive now, even though the U.S. employment data doesn't look that good."

Expectations that Greece's debt reduction deal with private creditors will pass a major hurdle also reassured markets, said Lun.

Japan's Nikkei 225 index jumped 2.3 percent to 9.990.06 after briefly hitting 9,991.41, its highest intraday level since July 27.

Hong Kong's Hang Seng added 1.1 percent to 21,121.52. South Korea's Kospi rose 0.9 percent to 2,018.38 and Australia's S&P/ASX 200 climbed 1 percent to 4,212.80.

China's Shanghai Composite Index was up 0.4 percent to 2,429.95. Benchmarks in Singapore, Taiwan and Indonesia also rose.

On the European debt crisis front, a Greek government official told The Associated Press that investors holding 75 percent of the debt have so far pledged to exchange their existing Greek bonds for ones with a lower face value and interest rate.

Greece needs 90 percent of investors to participate to qualify for an emergency bailout of euro130 billion, or about $173 billion, and avoid a default later this month. Athens will release final results Friday.

Greece has passed legislation known as collective action clauses, which could allow it to force holdouts to participate if a majority of bondholders agree to sign up voluntarily.

Investor attention is also turning to a report Friday on how many jobs the U.S. economy added in February and the unemployment rate. Economists expect 200,000 jobs were added. If the unemployment rate falls from 8.3 percent, it will be the sixth straight decline.

Among individual stocks, Japan's Tokio Marine Holdings jumped 4.4 percent after a judge in the U.S. state of Delaware refused to halt a shareholder vote on its acquisition of Delphi Financial Group Inc.

Tokio Marine announced in December that it had agreed to buy Delphi to strengthen its position in the U.S. property and casualty insurance market and enter the life insurance market, but some Delphi stockholders had challenged the deal.

Hong Kong subway operator MTR Corp. rose 1.8 percent after it reported net profit rose 22 percent in 2011 on improved results from its property development business and overseas rail operations.

Australian flagship carrier Qantas Airways Ltd. fell 2.3 percent after its plans for a new premium airline in Asia were put in jeopardy as talks with Malaysia Airlines ended without a deal.

Japan's powerhouse export sector was helped as the yen slipped against the dollar and the euro, which helps to lower prices of Japanese goods sold overseas and raises the value of repatriated profits. Mazda Motor Corp. jumped 4.7 percent. Suzuki Motor Corp. added 2.9 percent. Sony Corp. climbed 4.7 percent.

On Wall Street Thursday, the Dow Jones industrial average closed up 0.6 percent at 12,907.94. The S&P 500 gained 1 percent to close at 1,365.91. The Nasdaq composite index added 1.2 percent to close at 2,970.42.

Benchmark oil for April delivery was up 34 cents to $106.92 in electronic trading on the New York Mercantile Exchange. The contract rose 42 cents to settle at $106.58 per barrel in New York on Thursday.

The dollar rose to 81.79 yen from 81.60 yen late Thursday in New York. In currencies, the euro was nearly unchanged at $1.3269.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/f70471f764144b2fab526d39972d37b3/Article_2012-03-09-World-Markets/id-8343d07f1f754c31830d11896f09c660

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