World stock markets advanced in thin trade Monday as shares in commodities producers and Japanese financials gained ground.
More Related
Asian Stocks Break Losing Streak
China’s Stock Market Mania
World Markets Fight Back After Brutal Year
In Tokyo, the Nikkei 225 stock average edged higher by 7.65 points, or about 0.1%, to 8,747.17, and Hong Kong's Hang Seng Index added 1% to 14,328.48.
As markets opened in Europe, Britain's FTSE 100 gained 2.2%, Germany's DAX was up 1.7% and France's CAC 40 climbed 1.3%. U.S. futures suggested a higher open on Wall Street. Dow futures rose 23 points, or 0.3%, to 8,495 and S&P 500 futures gained 2.8 points, or 0.3%, to 871.70.
With many investors away for the holiday and their books already closed for the year, trade in most markets was quiet and marked by low volumes. The recent rash of government stimulus measures helped underpin sentiment despite worries that the first half of next year would see the global economy and company profits erode further.
"There's this expectation and hope that governments could put a floor in for the economy and therefore lead to a better second half in 2009," said Song Seng Wun, economist at CIMB-GK in Singapore.
Benchmarks in Singapore, Australia and India climbed more than 1%, while those in Shanghai and South Korea traded flat. Markets in Indonesia, Malaysia and the Philippines were closed.
Among the session's best performers were energy companies after oil prices hovered near $40 a barrel as concerns about supply disruptions in the Middle East flared along with fighting between Israel and Gaza.
Australia's Woodside Petroleum Ltd gained 5.7%, top Japanese refiner Nippon Oil Corp. jumped 6.5%, and Chinese upstream producer CNOOC rose 3.9% in Hong Kong trade.
Japanese financials were higher amid reports the country's No. 2 non-life insurer, Mitsui Sumitomo Insurance Group Holdings Inc, was in merger talks with two smaller rivals to create the country's largest non-life insurer. Mitsui soared 8.3%.
The merger news boosted confidence that the private sector is seeking its own solutions at a time of slumping demand and economic turmoil, analysts said.
"The market is reacting very positively to this effort within the insurance sector to make some big changes on its own," said Kenichi Hirano, equity general manager at Tachibana Securities in Tokyo.
Japanese chipmaker Elpida Memory Inc. also benefited from merger speculation, rising 13.2% after earlier saying it was in talks with Taiwanese chipmakers in a bid to strengthen operations in an increasingly competitive market.
The dollar weakened to 90.37 yen, down from 90.75. The euro traded higher at $1.4255 from $1.4031. The pound slid further against the euro to 1.02984.
