Asian stocks rebounded on Wednesday as United States consumer confidence rose to the highest level in five months in November and China’s manufacturing grew boosting optimism. Also, the euro gained for the first time in four days after the European Central Bank signaled that policy makers may take steps to stop the debt crisis from escalating.
At 3.45 p.m. (I.S.T) Japan’s Nikkei gained 0.5%, while Australia’s ASX ended flat. Hong Kong’s Hang Seng jumped 1.1% and China’s Shanghai Composite rose 0.1%. India’s Sensex soared 1.7%.
According to China’s logistics federation, the Purchasing Managers’ Index rose to 55.2 from 54.7 in October. Also a PMI released by HSBC Holdings advanced, adding to signs that the government may take further steps to curtail the pressures of price escalation.
In other news, India's merchandise exports rose 21.3% to $18 billion in October from a year earlier, while imports grew 6.8% to $27.7 billion.
Stocks in Australia were pressured after the nation’s third-quarter gross domestic product came in lower-than-expected. The economy expanded 0.2% from the previous quarter. Also, investors remain concerned over the financial health of the other smaller European countries after Ireland received a bailout package last week.
In commodities markets, crude oil price rose $1.16 to trade at $85.27 a barrel.
Stocks on The Move
Exporters like Toyota Motor and Sony that derive most of its revenue from the United States and Europe rose on a weaker yen and the increase in consumer confidence lifted optimism.
Shares of automakers Toyota, Honda and Nissan jumped 2.8%, 2.3% and 1.9% respectively, while Sony added 1.5%.
Japan’s Nippon Electric Glass and Asahi Glass underperformed the key benchmark index after Goldman Sachs reduced its ratings on both the stocks, citing oversupply of LCD glass will continue at least in 2011. Shares of Nippon Electric Glass slumped 2.6% and Asahi Glass sank 3%.
In Australia, Woodside Petroleum and Santos lost 1.8% and 0.4% respectively, while major banks bounced back with shares of Westpac Banking and Commonwealth Bank of Australia ending up 0.4% and 0.5% respectively.
In Hong Kong, Bank of China ended 1.2% higher, Bank of Communications and China Merchants Bank gained 1.1% and 2% respectively.
Steel manufacturers in India boosted the index higher but telecommunications companies offset the positive trend following the 2G scam.
Shares of Bharti Airtel and Idea Cellular shed 2.5% and 0.7% respectively, but index heavyweight Reliance Communication jumped 3.9%. Shares of Bhushan Steel and JSW soared 9.4% and 6.7%, while Punj Lloyd climbed more than 10%.
