Asian stocks rose, sending the MSCI Asia Pacific Index to a one-week high, as the euro strengthened against the yen after Ireland applied for a bailout to help fund itself and save its banks.
Nissan, a Japanese carmaker which gets about 15 per cent of its sales in Europe gained 0.4 per cent. Sony, the Japanese electronics maker that gets about 22 per cent of sales from Europe, climbed 1.5 per cent. BHP Billiton, the world's biggest mining company and Australia's biggest oil producer, rose 0.9 per cent after crude oil futures advanced today.
“Exporters will likely advance as the yen is in a weakening trend, and corporate earnings are strong in the US,” said Hiroichi Nishi, an equities manager in Tokyo at Nikko Cordial Securities. Gains “for Japanese stocks should continue as there's expectation for excess liquidity”.
The MSCI Asia Pacific Index rose 0.5 per cent to 132.41, headed for its highest close since Nov. 11. Concern over how China will tackle the fastest inflation in two years triggered a global stock rout that wiped more than $US1.7 trillion off global equities in the past two weeks.
Japan's Nikkei 225 Stock Average gained 0.9 per cent. Australia's S&P/ASX 200 Index rose 0.6 per cent. New Zealand's NZX 50 Index increased 0.5 per cent.
Futures on the Standard & Poor's 500 Index climbed 0.5 per cent today. In New York, the index advanced 0.3 per cent on Nov. 19 as higher-than-estimated profit at Dell, the world's third-largest supplier of personal computers, and a dividend increase at Nike, the biggest maker of athletic shoes, overshadowed concern China's steps to slow inflation will stifle global economic growth.
China reserve ratio
China ordered banks to set aside larger reserves for the fifth time this year, draining cash from the financial system in the world's fastest-growing major economy. The ratio will increase 50 basis points starting Nov. 29, the central bank said on its website on Sept. 19.
Irish Prime Minister Brian Cowen said on Nov. 21 in Dublin that he expects talks on the details of financial assistance for Ireland to be completed in the “next few weeks.” Finance Minister Brian Lenihan said the loan will be less than 100 billion euros ($US137 billion). He declined to give further details at a press conference in Dublin.
The yen depreciated to 114.77 against the euro, compared with 113.65 at the close of stock trading in Tokyo on Nov. 19. Against the dollar, Japan's currency weakened to 83.57 from 83.35. A weaker yen boosts the value of overseas income at Japanese companies when converted into their home currency.