Asian stocks rose, led by technology and financial shares, as a pickup in US mortgage applications eased concern subprime losses will derail economic growth. |
The Morgan Stanley Capital International Asia-Pacific Index rose for a second day, adding 0.9 per cent to 153.75 at 6:19 pm in Tokyo. Nine out of 10 industry groups included in the benchmark climbed. |
Japan's Nikkei 225 Stock Average added 0.8 per cent to 17,170.60, with a weak yen benefiting companies such as Sony Corp that rely on overseas sales. |
Samsung Electronics, Asia's biggest maker of computer chips and mobile phones, led exporters higher on speculation US demand will withstand a housing slump. Sumitomo Mitsui Financial Group gained as investors judged recent losses excessive. Softbank, Japan's third-largest mobile-phone company, advanced after first-quarter net income surged almost 18-fold. |
"It's becoming clearer the direct impact of the subprime loan problem on the US economy and earnings is limited,'' said Junichi Misawa, who oversees $655 million at STB Asset Management in Tokyo. |
Europe |
European stocks and US index futures dropped after BNP Paribas, France's biggest bank, halted withdrawals from investment funds because it can't "fairly'' value their holdings. |
BNP fell the most in four months. Commerzbank, which reported better-than-expected earnings today, and Deutsche Bank also declined. Citigroup, the largest US bank, and JPMorgan Chase, the third-biggest, fell in Europe. |
Europe's Dow Jones Stoxx 600 Index retreated 1.5 per cent to 375.19 in London, while Standard & Poor's 500 Index futures expiring in September lost 16.7 to 1,487.2. |
Stocks dropped around the world last month on concern the debacle in the US mortgage market will hurt economic growth, slow takeovers and reduce the value of investments. |
US |
US stock-index futures declined after two European banks said they had losses in US credit markets, reviving concern that the rout related to subprime mortgages may broaden. |
Citigroup, the largest US bank, JPMorgan Chase, the third-biggest, and Merrill Lynch, the No 3 securities firm, fell in Europe. The Standard & Poor's 500 Investment Banking and Brokerage Index has lost 12 per cent in the past month.S&P 500 futures expiring in September decreased 11 to 1,492.9. in London. Dow Jones Industrial Average futures retreated 75 to 13,630. Nasdaq-100 Index futures lost 6 to 1,993.25.w up in the credit markets,'' said Juergen Lukasser, who helps manage $20 billion as head of equities at Constantia Privatbank in Vienna. "Nobody's able to quantify the worst case. These fears overshadow the excellent earnings we've seen and they'll not go away quickly.'' |
S&P 500 futures expiring in September decreased 11 to 1,492.9 in London. Dow Jones Industrial Average futures retreated 75 to 13,630. Nasdaq-100 Index futures lost 6 to 1,993.25. |