Asian stock indices were trading mostly higher on hope that policymakers around the world will take new measures to support growth. Technology and export firms rose after US stocks rebound, while energy shares get a boost from rise in crude prices.
The MSCI Asia Pacific Index advanced 1% as of 11:01 a.m. in Tokyo, led by exporters. The index is poised for its biggest two-day gain in five weeks. Almost five stocks rose for each one that dropped in the MSCI Asia Pacific Index.
An index of industrial companies led gains among 10 groups. The MSCI Asia-Pacific index fell 2.5% on May 18, the most since Nov. 10.
Japan’s Nikkei 225 Stock Average rose ~1% while Australia’s S&P/ASX 200 Index was up ~0.8%. South Korea’s Kospi Index gained 1%. Hong Kong’s Hang Seng Index advanced ~1%.
China’s Shanghai Composite Index rose ~0.5%. The Straits Times index in Singapore was up 1% while the Taiex in Taiwan advanced 0.6%.
European leaders will do everything necessary to keep Greece in the 17-nation euro and focus on steps to aid economic expansion, German Finance Minister Wolfgang Schaeuble said yesterday. Eurozone officials are due to meet in Brussels tomorrow to discuss the debt crisis.
China plans to speed up approval of infrastructure projects and allocate construction funding faster to improve growth, the China Securities Journal reported.
Prime Minister Wen Jiabao said yesterday that the nation should adopt a proactive fiscal policy and a prudent monetary policy to shore up the world’s second-largest economy.
A leading index for China rose 0.8% in April, the same pace as the previous month, the New York-based Conference Board said today.
Metals advanced on optimism that demand in China will increase.
Tin and lead gained 1% in London. Crude for June delivery, which expires today, advanced as much as 0.5% in electronic trading in New York.
The yen was flat at 79.33 per dollar amid speculation that policy makers will boost stimulus measures to support growth. The euro fell against all of its major peers before the release of consumer sentiment data.
Demand for the yen was limited as the Bank of Japan starts a two-day meeting today amid speculation that it will boost stimulus measures.
The New Zealand dollar remained higher.