Updated on
Summary The Asian rally was helped by positive signs for the US economy.
Asian stocks mostly rose Friday, shrugging off concerns about the eurozones debt crisis as a batch of rosy US economic data buoyed investor sentiment with the Dow hitting a near four-year high.Sydney was up 0.31 percent, Tokyo surged 1.81 percent while Seoul touched a six-month high, rising 1.39 percent.Hong Kong was up 0.74 percent while Shanghai shares lost early gains, edging down 0.26 percent.The US continues to be one of the brighter spots in the global economy, Barclays Capital said in a note, adding that while risks abound, Greece is less likely to deliver a scare to markets, which already seem to be pricing quite a negative scenario.Investors were encouraged by news the European Central Bank plans to swap its Greek debt holdings for new bonds once debt-restructuring negotiations are complete, moving Athens a step closer to securing a second bailout package critical to avoiding a default.The news supplied some relief over concern about Europes fiscal woes after the 17-nation currency bloc told Greece it must accept tough European Union surveillance to unlock a stalled bailout next week and avoid a messy default.Eurozone leaders for several weeks have been negotiating Greeces desperately-needed rescue package of 130 billion euros in fresh loans and a writedown on privately-held government bonds worth 100 billion euros to avoid defaulting on debt owed on March 20.Greek lawmakers approved a package of severe austerity measures late Sunday, but Eurogroup chair Jean-Claude Juncker has said that he has not received the political assurances from Greece necessary to green light the rescue fund.The Asian rally was helped by positive signs for the US economy, with the weekly report of new claims for unemployment benefits falling to their lowest level since March 2008 and data on January housing construction confirming a pickup in that depressed sector.The Dow Jones Industrial Average rose 0.96 percent to 12,903.71, its highest finish since May 2008, the broad-based S&P 500 added 1.10 percent and the Nasdaq Composite jumped 1.51 percent.General Motors shares rose over 9.0 percent despite fourth-quarter earnings missing expectations, with analysts saying they foresee a solid year in 2012.European markets, however, tumbled on concerns over Spains troubled banking sector and data showing the economy shrank by 0.3 percent in the last quarter of 2011.Spains economy, Europes fourth largest, grew by a meagre 0.7 percent last year and the fourth-quarter slump, in a country where unemployment is running at nearly 23.0 percent, reflected a continued slowdown in domestic demand which could not be offset by exports, the INE statistics office said.Seoul surged on the upbeat US data, with Samsung Electronics shares rising again Friday after hitting a record high a day earlier.The rise was driven by the South Korean electronics giant saying it is considering spinning off its loss-making liquid crystal display (LCD) business.South Koreas Knowledge Economy Minister Hong Suk-woo also said Friday that he expects a small trade surplus in February despite difficult economic conditions, Dow Jones Newswires reported.On currency markets, the euro was $1.3131 and 103.89 yen, against $1.3135 and 103.60 yen in New York late Thursday.The dollar bought 79.11 yen, from 78.94 yen.New Yorks main oil contract, West Texas Intermediate light sweet crude for delivery in March, rose 12 cents to $102.43 a barrel, while Brent North Sea crude for April delivery gained 24 cents at $120.35.Gold was at $1,731.50 an ounce at 0250 GMT, against $1,728.80 on Thursday.
