RTTNews - Most of the markets open for trading ended in positive territory on optimism about prospects of global recovery in the later part of the year. Positive news that lender CIT Group successfully managed to avert bankruptcy also lifted the market sentiment. Commodity prices led the gains on expectation of rising demand in the market. The markets in Japan and Indonesia were closed for a holiday.
In the U.S., stocks ended mixed amid choppy trading as traders digested better-than-expected quarterly results with cautious optimism. Cost-cutting measures are helping the markets to meet or beat profit goals, while most companies are reporting revenues below expectations- a clear sign of weak demand in the economy.
The Dow finished up by 32.12 points or 0.4% at 8,744, and the Nasdaq rose by 1.58 points or 0.1% to 1,887. However, the S&P 500 slipped by 0.36 points to 940.38.
The All Ordinaries Index opened unchanged from its previous close at 3,993 and continued to move higher, led by miners and energy stocks. Recovery hopes and higher commodity prices helped sustain the momentum throughout the session and the market finally ended up 51.30 points, or 1.28% at 4,044. The benchmark S&P/ASX 200 Index followed a similar trend and ended at 4,050, representing a gain of 1.20% or 49.50 points,
On the economic front, a report from the Australian Bureau of Statistics revealed that producer prices dropped further in the second quarter, to record the steepest fall since the series first began in the fourth quarter of 1998. Producer prices fell 0.8% sequentially in the second quarter, faster than a 0.4% drop in the first quarter, and above economists' expectations of a 0.2% decline.
Light sweet crude oil for August delivery ended the Asian trading session at $64.14, up $0.58 from its previous close in New York at $63.56 on Friday.
Metal and mining stocks rallied sharply. BHP Billiton gained 2.27%, Rio Tinto advanced 1.75%, Fortescue Metals soared 9.18%, Gindalbie Metals added 1.30%, Minara Resources rose 6.10% and Oz Minerals soared 6.81%. Uranium producer Energy Resources of Australia gained 5.75% after the company said that it expects its profit for the first six months might triple from the same period last year.
Energy stocks also ended in positive territory. Woodside Petroleum added 0.94%, Santos gained 2.55% and Oil Search rpse 3.51%.
Gold stocks advanced on higher bullion prices in the market. Lihir Gold added 1.05%, Newcrest Mining gained 0.94% and Sino Gold Mining edged up 0.19%.
Retail stocks also ended in positive territory. David Jones gained 3.23%, Harvey Norman added 0.87%, Wesfarmers rose 1.91% and Woolworths advanced 1.47%.
Banking stocks ended on a mixed note. ANZ Bank added 0.66%, Commonwealth Bank Australia rose 1.04% and National Australia Bank edged up 0.38%. However, Westpac Banking bucked the trend and lost 0.10%.
In Hong Kong, the Hang Seng Index opened sharply higher at 19,005 compared to its previous close at 18,806 following optimism that the worst for the global economy might have been over and expects to recover in the later part of the year. Positive sentiment across the region amid news that CIT avoided bankruptcy also lift market sentiment. The market ended with a sharp gain of 696.71 points, or 3.70%, at 19,502.
All the 42 components, except three, ended in positive territory with gains.
Telecom stocks led the gains in the telecom sector. Tencent Holdings surged up 8.18%, China Unicom gained 2.84% and China mobile rose 3.26%.
Cosco Pacific surged up 10.78%. Ping An Insurance soared 10.27%.
Among financials, HSBC Holdings gained 3.15%, Hang Seng Bank added 1.92%, Bank of East Asia advanced 3.22%, Bank of Communications rose 4.30% and Bank of China increased 2.45%.
In property space, SHK Property surged up 5.08%, New World Development rose 6.52%, Sino Land gained 5.26% and Swire Pacific surged up 6.60%. All other property stocks also ended in positive territory.
In South Korea, the benchmark KOSPI Index ended in positive territory on hopes that the worst for the global economy is over. Expectations from corporate earnings also lifted market sentiment. The market opened higher at 1,448 compared to previous close at 1,440, and continued to move northward on recovery hopes. The market ended the session with a gain of 38.41 points, or 2.67% at 1,479.
Large-cap tech shares led the gain. Chip giant Samsung advanced 2.99% consumer electronics giant LG Electronics surged 4.31%
Among technology stocks, Memory-chip maker Hynix Semiconductor, which is also scheduled to release earnings this week, jumped 7.05%.
Financial firms also rose on better-than-expected earnings predictions. KB Financial Group, the holding company for top lender Kookmin Bank, soared 6.16% and Hana Financial Groupclimbed 6.99%.
Automakers ended higher on expectation of improvement in demand. Hyundai Motor rose 3.72% and Ssangyong Motor gained 1.43%.
The Indian market ended sharply higher on the back of strong global cues, positive earnings surprises and strong institutional buying. Sharp gains in the IT sector led by TCS following its better-than-expected results and speculation that the government's stance in a gas-sale dispute between Ambani brothers would help Reliance Industries, also helped the rally.
The BSE Sensex ended at 15,191, up 446 points or 3.03% from its previous close, and the S&P CNX Nifty rose 127 points or 2.91% to 4,502.
Among the other major markets in the region, China's Shanghai Composite Index gained 77.18 points, or 2.42% to close at 3267, Singapore's Strait Times Index advanced 24.78 points, or 1.02%, to close at 2,456 and Taiwan's Weighted Index rose 87.87 points or 1.28% to close at 6,939.
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