Friday, July 22, 2011

Asia Ends Up on US Debt Talks, Tech Results

Asia Ends Up on US Debt Talks, Tech Results

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Asian shares rose on Wednesday as indications of progress on a U.S. budget-reduction deal boosted investor confidence while encouraging quarterly numbers from Apple and International Business Machines helped Asia's beaten-down tech sector gain for a second day.

The FTSE CNBC Asia 100 Index IBM 92P1077 Battery, which measures markets across Asia, jumped 1.3 percent.

Tokyo stocks marked their biggest daily rise in three weeks to close above 10,000, boosted by a rally in tech shares after strong earnings from Apple IBM 92P1102 Battery, with more gains in sight as Japan heads into its earnings season.

Among companies benefiting from the Apple euphoria, Toshiba, a maker of NAND flash memories, rose 2.7 percent and Foster Electric, which makes headphones for smartphones, jumped to a one-week high in heavy volume, gaining 1.7 percent.

Factory automation stocks outperformed after industrial robot maker Yaskawa Electric's solid earnings for the April-June quarter lifted sentiment. Yaskawa added 0.3 percent, Fanuc jumped 3.9 percent and THK surged 2.6 percent.

The benchmark Nikkei average IBM 08K8196 Battery [.N225 10010.39 4.49 (+0.04%) ] closed up 1.2 percent at 10,005.90, jumping the most since June 29, while the broader Topix gained 0.8 percent to 860.66.

Seoul shares snapped a two-session losing streak on eased U.S. debt jitters, led by tech shares after Apple and IBM [IBM 183.65 -1.56 (-0.84%) ] announced forecast-beating quarterly results.

The Korea Composite Stock Price IndexDELL 08K8194 Battery closed up 1.16 percent at 2,154.95 points.

Tech shares rallied after Apple's staggering earnings triggered expectations of higher demand for components and offered a glimmer of hope for the sector. Flat-panel producer LG Display jumped 4.8 percent and battery IBM 92P1087 Battery maker Samsung SDI rose 7.1 percent, while shares in chipmaker Samsung Electronics gained 3.5 percent.

SK Communications jumped as much as 7 percent on expectations of a merger with a spinoff of its parent firm SK Telecom before closing 1.2 percent lower.

Australia Shares Post Biggest 1-Day Gain in 8 Months

Australian shares jumped 1.8 percent, the biggest one-day percentage rally since IBM 92P1089 Battery early December, as banks and miners led a broad rebound, encouraged by strong U.S. corporate results and easing concerns over U.S. debt obligations.

National Australia Bank bounced 2.6 percent while BHP Billiton boosted the market with a 1.9 percent rise after a faster-than-expected recovery in metallurgical coal production.

The beaten down discretionary sector jumped 2.2 percent, even after top retailer Woolworths said it expected a tough year ahead for retailing. Woolworths finished up 0.7 percent while department store Myer recovered 3 percent.

News Corp rebounded 5.1 percent after chief Rupert Murdoch made a "humble" apology for crimes that have rocked his media empire but refused to resign, saying the fault lay with staff who IBM 92P1101 Battery "betrayed" him.

The benchmark S&P/ASX 200 index IBM 08K8192 Battery rose 81.6 points to 4,549.7, its highest close since July 11 but well off highs above 4,900 seen in April.

New Zealand's benchmark NZX 50 index rose 0.5 percent to 3,408.4.

China's main share index ended 0.1 percent lower, dampened by falls in resource shares, on concerns over a potential fallout in local government debt and the uncertain global economic

outlook.

The Shanghai Composite [.SSEC 2765.89 -28.31 (-1.01%)] ended at 2,794.2 points, breaking through the key psychological level of 2,800 points. The index fell 0.7 percent on Tuesday.

Hong Kong stocks rose for a third-straight session, boosted by China Mobile IBM 08K8193 Battery, though the market underperformed the rest of the region on weakness in financials and energy-related counters.

The Hang Seng Index [.HSI 21987.29 -16.40 (-0.07%)] closed up 0.5 percent at 22,003.7 points.



Zijin Mining Group [2899.HK 4.31 0.04 (+0.93%) ], a mainland gold miner with a market cap of $17.7 billion, recorded its biggest one-day plunge in a year after it emerged that one of its shareholders was planning a share placement and after gold prices retreated from a peak. It closed down almost 6 percent.

Finally in Southeast Asia, Singapore's STI IBM 08K8193 Battery and Malaysia's KLCI [.KLSE 1565.81 3.22 (+0.21%)] both gained ground, ending up 1 and 0.5 percent respectively.

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