Asian markets advance as company earnings eyed
HONG KONG — World stock markets gained more ground Thursday as investors awaited decisions on interest rates from Europe’s two leading central banks and eyed company earnings for clues about the health of the global economy.
The dollar, meanwhile, continued tanking against major currencies, helping push commodities prices, which are priced in greenbacks, even higher. Crude oil climbed above $70 a barrel and gold hit a new high above $1,058 an ounce.
The advance in Asian and European equities came after a mixed finish on Wall Street, where traders were reluctant to place major bets ahead of quarterly reports from U.S. companies.
But investors were heartened by news after the closing bell that aluminum maker Alcoa Inc., the first of the 30 companies that make up the Dow Jones average to announce its earnings, said it was profitable again after three losing quarters.
“Alcoa’s results were a surprise and this is definitely a positive for the market,” said Peter Lai, investment manager at DBS Vickers in Hong Kong. “We may have a little more upside for now.”
In Europe, investors were expecting the European Central Bank, which controls monetary policy for the 16 countries that use the euro, and Britain’s Bank of England to keep benchmark interest rates unchanged at historic lows. Unlike Australia, whose central bank announced a surprise rate hike this week, the eurozone and British economies remain in recession.
European markets rose ahead of the decisions, with Britain’s FTSE 100 up 1.1 percent, Germany’s DAX gaining 1.4 percent and France’s CAC-40 climbing 1.6 percent.
Earlier in Asia, Japan’s Nikkei 225 stock average rose 32.87 points, or 0.3 percent, to 9,832.47 and Hong Kong’s Hang Seng added 251.31 points, or 1.2 percent, to 21,492.90.
Elsewhere, South Korea’s Kospi climbed 1.1 percent and India’s Sensex was 0.7 percent higher. Australia’s index jumped 1.6 percent.
Markets found additional girding after Australia’s unemployment rate unexpectedly dropped to 5.7 percent last month, adding to optimism about an economic recovery and causing the country’s currency to surge to a 14-month high against the dollar, above 90 cents.
Still, some investors were treading cautiously as they awaited more earnings reports in the U.S. as well as the reopening of mainland China’s markets Friday, which have been closed the last week for a national holiday, analysts said
On Wall Street overnight, the Dow fell 5.67, or 0.1 percent, to 9,725.58.
The S&P 500 index rose 2.86, or 0.3 percent, to 1,057.58, while the Nasdaq composite index rose 6.76, or 0.3 percent, to 2,110.33.
U.S. futures pointed to a higher open Thursday. Dow futures were up 84, or 0.9 percent, at 9,757.
Oil prices rose amid a weakening U.S. dollar and mixed crude inventory data. Benchmark crude for November delivery was up 59 cents at $70.16; the contract lost $1.31 overnight.
The dollar slumped, trading at 88.24 yen from 88.60 yen. The euro gained to $1.4766 from $1.4687.
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