Japan's Nikkei average hit a 15-month closing high on Tuesday after solid U.S. manufacturing data boosted investor confidence in the economy, lifting shares of exporters such as Canon Inc. But the market generally ran out of steam hurt by a slightly stronger yen and as Sumitomo Mitsui Financial Group trimmed earlier gains on news it plans $8.7 bln share sale. The benchmark Nikkei 225 inched up 0.3 percent to 10,681.83, its highest close since Oct. 3 2008, after rising as high as 10,791.04 at one stage. The broader Topix rose 0.4 percent to 919.57.
Stock markets in China and Hong Kong ended higher on Tuesday, fuelled by a rally in energy and metals plays amid firmer commodities prices, while banks rebounded on optimism that global recovery would drive profit. Upbeat manufacturing data from the United States and China helped push the main index to its highest close in a month, while the volume of trade was at the highest since Nov. 27, 2009. The benchmark Hang Seng Index ended up 2.09 percent, its biggest percentage gain in five weeks, or 456.3 points at 22,279.58. The China Enterprises Index of top locally listed mainland Chinese stocks was up 3.07 percent at 13,142.03.
European shares dipped in early trade on Tuesday, retreating from a 15-month high as investors booked a small portion of recent lofty gains, with pharma stocks dropping on mounting worries over sales of H1N1 flu vaccines. "It's a little pause, but overall this is the start of a brand new year, people really want to believe in a good 2010 for stocks, and this sentiment is fuelled by strong macro data and the return of the M&A fever," said David Thebault, head of quantitative sales trading, at Global Equities, in Paris.
T. W. Merryman
Managing Director
Interconti, Limited
(Market Research Analysts)
Chicago, IL 60604
e: intercon@intercontilimited.com
w: www.intercontilimited.com
