Asian stocks rise amid talk of US auto bankruptcies

Asian stocks rise amid talk of US auto bankruptcies
Comment E-mail Print Share
First Published: Wed, Apr 01 2009. 10 31 PM IST
Updated: Wed, Apr 01 2009. 10 31 PM IST
Tokyo: Asian stocks rose for the first time in three days on speculation Japanese and South Korean auto makers will gain from the possible bankruptcies of General Motors Corp. (GM) and Chrysler Llc.
Honda Motor Co. Ltd, which generates 51% of its sales in North America, climbed 6.7% in Tokyo and Hyundai Motor Co. added 4.7% in Seoul.
US President Barack Obama believes a quick, negotiated bankruptcy is the most likely way for GM to restructure, and is prepared to let Chrysler go bankrupt, people familiar with the matter said. “Less competition should help auto makers expand market share, not just in the US but all around the world,” said Soichiro Monji, chief strategist at Tokyo-based Daiwa SB Investments Ltd, which manages $53 billion (Rs2.7 trillion). “I expect the rally will continue for another month or two. Many economic figures are showing signs of improvement.” The MSCI Asia Pacific Index gained 1.6% to 82.24, following a two-day, 5.35% slump
Comment E-mail Print Share
First Published: Wed, Apr 01 2009. 10 31 PM IST
More Topics: Markets | Global | Asia | Stocks | Economy |