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Asian shares higher on dip buying

Asian shares higher on dip buying
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First Published: Tue, Aug 23 2011. 08 42 AM IST
Updated: Tue, Aug 23 2011. 08 42 AM IST
Hong Kong: Asian stocks rose on Tuesday morning thanks to bargain hunting and a positive lead from Wall Street, while Japanese stocks were supported by a stable yen-dollar.
Expectations of the imminent defeat of Moammar Gadhafi by rebels in oil-rich Libya also sent crude prices lower.
However, while regional equities were in the green investors remain nervous about the state of the global economy, which pushed gold prices to a record near $1,900 an ounce.
Tokyo rose 0.10% by the break, Sydney added 1.09%, Shanghai gained 0.36% and Singapore was 0.20% higher. Hong Kong opened flat.
Markets in Europe and Wall Street ended in the green. The Dow Jones Industrial Average gained 0.34%, the S&P 500 edged up 0.03%, and the tech-heavy Nasdaq Composite rose 0.15%.
London’s FTSE 100 climbed 1.08%; in Paris, the CAC 40 rose 1.14%; the DAX ended down 0.11%.
The gains followed three successive losses in Asia, which have been caused by worries that growth in the United States’ economy is faltering and the eurozone debt crisis will spread.
Market watchers are looking ahead to later in the week, when US Federal Reserve chief Ben Bernanke is due to deliver a key speech, which many looking for clues to how he plans to boost the US’ flat-lining economy.
Expectations are rising that he will announce additional measures to stimulate the economy although it is not clear if these would include a third full-fledged bond-buying programme, known as quantitative easing.
In Tokyo exporters were higher as the yen retreated after hitting a record post-war high 75.95 against the dollar last week.
In early Tokyo trade the dollar fetched ¥76.76, from ¥76.78 in New York late Monday. The euro bought $1.4368, slightly up from $1.4356 in New York.
The single European currency was worth 110.32, from 110.25 on Monday.
News from Tripoli that rebels were close to bringing down the 42-year reign of Moammar Gadhafi raised the likelihood of a better oil supply, which continued to weigh on the price of the Brent contract.
At 06:15 am, Brent North Sea crude for October delivery was down two cents at $108.34 a barrel after having fallen by as much as 18 cents in earlier trades. Brent is the main oil sold in Europe, which is the main destination of Libyan crude.
New York’s main contract, West Texas Intermediate light sweet crude for October delivery was 27 cents higher at $84.69 a barrel.
Safe haven gold opened in Hong Kong at a record high $1,898.00-$1,899.00 an ounce, up from its Asian close on Monday of $1,885.00-$1,886.00.
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First Published: Tue, Aug 23 2011. 08 42 AM IST
More Topics: Asia | Wall Street | Oil | Dow Jones | Stocks |