Asian shares rise on US earnings, Nikkei up 1.2%
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Asian shares rose on Thursday as strong corporate profits from US bellwethers allayed fears of a slowdown in earnings while the euro steadied after being hit by reported comments from German Chancellor Angela Merkel that rekindled fears about the euro zone debt crisis.
Japan's Nikkei was up 1.2 per cent although market players warned that appreciation in the yen could limit gains as shares of exporters such as car makers and electronics manufacturers come under pressure.
Seoul shares rose in early trade, rebounding from sharp declines in the previous session to track an overnight Wall Street rally. Battered cyclicals recovered, led by crude oil refiners as SK Innovation climbed 3.5 per cent, while S-Oil gained 2.5 per cent. The Korea Composite Stock Price Index ( KOSPI) was up 1.45 per cent at 1,820.91 points at 0001 GMT.
Joining regional bourses, Taiwan stocks rose 0.86 percent in gains after positive US company earnings, with chip makers higher and TSMC gaining 2.67 percent ahead of quarterly results due later in the day.
TSMC's gains came after its client, Qualcomm Inc, predicted a stronger December after cutting revenue and earnings forecasts for the current quarter on weaker-than-expected demand for semiconductors.
The main TAIEX index rose 60.28 points to 7,109.33, after closing down 1.09 per cent in the previous session. Electronics shares were up 1.34 per cent, with HTC advancing 3.07 per cent. Banking shares rose 0.97 per cent.
On Wall Street, the S&P 500 hit its highest level since early May helped by quarterly numbers from bellwethers such as Intel Corp and Honeywell and housing starts data that came in better than expected.
But continued strength in "safe haven" assets such U.S. treasuries underscored persistent concerns about the speed of economic growth, keeping bond yields near historic lows.
US Federal Reserve Chairman Ben Bernanke repeated in congressional testimony on Wednesday the central bank's pledge to act if the economy needed it as he underscored his concerns, specifically in the job market.
Bernanke downplayed risks of a double-dip recession. 10-year Treasury yields were littled changed at 1.48 per cent close to the record low of 1.442 per cent hit last month. The dollar bought 78.77 yen, moving back toward a one-month low of 78.68 yen hit on Monday.
The euro was last at $1.2276 up from its overnight low of $1.2216, which came after comments from Merkel raised fears a solution to Europe's debt crisis was not yet in sight.
"We have not yet shaped the European project in a way that we can be sure that everything will turn out well, we still have work to do," Merkel said in an interview posted on her Christian Democratic Union party's website, according to a media report.
Oil prices remained firm after hitting a seven-week peak on Wednesday as violence in Syria and tensions with Iran reinforced geopolitical fears. Brent crude futures were up 0.3 per cent to $105.42 a barrel while U.S. crude was 0.1 per cent higher at $89.97 a barrel.
Copyright @Thomson Reuters 2012