Asian stock markets join US, European rally
BEIJING — Asian stock markets rose Wednesday, joining a U.S. and European rally on positive economic data from the United States and Germany and shaking off jitters over the death of North Korean leader Kim Jong Il.
Tokyo's main index gained 1.4 percent and Seoul rose 2.7 percent. Shanghai, Taipei and Singapore also rose.
The positive signs from key Western export markets helped shore up Asian sentiment that was jolted by Kim's death and fears of a possible power struggle in a country pursuing nuclear weapons. Seoul's main index plunged 5 percent on Monday before recovering.
"U.S. markets soared overnight after yet another round of positive economic data," said Stan Shamu, market strategist for Australia's IG Markets, in a report. "Sentiment was also lifted by improving German confidence and a positive Spanish bond auction."
The U.S. Commerce Department on Tuesday reported unexpectedly strong November home starts at their highest level since April 2010 and up 9.3 percent from October.
In Germany, a research group reported business confidence rose unexpectedly this month while consumers were resilient. Investors also took heart after Spain's government borrowing costs fell in a weekly debt auction.
Tokyo's Nikkei 225 rose to 8,454.18 points, Seoul's Kospi increased to 1,841.32 and China's benchmark Shanghai Composite Index gained 0.5 percent to 2,227.7. Hong Kong's Hang Seng added 1.8 percent to 18,401.9.
Singapore's benchmark added 1.5 percent to 2,654.3 while Sydney's S&P/ASX 200 gained 2.1 percent to 4,138.
Analysts expect Kim to be succeeded by his third son, Kim Jong Un. North Korean state media have stepped up lavish praise of the younger Kim, indicating an effort to strengthen a cult of personality around him similar to that of his father.
On Tuesday, major European exchanges all gained strongly after the reports on business and consumer confidence by research institute GfK.
European Union leaders are trying to raise 200 billion euros ($261 billion) to provide the International Monetary Fund with resources to help indebted nations avoid default.
Makets shrugged off news after trading closed Monday that EU finance ministers raised only three-quarters of the target agreed to at a summit last week. At the summit, the 17 countries that use the euro agreed to set up a new treaty to create tighter fiscal rules for the currency union, which has been rocked by a debt crisis for the past two years.
On Wall Street, the Dow Jones Industrial Averages gained 2.3 percent on Tuesday while the S&P 500 jumped 2.4 percent.
In currencies, the euro strengthened to $1.312 from $1.3071 late Tuesday. The dollar rose to 77.8 yen from 77.7.
Benchmark oil for January delivery edged up 71 cents to $97.95 per barrel in electronic trading on the New York Mercantile Exchange.