Asian markets rebound on easing Europe fears
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Asian markets bounced back on Wednesday following some much-needed positive news out of Europe and an IMF report forecasting global growth would be stronger than first thought.
Technology and financial shares were boosted by strong earnings in the United States, while the euro and dollar gained against the yen as traders felt confident to buy riskier assets.
Tokyo was 1.67 per cent higher by the break, Hong Kong added 0.93 per cent, Sydney gained 1.28 per cent and Shanghai was up 0.54 percent, while Seoul rose 0.95 per cent.
The recent concerns that troubled Spain could be the next in line for a bailout were soothed when it enjoyed an above-target debt auction on Tuesday.
Although the 12- and 18-month bonds came at a high price, the success lifted market spirits, which have been low amid talk Madrid will not be able to cut its huge public deficit.
Eyes will now be on a crucial sale auction of benchmark 10-year debt Thursday.
Adding to the positive sentiment was news that German investor confidence rose, unexpectedly, for the fifth month in a row.
Across the Atlantic, Wall Street giant Goldman Sachs said it more than doubled its first-quarter net profit, while chipmaker Intel said earnings came in better than expected, as did Coca-Cola.
The firms' Asian counterparts took heart from the results as their reporting season approaches.
US and European stock markets took the news well, posting strong gains.
On Wall Street the Dow closed up 1.50 per cent, the S&P 500 advanced 1.55 per cent and the Nasdaq rose 1.82 percent.
London's FTSE 100 climbed 1.78 per cent, the Frankfurt DAX 30 rallied 2.65 per cent and in Paris the CAC 40 jumped 2.72 per cent, while Milan soared 3.68 per cent and Madrid gained 2.28 per cent.
Investors were also helped by the International Monetary Fund, which said in its semi-annual global forecast that the world economy would grow 3.5 per cent this year and 4.1 per cent in 2013, up from its earlier projection of 3.3 per cent and 4.0 per cent.
The dollar firmed to 81.36 yen in early Asian trade from 80.87 yen in New York late Tuesday. The euro bought $1.3110 and 106.70 yen against $1.3127 and 106.16 yen.
On oil markets, New York's main contract, West Texas Intermediate crude for delivery in May, was up 11 cents to $104.31 per barrel while Brent North Sea crude for June shed 18 cents to $118.60.
Gold was at $1,650.00 an ounce at 0300 GMT, compared with $1,655.50 late on Tuesday.
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