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Author
Joe Mcdonald
Date
July 2, 2014

Asian stocks mostly higher on US, China growth

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BEIJING (AP) — Asian stocks were mostly higher Wednesday on improved U.S. and Chinese economic activity.

The regional heavyweight, Tokyo’s Nikkei 225, gained 0.5 percent to 15,406.03 points. Hong Kong’s Hang Seng added 1 percent to 23,409.33 and Taipei, Seoul and Sydney also gained. China’s benchmark Shanghai Composite Index was down 0.2 percent at 2,046.25.

Traders were encouraged by surveys showing China’s manufacturing activity improved in June for the first time in six months. That came on top of the government’s decision to expand credit by allowing banks to lend more relative to the size of their deposits.

Both developments “bode well for growth,” said Credit Agricole CIB economist Dariusz Kowalczyk in a report.

In the United States, the Institute for Supply Management said manufacturing activity grew in June, though at a slower pace than in May.

“Markets saw this as a positive,” said CMC Markets in a report.

Taiwan’s Taiex added 1.1 percent to 9,545.96 and Seoul’s Kospi rose 0.7 percent to 2,013.29. Sydney’s S&P/ASX 200 jumped 1.2 percent to 5,439.60. Singapore, Malaysia and New Zealand also rose.

On Tuesday, Britain’s FTSE 100 and France’s CAC 40 both rose 0.9 percent. Germany’s DAX advanced 0.7 percent.

Shares in BNP Paribas, France’s biggest bank, rose 3.6 percent after it said would be able to pay a nearly $9 billion U.S. fine for violating a ban on handling transactions for clients in Sudan, Cuba and Iran. The United States is trying to block them from participation in the global financial system.

On Wall Street, the Dow Jones industrial average rose 0.8 percent to close Tuesday at 16,956.07. The broader Standard & Poor’s 500 gained 0.7 percent to 1,973.32.

In energy markets, benchmark U.S. crude for August delivery added 7 cents to $105.41 in electronic trading on the New York Mercantile Exchange. The contract shed 3 cents on Tuesday to close at $105.34.

In currencies, the dollar rose to 101.62 yen from 101.50 yen late Tuesday. The euro slipped to $1.3680 from $1.3682.

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