Hong Kong — Asian markets were boosted Wednesday
as US politicians look to be closing in on a deal to avert the fiscal
cliff, while the euro added to gains in New York after Greece's debt
rating was upgraded.
Tokyo shares surged 2.39
percent, a third straight rally, to break 10,000 for the first time in
eight months ahead of an expected Bank of Japan announcement on monetary
policy.
The Nikkei in Japan ended 237.39
points, to 10,160.40 on the Tokyo Stock Exchange, while Sydney climbed
0.49 percent, or 22.6 points, to a 17-month high of 4,617.8.
In afternoon trade, Shanghai rose 0.44 percent and Hong Kong jumped 0.77 percent.
Seoul was closed for presidential elections.
The main focus continues to be on the United States, where lawmakers
are holding talks to avert the huge tax hikes and deep spending cuts
slated to come into effect in two weeks.
Most
economists expect the package to tip the US economy into recession if a
new deal -- with less swingeing measures -- is not agreed in time.
However, there is growing confidence that progress is being made in the
negotiations, with top Republican lawmaker John Boehner saying he is
willing to see taxes rise for people on more than $1 million – rather
than his previous position of no rises at all.
President Barack Obama has also said he is willing to see rises for
people on more than $400,000, rather than the $250,000 he previously
wanted.
Adding to the upbeat sentiment was news
out of Europe that Standard & Poor's raised Greece's sovereign debt
rating by six notches, citing support for Athens from its eurozone
partners.
The upgrade from selective default to
B-/B "reflects our view of the strong determination of European Economic
and Monetary Union (eurozone) member states to preserve Greek
membership in the eurozone," the agency said.
Greek Finance Minister Yannis Stournaras said the decision "was a very important one that created a climate of optimism."
The move came after Greece completed a debt buyback program and
eurozone finance ministers approved the latest batch of bailout cash.
Tuesday's decision provided a lift for the euro, which added to recent gains against the dollar and yen.
In afternoon forex trade, the yen was under pressure in Asia as markets
bet on more easing measures after a Bank of Japan (BoJ) policy meeting,
while the single currency won support from a batch of positive eurozone
news.
The euro firmed to ¥111.65 from ¥111.47
in New York late Tuesday, while it was at $1.3243, from $1.3225. On
Tuesday in Asia the euro was at ¥110.49 and $1.3165.
And the dollar was quoted at ¥84.29 , compared with ¥84.28 in New York.
The Japanese currency remains under pressure as traders await the end
of a two-day BoJ meeting on Thursday, with most expecting fresh monetary
easing to kickstart the economy.
Incoming prime
minister Shinzo Abe Tuesday asked central bank chief Masaaki Shirakawa
to adopt a two percent inflation target, just days after his landslide
election win on a promise of pressing for more aggressive monetary
easing.
The weak yen again fueled a rally on the Nikkei, which hit its highest level since early April.
There appeared to be little reaction to data showing Japan's November
trade deficit expanded 37.9 percent on-year to $11.3 billion, a record
for the month, with exports to China slumping owing to a bitter
territorial spat with Beijing.
Oil prices rose,
with New York's main contract, light sweet crude for delivery in January
rising 38 cents to $88.31 a barrel and Brent North Sea crude for
February delivery advancing six cents to $108.90.
Gold was at $1,675.44 at 0645 GMT compared with $1,698.90 late Tuesday.
In other markets:
Taipei rose 33.73 points, or 0.44 percent at 7,677.47. Taiwan
Semiconductor Manufacturing Co. was 0.62 percent higher at Tw$97.3 while
leading smartphone maker HTC fell 1.44 percent at Tw$274.5.
Wellington added 1.10 percent, or 43.75 points, to 4,023.00. Telecom
rose 1.6 percent to NZ$2.29, Mainfreight added 2.1 percent to NZ$11.30,
Fletcher Building was up 2.10 percent to NZ$8.27 and Air New Zealand
gained 0.78 percent to NZ$1.29. — Agence France-Presse
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