European Markets Gain on Hopes of Chinese Economy
By Prasanth Aby Thomas | December 3, 2012 7:19 PM EST
European markets gained in the early minutes of trading, as the single-currency hit a six-week high against the Dollar after improved manufacturing data from China added to hopes of economic recovery in the world's second largest economy.
Europe's FTSEurofirst 300 gained 0.1 percent to 1,120.38 points while Britain's FTSE 100 gained 0.1 percent. Italy's FTSE MIB was up0.4 percent while France's CAC-40 and Germany's DAX were up 0.3 and 0.4 percent. Spain's IBEX gained 0.3 percent.
Asian indices ended mixed earlier, after official and private sector reports from China indicated the country's manufacturing picked up in November.
Japan's Nikkei average ended 0.13 percent higher to 9,458.18 while South Korea's KOSPI was up 0.37 percent to 11940.02. China's Shanghai Composite index fell 1.03 percent to 1959.77. Hong Kong's Hang Seng index dropped 1.25 percent to 21754.87.
Official data from China's National Bureau of Statistics showed the country's manufacturing sector expanded to a seven-month high in November, with the Purchasing Managers Index (PMI) picking up to 50.6. A PMI reading from HSBC also showed improvement, gaining to 50.5 from 49.5 in October.
The data, along with a host of other recent positive indicators, added to hopes the world's second largest economy would recover from its economic slump. China's growth slowed to 7.4 percent in the third quarter but is widely expected to pick up to official target levels in the final quarter of the fiscal year.
However, the improved figures failed to cheer Chinese markets as traders appeared to be more concerned about longer-term prospects of the economy. Analysts from Barclays suggested lacklustre trading in Chinese bourses indicated concerns over the performance of the economy in the next year, reported the Wall Street Journal.
Japanese traders were upbeat over Yen's extended weakness on hopes of monetary easing measures post elections on 16 December. The index crossed the critical psychological mark of 9,500 briefly, after which the momentum eased on concerns of the market overheating.
Manufacturing and exports data from South Korea also showed improvement. PMI increased to 48.2 in November from 47.4 in the previous month while shipments expanded 3.9 percent year-on-year.
Major Movers in Asia
Construction-related stocks gained in Tokyo. Shares of Shimizu Corp gained 4.03 percent while those of Chiyoda and Taisei Corp were up 4.81 and 4.91 percent. Technology firms were up on the Yen's weak run against the Dollar. Camera-maker Canon gained 2.71 percent, while Ricoh rose 1.70 percent.
Electronic major Sharp remained little changed, following weekend reports the firm plans to sell some of its television manufacturing plants to Taiwan-based Hon Hai Precision Company and that it is closing a solar-cell partnership with Tokyo Electron.
South Korean tech and automobiles ended higher. Samsung Electronics gained 1.71 percent. Hyundai and Kia Motors were up 1.33 and 1.13 percent.
Beverages firms fell in China. Anhui Golden Seed Winery fell 10.02 percent. Shares of Sichuan Tuopai Shede Wine and Shanxi Xinghuacun Fen Wine Factory were down 10.01 and 10 percent.
To contact the editor, e-mail:
Most Popular Slideshows
- NFL MNF: Pittsburgh Steelers 30, Houston Texans 23 [PHOTOS]
- 2014 MLB World Series Game 1: San Francisco Giants 7, Kansas City Royals 1 [PHOTOS]
- 2014 MLB World Series - Game 2: Kansas City Royals 7, San Francisco Giants 2 [PHOTOS]
- NFL Thursday Recap - Denver Broncos 35, San Diego Chargers 21: Peyton Manning Has 3 TDs In Easy Win [PHOTOS]
Join the Conversation
- Xiaomi Redmi 1S vs. Sharp Aquos Crystal – Specifications, Features And Price Showdown
- ASUS Releases A Teaser Indicating The Arrival of New Zenfone and ZenWatch On October 28
- Boy Stoned To Death For Alleged Rape, Victim Receives Dowry From Militants
- Three Dual SIM Samsung Galaxy Note 4 Duos Variants Comes To China
- Russia is Creating Underwater Combat Robots to Protect its Arctic Territories
- ‘Lone Wolf’ Attack on Canada Parliament Hill Could be ISIS-Related
- Update HTC One M7 with LG G2 with Android 4.4.2 as Sprint OTA: Fixes and Installation