Asia Stocks Perk up as Merger Frenzy Spurs Wall St
February 25, 2014 3:02 PM EST
Asian share markets regained some altitude on Tuesday courtesy of a tailwind from Wall Street which sped to historic highs amid more mergers buzz, while gold extended its recent rally.
A man reading a newspaper walks past a stock quotation board outside a brokerage in Tokyo.
The upbeat mood among investors in the United States and Europe also helped calm nerves about China after talk of credit tightening knocked property shares there on Monday.
MSCI's broadest index of Asia-Pacific shares outside Japan added 0.5 percent, while stocks in Seoul gained 0.7 percent.
Japan's Nikkei bolted ahead by 1.4 percent to breach the 15,000 barrier, which in turn gave the U.S. dollar a lift on the yen. In Australia, the market briefly touched its highest since mid-2008 on a run of solid earnings reports.
Asia was following in the footsteps of Wall Street, where the benchmark S&P 500 hit an intra-day record as the Nasdaq punched to peaks last seen almost 14 years ago.
The Dow closed up 0.64 percent, while the S&P 500 gained 0.62 percent and the Nasdaq 0.69 percent. In Europe, the FTSEurofirst 300 index of top regional shares added 0.64 percent.
A surprise improvement in German business morale added to optimism over the euro zone's recovery and helped lift European shares. An one-notch increase in Spain's sovereign debt rating by Moody's Investors Service Inc also helped stocks in Europe.
The latest U.S. economic data disappointed, but once again the weakness was put down to bad weather. Instead U.S. investors focused on a string of merger and acquisition activity that is pumping cash into the market and signalling growing confidence among business leaders.
Radio frequency chipmaker RF Micro Devices Inc (RFMD.O) agreed to buy peer TriQuint Semiconductor Inc (TQNT.O) for about $1.6 billion, and Men's Wearhouse Inc (MW.N) raised its offer for Jos. A. Bank Clothiers Inc (JOSB.O) by more than 10 percent.
U.S. Treasuries prices fell as money flowed to equities, but volumes were low. Yields on the benchmark 10-year note were at 2.74 percent, having edged up 2 basis points overnight.
The swing in risk sentiment boosted currencies leveraged to global growth with the Australian dollar up around $0.9032, having gained half a cent on Monday.
The rise in the Nikkei helped nudge the U.S. dollar up to 102.50 yen, while the euro was tracking sideways at $1.3735.
Gold was firm at $1,336.05 an ounce after touching a four-month high, but faces stiff resistance at October's peak of $1,361.60.
Oil prices faded just a little on Tuesday after supply worries gave them a boost the session before. Brent crude dipped 11 cents to $110.53 a barrel, while U.S. oil eased 29 cents to $102.53 a barrel.
Join the Conversation
- Travel Alert: Australia Mulls To Review Airport Security Policy, Could Allow Scissors, Metal Cutlery Back In Planes
- 5 Likely Reasons Why You Are Not Getting Hired
- This Is How Obesity Weighs Down Global Economy By 2 Trillion Dollars Every Year
- Consumer Alert: Retailer Simons Goes Out Of Quebec, To Open Five Stores Across Canada
- Signs That You Are A Smartphone Zombie (And The Dangers This Poses)
- Russia Is Ready for Shooting War, Will Likely Win Looming Nuclear Showdown with U.S. – Report
- Home Depot Early Black Friday 2014 Sale Up To Nov. 29, 2014 Includes Special Buys On Appliances Such As Samsung Refrigerators, Whirlpool Electric Ranges And Hoover Vacuum Cleaners
- Microsoft Band Runs Out Of Stock, But Offers $10 Gift Voucher To Wait-Listed Customers
- Google Joins Forces with GoPro Inc with New Google Maps Focusing on Destination
- Target Early Black Friday 2014 Sale Ad Released For Nov. 26, 2014 Includes Deals On Toys, HDTVs And Video Games Such As ‘FIFA 15’ And ‘NHL 15’ For Xbox 360 [WATCH VIDEO]
- 16GB iPhone 6 for $99 at Sam’s Club is the Best 2014 Black Friday Deal Around