A roundup of trading on major world markets:
NEW YORK – US stocks are rose overnight on signs of resilience in Europe’s debt markets and an encouraging report on growth in China.
Debt auctions by Spain, Greece and Europe’s bailout fund drew solid interest from investors on Tuesday, easing fears that recent credit-rating downgrades would prevent troubled nations from obtaining funds. Many had feared the downgrades would increase borrowing costs and intensify the region’s debt crisis.
The Chinese government said earlier that its economy slowed less in the fourth quarter than originally predicted.
The Dow Jones industrial average rose 60.01 points, or 0.5 per cent, to 12,482.07, while the S&P 500 index was up 4.58 points, or 0.4 per cent, at 1,293.67. The Nasdaq composite index closed 17.41, or 0.6 per cent higher at 2,728.08.
LONDON – Markets brushed aside fears that Greece may be heading for a devastating debt default and rallied on Tuesday on Chinese growth figures, which eased concerns of an abrupt slowdown in the world’s second-largest economy.
Government figures showed that the slowdown in Chinese growth in the final quarter of 2011 was not as big as had been feared and would still see Chinese monetary authorities loosen policy. Though the drop to 8.9 per cent represented the lowest rate in two and a half years, the markets had been expecting a bigger decline to 8.7 per cent.
Following Asia’s strong performance, European and US markets have traded strongly.
Germany’s DAX closed 1.8 per cent higher at 6,332.93 while the CAC-40 in France rose 1.4 per cent to 3,269.99. The FTSE 100 index of leading British shares ended 0.7 per cent higher at 5,693.95.
The euro was up 0.6 per cent to $1.2740.
HONG KONG – Asian markets rose, led by Shanghai and Hong Kong, after the better-than-expected Chinese economic growth data, while a successful French bond sale and gains in European stocks also lent support.
However, the eurozone debt cloud continued to hang over trade as Friday’s downgrade of nine countries, including France, was followed by a ratings cut for the bailout fund set up to help under-pressure European economies.
Shanghai surged 4.18 per cent, or 92.18 points, to 2,298.38 and Hong Kong rallied 3.24 per cent, or 615.55 points, to 19,627.75.
Tokyo gained 1.05 per cent, or 88.04 points, to 8,466.40, Sydney finished 1.65 per cent, or 68.3 points, higher at 4,215.6, while Seoul rose 1.48 per cent, or 27.59 points, to 1,886.86.
China in the morning released figures showing the world’s second-largest economy grew 8.9 per cent in the last quarter of 2011, which although slower than the previous three months was better than the 8.6 per cent expected.
Over the whole of 2011, growth slowed to 9.2 per cent from 10.4 per cent the previous year.
The figures indicated that while the economy was clearly slowing as a result of troubles in its key export markets in Europe and the United States, it was not having a worrying impact.
WELLINGTON – Wellington closed up 0.75 per cent, or 24.17 points, at 3,234.81.