Forexpros – Asian stocks rallied on Wednesday, buoyed by an International Monetary Fund decision to hike a 2012 growth forecast to 3.5% from 3.3% as well as on solid turnout at a Spanish government bond auction.
During Asian trading on Wednesday, Hong Kong’s Hang Seng Index was up 1.07%, Australia’s S&P/ASX200 was up 1.29%, while Japan’s Nikkei 225 Index was up 1.62%.
Asian stocks shot up early in the session on the coattails of their U.S. and European counterparts.
The Spanish government sold at auction 12-month and 18-month bills with no major difficulties, and while yields were high at 2.623%,, the country did raise more than it targeted.
Also in Europe, the ZEW Centre for Economic Research reported that its index of German economic sentiment jumped to 23.4 in April from 22.3 in March, much better than analysts’ calls for a 20.0 reading.
Coupled with the International Monetary Fund’s statement that it expects the global economy to expand by 3.5% in 2012, according to the latest edition of its World Economic Outlook, up from a January forecast for 3.3%, markets shot up, while safe-haven assets like the dollar and the yen fell earlier.
Solid corporate earnings in the U.S. fueled the rally as well.
In Japan, industrial production fell 1.6% in February from January, more than estimates of 1.3%.
However, bulls beat out the bears in Asia, sending stocks prices making healthy gains.
In Hong Kong, the top gainers included CNOOC, up 4.31%, China Resources Power, up 2.25%, and Wharf Holdings, up 2.23%.
Top Australian gainers included Kagara Zinc, up 18.18%, OM Holdings Limited, up 8.89%, and Linc Energy, up 6.79%.
European stock futures indicated a higher opening.
France’s CAC 40 futures pointed to a gain of 0.22%, while Germany’s DAX 30 futures signaled a gain of 0.28%. Meanwhile, in the U.K., the FTSE 100 futures indicated a gain of 0.22%.
Dow Jones Industrial Average futures were up 0.12% while the S&P 500 futures were up 0.12% as well.
Later Wednesday, Australia will publish an index of leading economic indicators, which should shed light on the economy’s direction.
Afterwards, the National Australia Bank will release its Quarterly Business Confidence Index.
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