Asia: Spanish lifeline fuels advance

Date: Monday 11 Jun 2012

Asian markets cheered news of Spain's bailout plan with financials carving out some of the day's biggest gains.

Investors breathed a sigh of relief after Spain’s Finance Minister Luis de Guindos confirmed Europe's fourth largest economy is seeking €100bn in European Union loans for its battered banking sector.

The benchmark Nikkei 225 index closed up 165 points at Japan 8,624 in Tokyo while the Hang Seng climbed 429 points at 18,932 after Spain's deal.

Financials such as heavyweight HSBC beefed up 2.6% after Spain's deal was agreed over the weekend. Spanish banks are struggling to cope with billions of euros of bad loans after the collapse of Spain's property boom and as the country endures its second recession in three years.

China inflation data and a weaker yen also sparked buyer interest across the board. Fresh hopes for Europe boosted recently sold off exporters such as Sharp, Tokyo Electron, Sony and Honda Motor.

Sharp also rose following news of its it will broaden its tie-up with Taiwan's Hon Hai to expand into the smartphone business.

TDK Corp jumped nearly 5% while car giant Mazda Motor tracked on 3%.

China Life Insurance bounced 5.7% while other strong gainers included Aluminum Corp of China, up 4.6% and Cosco Pacific which rallied over 4% in Hong Kong.



CJ

« Go back to news channel

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE