Bangkok: Asian markets opened higher on Tuesday, as investors took heart from strong consumer spending in the US and a merger of two major banks in debt-stricken Greece.
Japan’s Nikkei 225 index rose 1.2 per cent to 8,956.83. Hong Kong’s Hang Seng index gained 2.1 per cent to 20,274.20, and South Korea’s Kospi index was 1 per cent higher at 1,847.98. Australia’s S&P ASX 200 rose 0.7 per cent at 4,292.80.
The dollar was weaker against the yen and the euro.
European shares jumped on Monday after Greece’s second- and third-largest lenders agreed to combine, creating the country’s largest bank. Greece’s government and central bank have been urging banks to merge, saying it would help them survive.
Banking stocks have since welcomed the merger. Japan’s Mitsubishi UFJ Financial Group Inc. rose 3.3 per cent, while Bank of China Ltd. gained 3.2 per cent.
Meanwhile, China Construction Bank Corp jumped 4.3 per cent, a day after Bank of America Corp rose 8.1 per cent after saying it would sell half of its stake in the Chinese bank.
In the US on Monday, stocks rose broadly after it became clear that Tropical Storm Irene had caused far less damage than many had feared. Insurance stocks rose sharply as analysts lowered their estimates of how much damage the storm would cause.
The Dow Jones industrial average rose 2.3 per cent to close at 11,539.25. The Standard & Poor’s 500 index rose 2.8 per cent to 1,210.08. The widely used market benchmark is now up 8.1 per cent since Aug. 8, when it hit low for the year because of a downgrade of the US government’s credit rating.
The technology-focused Nasdaq composite index rose 3.3 per cent to 2,562.11.
An increase in consumer spending helped push stocks higher. The government reported that spending rose 0.8 per cent in July. It was a sharp turnaround from June, when Americans cut spending 0.1 per cent, the first decline in 20 months.
In currencies, the euro rose $1.4516 from $1.4505 late on Monday in New York. The dollar slipped to 76.87 yen from 76.95 yen.
Benchmark oil for October delivery rose 35 cents to $87.62 per barrel on the New York Mercantile Exchange. The contract rose $1.90 to end at $87.27 per barrel on the Nymex on Monday.
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