World stocks marched higher Tuesday after Japan's factory output grew again after a record drop and investors got a shot of confidence from efforts to ease Greece's debt crisis. Oil prices rose to near $102 a barrel, and the dollar strengthened against the yen but weakened against the euro.
In early European trading, Germany's DAX jumped 2 percent at 7,271.56 and France's CAC 40 added 1.6 percent to 4,604.51. The FTSE 100 index of leading British shares was up 1.4 percent to 6,001.14. U.S. stocks were poised to rise. Dow futures were up 0.9 percent to 12,541 while S&P 500 futures were up 0.9 percent to 1,342.20.
Japan's Nikkei 225 stock average rose 2 percent to close at 9,693.73. Industrial output rose a modest 1 percent in April after a record 15.5 percent drop in March, when the country's economy was slammed by supply disruptions in the wake of the twin disasters. But the government also said factory output - a key barometer of Japan's economic health - will pick up speed in the coming months.
South Korea's Kospi jumped 2.3 percent to end at 2,142.27 while Australia's S&P/ASX 200 gained 0.9 percent to finish at 4,708.30. Hong Kong's Hang Sang added 2.2 percent to close at 23,684.13. Benchmarks in Taiwan, Singapore, India and Thailand also gained. "Across Asia, regional markets are mostly higher, albeit on light volumes, after positive economic data out of Japan," Ben Potter, a research analyst at IG Markets wrote in a research note.
The rebound followed a day of muted trading on Monday amid reports that European officials were preparing new support measures for Greece. "The euro debt crisis seems to be already eased and investors are putting their focus back to solid growth in China," said Castor Pang, research director at Core Pacific-Yamaichi in Hong Kong. "At least for the short term, the rebound will continue."
Mainland Chinese shares snapped an eight-session losing streak as the Chinese yuan closed at a record high level of 6.4845 to the U.S. dollar, drawing investors hoping to gain from the Chinese currency's gradual appreciation. The benchmark Shanghai Composite Index gained 1.4 percent to 2,743.47 and the Shenzhen Composite Index of China's smaller, second exchange climbed 2 percent to 1,111.90. Shares in paper processing, machinery and petrochemical companies led the gains.
The announcement of an increase in electricity rates for industrial users in some provinces drove a rally in power company shares. Huaneng Power International, one of several big state-owned electricity generators, gained 2 percent and Henan Yuneng Holdings Co. hit the daily limit of 10 percent.
Benchmark oil for July delivery was up $1.33 to $101.92 a barrel at in electronic trading on the New York Mercantile Exchange. The benchmark contract last settled up 36 cents at $100.59 on Friday. Markets in the U.S. were closed Monday for the Memorial Day holiday. The euro strengthened to $1.4412 from $1.4344 in late trading Monday. The dollar rose to 81.61 yen from 80.86 yen.
Source: OfficialWire
