Asia Market Reports

Asia Banks Jump :

Asian markets jumped today, ahead of a possible European Central Bank rate cut. Regional investors are expecting to see the central bank cut rates to a record low of one percent. Results of the U.S. bank stress test also come today, and the Treasury Department has said none of the 19 banks are at risk of insolvency. Japan's Nikkei rallied after a 3-session holiday to a 6-month high, led by soaring financials like Mitsubishi UFJ. Sumitomo Mitsui rose sharply after it said it will buy Citigroup's Japan brokerage for $5.9 billion. Seoul shares hit a 7-month high led by Korea Exchange Bank, which surged after a report that Korea Development Bank was considering buying the lender. And a surprise rise in Australian employment helped lift Sydney stocks, while News Corp gained after chairman Rupert Murdoch said the worst effects of the recession are behind the media company.


Market Report - Asia on Hold :

A recent surge in Asian shares lost their steam ahead of U.S. monthly jobs data which will help signal whether the global economy has hit bottom.

U.S. bank stress test results were out after the close of Wall Street on Thursday. They offered little surprises, showing less capital is needed to keep the banks afloat than previously feared.

A further dose of confidence on the economy will be key in extending the rally in global stocks.

Asian shares, for example, are up about 9 percent this week, bringing gains since their 2009 low in early March to around 51 percent.

There are, however, reasons to worry.

A weak U.S. bond auction raised questions on how much the world's top economy will have to pay to attract investors like China to finance its big stimulus plan.

Some of the optimism about stocks was also affected by a disappointing trading debut in Hong Kong for Zhongwang, Asia's largest maker of aluminum extrusion products.

And corporate earnings were also in focus with companies like Toyota and Toshiba announcing steep losses.


Source NTDTV