Asian stocks rise after Wall Street rebound
Updated: 2007-11-19 10:33
Hong Kong -- Asian stocks rose on Monday, with investors picking up beaten-down shares following a rebound on Wall Street, while firmer oil prices helped shore up demand for energy shares.
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Oil rose on the back of a softer dollar with London Brent crude for January delivery popping above $92 a barrel in early Asian session.
At 0037 GMT, Tokyo's Nikkei average (.N225) had risen 0.6 percent, steadying from Friday's 1.6 percent slide, while MSCI's measure of other Asia Pacific stocks (.MIAPJ0000PUS) climbed 0.8 percent.
South Korea's benchmark KOSPI (.KS11) added 0.2 percent, and Australia's key S&P/ASX 200 index (.AXJO) put on 1.3 percent.
"The recovery in US stocks and a slightly weaker yen are likely to help boost the Nikkei, with exporters seeing some buying," said Yutaka Miura, senior technical analyst at Shinko Securities.
"But with concerns still lingering about long-term moves in US stocks and the economy, there is no real reason to buy it up too high."
Last week, MSCI's measure of Asia Pacific stocks excluding Japan (.MIAPJ0000PUS) dropped 3.4 percent, marking its third consecutive week of losses. It has fallen about 10 percent from the November 1 record high, but was still up 34 percent this year.
Bank stocks, hammered by credit fears, mostly rose, led by Japanese firms such as Mitsubishi UFJ (8306.T) and Resona Holdings (8308.T). Both stocks advanced more than 3 percent each.
Australian banks also gained ground, with ANZ Banking Group and Commonwealth Bank (CBA.AX) both up more than 1 percent, but South Korea's top lender Kookmin Bank (060000.KS) shed 1.7 percent, suggesting investors were still selective in the sector.
Also in favor were the major miners, with takeover target Rio Tinto (RIO.AX) rising 3.6 percent and suitor BHP Billiton (BHP.AX) adding 1.9 percent.
Investors bought energy stocks, betting that the rise in oil prices will help boost profits. Woodside Petroleum (WPL.AX) put on 2.6 percent and Japan's INPEX Holdings (1605.T) firmed 1.8 percent.
On Wall Street, the blue-chip Dow (.DJI) climbed 0.5 percent on Friday, while the tech-heavy Nasdaq Composite Index (.IXIC) added 0.7 percent.
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