Stocks: Tuesday’s review
Asian stocks rebounded from a 16- month low, sending the benchmark regional index to its biggest advance since April 2009, amid optimism that European leaders may agree on ways to tame the region’s credit crisis.
HSBC Holdings Plc (HSBA), Europe’s No. 1 lender by market value, gained 3.6 percent in Hong Kong after a report the European Central Bank may restart covered-bond purchases and take further measures to ease monetary conditions. Canon Inc. (7751), a camera maker that depends on Europe for about a third of its sales, surged 4.3 percent in Tokyo. BHP Billiton Ltd. (BHP), the world’s biggest mining company, jumped 4.1 percent in Sydney after crude and copper prices advanced.
European stocks climbed the most in 16 months amid speculation policy makers will increase efforts to contain the region’s sovereign-debt crisis. Financial markets are looking for stronger leadership from policy makers to help Greece overcome the current debt crisis.
National benchmark indexes rallied in all 18 western European markets today. Germany’s DAX Index soared 5.3 percent, France’s CAC 40 rose 5.7 percent and the U.K.’s FTSE 100 advanced 4 percent.
BNP Paribas and Societe Generale pushed a gauge of European lenders higher, soaring 14 percent to 30.05 euros and 17 percent to 20.50 euros, respectively. Credit Agricole SA (ACA) jumped 13 percent to 5.19 euros.
Austria’s Erste Group Bank AG (EBS) surged 8.3 percent to 20.54 euros while Deutsche Bank AG (DBK), Germany’s biggest lender, increased 13 percent to 28.29 euros.
Allianz SE (ALV) and Axa SA (CS), Europe’s biggest insurers, climbed 8 percent to 70.18 euros and 9.3 percent to 9.81 euros, respectively. Delta Lloyd NV (DL) climbed 11 percent to 11.40 euros. A gauge of insurance companies in the Stoxx 600 recorded the biggest two-day gain since October 2008.
Rio Tinto Group led a rally in raw-material shares, surging 7.8 percent, as metal prices rose.
MAN SE (MAN) rose the most in two years as European Union regulators cleared Volkswagen AG (VOW)’s takeover of the truckmaker.