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Asian stocks rose for a second day on speculation China and Europe will do more to bolster economic growth, boosting the outlook for the region’s exporters.
Nikkei 225 8,729.29 +95.40 +1.10%
S&P/ASX 200 4,121 +47.38 +1.16%
Shanghai Composite 2,369.97 +21.67 +0.92%
LG Electronics Inc., South Korea’s electronics maker that depends on Europe for 16 percent of its sales, rose 7.6 percent.
Guangzhou R&F Properties Co. led Chinese developers higher as a leading index rose and after a report the country will bring forward infrastructure investment.
Woori Finance Holdings Co. jumped 6.5 percent in Seoul as South Korea’s top financial regulator said the government needs to cut its stake in the company.
European stocks climbed the most in a month amid speculation that China and the euro area will do more to stimulate global economic growth.
China plans to speed up approval of infrastructure projects and allocate construction funding faster to aid growth, the China Securities Journal reported.
Germany’s Chancellor, Angela Merkel, said she may disagree with France’s President, Francois Hollande, on how to tackle the sovereign-debt crisis at a meeting on May 23.
Germany will consider all ideas on bolstering euro-area growth, Finance Minister Wolfgang Schaeuble said as he and his French counterpart, Pierre Moscovici, met.
National benchmark indexes climbed in 16 of the 18 western- European markets. The U.K.’s FTSE 100 and France’s CAC 40 advanced 1.9 percent. Germany’s DAX increased 1.7 percent.
Vodafone gained 4.2 percent to 172 pence. Europe’s largest mobile-phone company said fourth-quarter service revenue excluding currency swings and acquisitions increased 2.3 percent. It rose 0.9 percent in the previous quarter. Analysts had estimated growth of 1.7 percent.
Sonova tumbled 9.9 percent to 84.10 francs. The maker of Phonak hearing aids reported full-year earnings that missed analysts’ estimates as the strength of the Swiss franc reduced the value of sales from outside its domestic market.
U.S. stocks erased earlier gains as concern that Greece would exit the euro and a tumble in Facebook Inc. shares overshadowed economic optimism.
Stocks erased gains after Dow Jones reported that former Greek Prime Minister Lucas Papademos said the nation is considering preparations to leave the shared currency. European Union leaders are planning to gather in Brussels tomorrow to discuss how to revive growth. Equities rallied earlier today as sales of existing U.S. homes rose in April while investors speculated China and Europe will stimulate growth.
Facebook, the social networking site that raised $16 billion in an initial public offering last week, plunged 8.9 percent to $31. The offering valued Facebook at 107 times trailing 12-month earnings, more than every S&P 500 member except Amazon.com Inc. and Equity Residential.
JPMorgan Chase & Co. (JPM) jumped 4.6 percent to $34.01, rebounding from a 20 percent plunge following its May 10 disclosure of at least $2 billion in trading losses. Goldman Sachs Group Inc. analysts reiterated their buy rating on the stock today, saying the company’s plan to halt share buybacks reflects a “prudent decision” to preserve capital given the volatility and uncertainty around its chief investment office’s holdings.
Urban Outfitters Inc. climbed 7.4 percent to $28.10. The retailer that rehired co-founder Richard Hayne as chief executive officer this year reported first-quarter profit that beat analysts’ estimates on record sales.
Ralph Lauren Corp. added 2.7 percent to $150.27. The retailer of its namesake brand clothing reported profit that beat analysts’ estimates because of sales gains at its own shops and department stores.
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