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Asian stocks rose amid speculation global policy makers will join the Reserve Bank of Australia in taking steps to stimulate economic growth and after a four-day drop left the regional gauge at the cheapest level this year.
Nikkei 225 8,382 +86.37 +1.04%
S&P/ASX 200 4,043.7 +58.67 +1.47%
Shanghai Composite 2,313.22 +4.67 +0.20%
Commonwealth Bank of Australia, the nation’s biggest lender by market value, advanced 1.9 percent as the central bank cut interest rates.
Canon Inc., a Japanese camera maker whose shares fell yesterday to the lowest level since April 2009, gained 3.4 percent on a stock buyback plan.
Qantas Airways Ltd. tumbled 19 percent in Sydney to a record low after forecasting full-year profit may plunge as much as 91 percent.
European stocks extended their advance, snapping a four-day decline, as the U.S. services industry expanded at a faster pace than estimated and investors speculated that policy makers will stimulate economic growth.
Finance ministers and central bank governors from the Group of Seven economies agreed to coordinate their response to the euro area’s sovereign-debt crisis on a conference call.
G-7 officials said they will work together to help Greece and Spain place their public finances on a sustainable footing, Japan’s Finance Minister, Jun Azumi, told reporters in Tokyo following the call today.
A gauge of euro-area services and manufacturing output contracted in May. A composite index based on a survey of purchasing managers in both industries dropped to 46 from 46.7 in April, London-based Markit Economics said today, compared with an estimate of 45.9 published on June 1.
National benchmark indexes climbed in 13 of the 16 western European markets that opened today. Germany’s DAX fell 0.2 percent, while the Swiss Market Index was little changed. France’s CAC 40 advanced 1.1 percent.
CaixaBank added 2.6 percent to 2.17 euros and Bankinter SA rose 2.3 percent to 2.53 euros. Spain’s Budget Minister, Cristobal Montoro, said that the European Union should provide financial aid to the banks.
Telekom Austria AG surged 4.3 percent to 7.57 euros after News Magazine reported that Carlos Slim, the world’s richest man, has acquired a 4.1 percent stake in the company.
The Standard & Poor’s 500 Index rose, amid the cheapest valuation in six months, after an unexpected increase in a measure of service industries and as a report said Europe’s bailout fund was preparing a credit line for Spain.
Equities reversed early losses today as the Institute for Supply Management’s index of non-manufacturing businesses, which covers about 90 percent of the economy, unexpectedly rose to 53.7 last month from April’s 53.5. The median forecast of 75 economists projected 53.4. Finance ministers and central bank governors from the world’s leading economies agreed to coordinate their response to Europe’s crisis on a conference call that dealt with Spain and Greece.
Spain called for outside support for the first time to battle the financial crisis as Budget Minister Cristobal Montoro said European institutions should help shore up the nation’s lenders. JPMorgan (JPM) climbed 3.2 percent to $31.99. Hewlett-Packard (HPQ), the world’s largest personal-computer maker, rose 2.9 percent to $21.68.
SanDisk Corp. surged 5.5 percent to $33.41. The company, which makes memory chips used in mobile devices, was rated outperform in new coverage at Pacific Crest Securities.
Starbucks Corp. dropped 2.8 percent to $52.41. The world’s largest coffee-shop operator agreed to buy Bay Bread LLC for $100 million in cash, making its largest acquisition to further expand its offering of food with pastries and sandwiches.
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