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Asian stocks rose, with the regional benchmark index headed for the biggest gain in almost eight months, after European Central Bank President Mario Draghi said policy makers will do whatever is needed to preserve the euro.
Nikkei 225 8,566.64 +123.54 +1.46%
S&P/ASX 200 4,209.77 +62.04 +1.50%
Shanghai Composite 2,128.77 +2.76 +0.13%
HSBC Holdings Plc, Europe’s biggest lender, rose 2.6 percent in Hong Kong.
LG Display Co., which makes digital products, gained 7.3 percent in Seoul on expectations earnings will improve.
China Zhongwang Holdings Ltd., which makes aluminum used in rail carriages and airplanes, jumped 6.3 percent in Hong Kong after saying profit will increase.
Hitachi Chemical Co., a Japanese manufacturer of chemical products, surged 8.9 percent after raising its profit forecast.
European stocks advanced for a second day after German Chancellor Angela Merkel and French President Francois Hollande said they would do anything to protect the euro, the U.S. economy grew more than forecast, and companies posted earnings that topped estimates.
Total, France’s biggest oil producer, climbed more than 3 percent. PPR SA (PP), the French owner of the Gucci luxury brand, added 6.3 percent as recurring operating income increased 20 percent.
The Stoxx Europe 600 Index (SXXP) gained 1 percent to 259.03 at 4:01 p.m. in London, after earlier dropping as much as 0.3 percent.
National benchmark indexes climbed in all of the 18 western-European markets today.
FTSE 100 5,627.21 +54.05 +0.97% CAC 40 3,280.19 +73.07 +2.28% DAX 6,689.4 +106.44 +1.62%
Barclays (BARC), the British bank searching for a new management team in the wake of the Libor scandal, jumped 8.1 percent to 166.1 pence. Pretax profit excluding debt-valuation adjustments and other one-time items for the six months ended June 30 rose 13 percent to 4.2 billion pounds ($6.6 billion). That beat the 3.9 billion-pound median estimate of analysts.
PPR added 6.3 percent to 120.35 euros, the largest gain since October, as it reported first-half recurring operating income of 815.3 million euros, exceeding the median estimates of analysts for 785 million euros. PPR said that it’s confident full-year growth will exceed that of 2011 as it steps up emerging-markets expansion.
EADS (EAD) soared 5.4 percent to 29.75 euros. Earnings before interest and taxes rose to 1.4 billion euros from 720 million euros a year earlier, excluding non-recurring charges and currency movements. That was more than the average projection of 881 million euros.
Michelin & Cie. (ML) gained 7.3 percent to 54.93 euros as the world’s second-largest tiremaker said first-half profit jumped 36 percent. Operating income, excluding one-time gains and losses, advanced to 1.32 billion euros from 971 million euros a year earlier. Analysts had expected operating profit of 1.28 billion euros.
Renault SA (RNO), France’s second-biggest carmaker, climbed 6.3 percent to 35.92 euros as it reported earnings before interest, taxes and one-time items of 482 million euros, beating the 363 million-euro average estimate of seven analysts surveyed by Bloomberg.
Cie. de Saint-Gobain SA, Europe’s biggest supplier of building materials, plunged 12 percent to 24.26 euros, its biggest drop since February 2009, as it reduced its full-year outlook because of Europe’s economic crisis.
Vallourec SA (VK) slumped 8.8 percent to 32.51 euros as the producer of steel pipes for the oil and gas industry reported a 50 percent decline in second-quarter profit.