Stocks: Tuesday’s review
Asian stocks rose, with the regional benchmark index headed for its highest close in three months, after Germany backed the European Central Bank’s bond-buying plan, boosting the outlook for Asia-Pacific exporters.Esprit Holdings Ltd., a clothier that counts Europe as its largest market, gained 25 % in Hong Kong after it named a new chief executive officer.
BHP Billiton Ltd., the world’s biggest miner, rose 0.5 % in Sydney after metal prices increased.
Toshiba Corp., which makes semi-conductors and parts for nuclear reactors, advanced 3.5 % in Tokyo as it was raised to outperform at CLSA Asia Pacific Markets.
Japanese utilities gained as they rebounded from last month’s plunge.
European stocks advanced for a third day amid gains by companies that reported better-than-expected earnings.
German factory orders declined more than twice as much as economists forecast in June as sales to euro-area countries slumped.
Italy’s economy contracted for a fourth straight quarter in the three months through June amid an intensifying euro-area debt crisis.
Xstrata added 1.6%. The mining company reported first-half net income of $1.94 billion, beating the average estimate of $1.49 billion in a survey of analysts.
Danske Bank rallied 6.7%. The lender said second-quarter profit surged to 1.5 billion kroner ($250 million), exceeding estimates.
InterContinental Hotels Group Plc (IHG) increased 6.4%. The world’s largest provider of hotel rooms reported a 6% gain in first-half profit and said it will return $1 billion to shareholders through a special dividend and share buyback.
U.S. stocks rose amid better-than-estimated corporate earnings and speculation global central banks will take steps to boost economic growth.
Most groups in the S&P 500 rose today as basic materials had the biggest gains.
Fossil surged 31 %, the most in the S&P 500, to $91.77. It forecast full-year profit excluding certain items of as much as $5.34 a share. Analysts projected $5.27.
MGM Resorts International rallied 7.5 % to $10.08. The largest casino operator on the Las Vegas Strip reported a smaller-than-anticipated loss in the second quarter amid lower winnings in Nevada. Sales (MGM) rose 29 %, boosted by inclusion of the company’s 51 % owned MGM China Holdings Ltd. subsidiary in the overall results for a full quarter, compared with one month a year earlier.
Sirius XM Radio Inc. (SIRI) climbed 4.6 % to $2.30. The largest U.S. satellite-radio company boosted its annual profit forecast after adding subscribers.