SYDNEY (MarketWatch) — Asia markets traded mostly higher on Wednesday, as cooling inflation in China gave some banking and property shares a boost, and investors cheered plans by Italian Prime Minister Silvio Berlusconi to resign as a step toward resolving crippling debt problems in Europe.
Chinese data Wednesday showed inflation rates cooling significantly, which helped send Hong Kong-listed banking and property shares higher on the hopes of possible policy easing from Beijing.Italian effect
Wednesday’s performance in Asia followed a positive finish for U.S. stocks after reports that Italy’s Berlusconi had agreed to resign once parliament approves austerity measures in a vote expected next week.
Pressure had been mounting on the leader of the euro zone’s third-largest economy to step down, as Italy’s surging borrowing costs added to market concerns about Europe.
“Investor scepticism of Italy has been amplified in recent months by the country’s relatively unambitious reform agenda and lackluster implementation,” strategists at Barclays Capital said.
Peter Esho, chief market strategist at City Index in Sydney, said Asian investors were “pleased that [Europe] is working through its issues.”
“The market is not too concerned with Italy’s internal politics, which have been colorful for a long time — the market is more concerned with addressing the financial issues,” Esho said. “It seems that there is a commitment of willingness there by all parties to get that in order.”
“The fact [is] that we’re working through Greece and Italy; slowly but surely, these issues are being tackled,” he said.
marketwatch.com
Chinese data Wednesday showed inflation rates cooling significantly, which helped send Hong Kong-listed banking and property shares higher on the hopes of possible policy easing from Beijing.Italian effect
Wednesday’s performance in Asia followed a positive finish for U.S. stocks after reports that Italy’s Berlusconi had agreed to resign once parliament approves austerity measures in a vote expected next week.
Pressure had been mounting on the leader of the euro zone’s third-largest economy to step down, as Italy’s surging borrowing costs added to market concerns about Europe.
“Investor scepticism of Italy has been amplified in recent months by the country’s relatively unambitious reform agenda and lackluster implementation,” strategists at Barclays Capital said.
Peter Esho, chief market strategist at City Index in Sydney, said Asian investors were “pleased that [Europe] is working through its issues.”
“The market is not too concerned with Italy’s internal politics, which have been colorful for a long time — the market is more concerned with addressing the financial issues,” Esho said. “It seems that there is a commitment of willingness there by all parties to get that in order.”
“The fact [is] that we’re working through Greece and Italy; slowly but surely, these issues are being tackled,” he said.
marketwatch.com
No comments:
Post a Comment