Asian stocks rise after $6.3b banking deal

Asian stock markets rose modestly Wednesday after a $6.3 billion banking deal sent Wall Street to new two-year highs.

Trading was subdued ahead of Christmas holidays later this week, with most indexes fluctuating in a tight range.

“I think a holiday mood is there and I don’t expect market turnover will increase a lot,” said Linus Yip, chief strategist at First Shanghai Securities in Hong Kong.

Japan’s Nikkei 225 stock average was up less than 0.1 percent at 10,374.26.

Trading houses benefited from a report in the Nikkei financial daily saying Japanese trading companies plan to boost investments in Chinese startups. Mitsui & Co. rose 1.4 percent, and Mitsubishi Corp. added 1.1 percent.

Hong Kong’s Hang Seng index rose 0.6 percent to 23,143.15, South Korea’s Kospi advanced 0.1 percent to 2,038.91, and Australia’s S&P/ASX 200 was up 0.1 percent at 4,776.80.

Benchmarks in Taiwan, New Zealand and Singapore also advanced, while the Shanghai Composite index fell slightly.

Among big movers, Sanyo Electric Co. shed 4.4 percent and Panasonic Electric Works Co. tumbled 4.3 percent in Tokyo. Investors sold after Panasonic Corp. announced details of a share swap plan to make both companies wholly-owned subsidiaries. Panasonic said it would offer 0.115 of its own shares for one Sanyo share and 0.925 Panasonic share for one Panasonic Electric Works share.

In Hong Kong, Sinopec rose 3.3 percent after Chinese authorities said late Tuesday that state-controlled gasoline and diesel prices would be hiked by about 4 percent after international crude oil prices jumped in recent weeks due to higher demand.

The state-owned company, also known as China Petroleum & Chemical Corp., is Asia’s biggest oil refiner by volume.

In Seoul, technology blue chips advanced, with Samsung Electronics Co. up 1.2 percent and rival LG Electronics Inc. gaining 0.4 percent.

In New York Tuesday, a big banking deal raised hopes that more acquisitions could be on the way. Toronto-Dominion Bank said it is buying Chrysler Financial, the automaker’s old lending arm, from Cerberus Capital Management LP for $6.3 billion.

The Dow Jones industrial average rose 55.03, or 0.5 percent, to close at 11,533.16 — the highest level since Aug. 29, 2008.

The broader S&P 500 index rose 7.52, or 0.6 percent, to close at 1,254.60, while the Nasdaq composite rose 18.05, or 0.7 percent, to 2,667.61.

In currencies, the dollar fell to 83.74 yen from 83.79 late Tuesday. The euro rose to $1.3128 from $1.3101 late Tuesday.

Benchmark oil for February delivery rose 23 cents to $90.05 in electronic trading on the New York Mercantile Exchange. The contract rose 45 cents to settle at $89.82 on Tuesday.

Japanese financial markets will be closed Thursday for the emperor’s birthday, a national holiday.

Source: AP