Investing.com - Asian stocks advanced in Thursday trade, getting a lift from positive news from Germany and Italy on European debt and the strong overnight performance in global equities.
During early Asian trade, Hong Kong\'s Hang Seng Index added. 1.7% to 20,048.00, Australia ’s S&P/ASX 200 Index climbed 0.56% to 4,207.10, while Japan’s Nikkei 225 Index added 0.75% to trade at 8,829.28.
Along with the Nikkei, the broader-based Topix Index of all issues listed on the first section of the Tokyo Stock Exchange advanced 0.86% to 760.12.
Earlier Wednesday, Greek and German stock markets surged following a ruling by Germany’s Federal Constitutional Court upholding German participation in last year’s Greek bailout and the formation of the European Financial Stability Facility.
Plaintiffs in the case had sought to block the country’s role in euro-zone bailouts.
The court, however, ruled that future German bailout efforts would require parliamentary approval.
Also Wednesday, Italy’s Senate voted to approve a USD76 billion austerity plan to appease demands from the European Central Bank that the country take more aggressive steps to reduce its budget deficit.
European stocks finished Wednesday’s session higher, with France’s CAC 40 rising 3.62%, Britain’s FTSE 100 climbed 3.14%, and Germany’s DAX rose sharply by 4%.
The news on Germany and Italy helped ease European debt concerns on Wall Street as U.S. stocks posted their first gain in four days.
The Dow Jones Industrial Average rose 2.47%, the Nasdaq Composite Index added 3.04%, and the S&P 500 advanced 2.86%.
In Sydney, financial issues moved higher with Westpac Banking Corp. higher by 0.72% and Madquarie Group Ltd. adding 1.28%.
Automobile manufacturers in the region fared well in early trade with Nissan Motor Co. up 1.2% and South Korea’s Hyundai Motor Co. advancing 1.5% in Seoul.
Manufacturers in Tokyo put in uneven performances after Japan’s Economic and Social Research Institute reported that core machinery orders dropped by 8.2% in July, below economist’s forecast of a 4.2% contraction.
Mitsubishi Heavy Industries Ltd. added 1.6%, while construction equipment manufacturer Komatsu Ltd. fell 1.1%.
Japan’s Nikkei Shimbun reported that Kobe Steel Ltd., the country’s fourth largest steelmaker, was in talks with Cliffs Natural Resources Inc. to construct a USD200 million plant in the U.S..
Kobe Steel shares advanced 0.73% in early trade.
The outlook for European stocks was mixed. France’s CAC 40 futures was higher by 0.26% to 3,100.10, Britain’s FTSE 100 futures fell 0.18% to 5,349.60, while Germany’s DAX futures was down 0.14% to 5,448.90.