Investing.com - Asian stocks moved higher in Friday trade, mirroring strong showings from European and U.S. bourses following the announced plan by EU leaders to rein in the region’s debt threat.
During early Asian trade, Hong Kong’s Hang Seng Index rose 2.35% to 20,152.20, Japan’s Nikkei Index gained 1.43% to 9,054.17, while Australia’s S&P/ASX 200 added 0.77% to 4,381.50.
The Topix Index of all shares listed on the first section of the Tokyo Stock Exchange, advanced 1.48% to trade at 774.11.
Following a second summit in four days, European leaders presented their long-awaited plan to address regional debt threats with an expansion of their rescue fund, and an agreement from private investors to take a 50% write-down in their holdings of Greek government debt.
Officials agreed to expand the European Financial Stability Facility to USD1.4 trillion by persuading bondholders to accrue losses on Greek debt as well a recapitalization of European banks. The deal includes the possibility of an enhanced role for the International Monetary Fund to strengthen the bailout fund.
As part of the proposal, Greece would reduce its public debt to 120% of gross domestic product by 2020, in return for a new USD140 billion tranche of financial assistance from the European Union and the IMF.
Later Thursday, the U.S. Bureau of Economic Analysis reported that gross domestic product expanded by 2.5% in the third quarter, slightly above an anticipated 2.4% gain and the fastest pace since the third quarter of last year.
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By the end of Thursday trade, the Dow Jones Industrial Average gained 2.86% to 12,208.50, the Nasdaq Composite Index surged 3.32% to 2,738.63, and the S&P 500 leapt 3.43% to close at 1,284.59.
Led by bank and financial issues, European stocks raced to their highest finish in 12 weeks, with France’s CAC skyrocketing 6.28% to 3,368.62, Britain’s FTSE 100 gained 2.89% to 5,713.82, while Germany’s DAX jumped 5.35% to 6,337.84.
Meanwhile Friday, Japan’s Ministry of Economy, Trade and Industry reported that industrial production fell by 4% in September after a 0.8% gain in August. Economists had forecast a 2.1% for the period.
Separately, the Japanese Ministry of Internal Affairs said Friday that the nation’s unemployment rate eased down to 4.1% in September from 4.3% in August, outperforming market expectations of a 4.5% rate for the month.
Banking issues across the region led gainers following the announcement from Brussels, with Industrial & Commercial Bank of China gaining 0.94%, HSBC Holdings Plc. rising 2.36%, Commonwealth Bank of Australia adding 0.82%, and Mizuho Financial Group Inc. higher by 1.8%.
Qantas Airways Ltd. shares fell as the company announced that recent strikes by the airline’s engineers and baggage handlers had cost the company AUS68 million.
South Korea’s Samsung Electronics Co. Ltd. posted a 1.3% gain despite Friday’s announcement that the firm’s third quarter profit fell by 23% due sagging global demand for personal computers and televisions.
The outlook for European stocks was pessimistic. France’s CAC 40 futures was lower by 0.21% to 3,391.00, Britain’s FTSE 100 futures shed 0.32% to 5,5728.30, while Germany’s DAX futures surrendered 0.07% to 6,424.30.
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