Investing.com - Asian stocks moved higher in Thursday trade, lifted by the overnight rise on Wall Street and prospects for progress on addressing Europe’s sovereign debt crisis.
During early Asian trade, Japan’s Nikkei Index rose 1.73% to 8,531.69, while Australia’s S&P/ASX 200 climbed 2.76% to 4,035.20.
The Topix Index of all shares listed on the first section of the Tokyo Stock Exchange, gained 1.65% to trade at 738.21.
Hong Kong’s Hang Seng Index advanced 4.3% to 16,950.53, in its first day of trade following a public holiday.
Earlier Wednesday, the Financial Times reported that European bank regulators will conduct a new round of evaluations on regional banks, in an attempt to avert a shock to the region’s financial system if Greece defaults.
German Chancellor Angela Merkel said that Europe’s rescue fund would only be used as a last resort to save banks and that investors may have to endure more losses as part of a Greek bailout.
“If a country cannot do it using its own resources and the stability of the euro as a whole is put at risk because the country has difficulties, then there’s the possibility of using the EFSF (European Financial Stability Facility), Merkel said after meeting with European Commission President Jose Barroso in Brussels.
Moody’s investor service late Tuesday, cut Italy’s credit rating for the first time in nearly two decades, from AA2 to A2, citing weak growth as an impediment to Italy’s ability to reduce its debt, the second largest in the euro-zone.
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Meanwhile, payroll processing firm ADP said that the U.S. economy added 91,000 non-farm jobs in September, a slight gain from a revised 89,000 the previous month, and above market expectations of a 70,000 increase.
The ADP report also noted that employment in the service sector gained 90,000 in September, the 21st consecutive month of gains.
The encouraging labor numbers lifted Wall Street shares for a second day; The Dow Jones Industrial Average added 1.21%, the Nasdaq Composite Index rose 2.32%, and the S&P 500 was lifted 1.79%.
Resource and mining shares in Sydney led gainers on the Australian market following a bump in world commodity prices. BHP Billiton Ltd. added 2.7%, Rio Tinto Ltd. gained 4.3% and Fortescue Metals Group Ltd. climbed jumped 9.5%.
In Tokyo, Wall Street gains helped to lift exporters, with Sony Corp. up 3.5%, Toshiba Corp. higher by 1.7%, and Mazda Motor Corp. adding 2.1%.
Financials across the region also benefitted from perceived progress on Europe’s debt woes. Commonwealth Bank of Australia advanced 2.9%, HSBC Holdings Plc. rose 2.8%, and Mitsubishi UJF Financial Group Inc. gained 1.8%.
The outlook for European stocks was optimistic. France’s CAC 40 futures was higher by 0.07% to 2,989.40, Britain’s FTSE 100 futures rose 0.05% to 5,103.40, while Germany’s DAX futures climbed 0.14% to 5,500.80.