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Nikkei Jumps Nearly 2% on Spain Aid Deal
Reuters | June 10, 2012 | 08:16 PM EDT
Asian markets jumped on Monday after euro zone finance ministers agreed on an aid package to help Spain.
Stocks took cues from U.S. stock index futures, which pointed to steep gains. Futures opened up more than 1 percent on the news that the ministers would lend Spain up to 100 billion euros ($125 billion) to help the country's battered banks.
The size of the aid package was larger than expected, removing a huge cloud that has been hanging over financial markets. Investors had feared that a banking crisis in the euro zone's fourth-largest economy could have compounded the currency bloc's troubles with Greece.
The FTSE CNBC Asia 100 Index [ .FTFCNBCA 5784.81 +98.55 (+1.73%) ], which measures markets across Asia, gained 0.8 percent. Market volume was slightly thinner than usual, with Australia shut for a public holiday.
Japan's benchmark Nikkei average [ .N225 8644.52 +185.26 (+2.19%) ] opened up 1.8 percent at 8,612.14, while the broader Topix gained 1.6 percent to 728.99.
Kansai Electric Power shares rose 0.9 percent despite a Nikkei business daily report that the company is to continue preparing for rolling blackouts this summer, despite receiving de facto permission from the government to restart its Ohi nuclear power plant.
Seoul shares started strongly, rising on relief among investors after euro zone finance ministers agreed to a rescue fund to bail out debt-stricken Spanish banks.
Shipbuilders led the early rally. Samsung Heavy Industries soared 4.5 percent while Daewoo Shipbuilding & Marine Engineering climbed 3.8 percent.
The Korea Composite Stock Price Index (KOSPI) [ .KS11 1868.19 +32.55 (+1.77%) ] was up 1.5 percent at 1,862.66 points.
New Zealand shares rose 0.5 percent in early trade as investors were lifted by moves to bailout Spain's banking sector and Chinese data over the weekend pointed to the prospect of more policy easing to support the slowing economy.
The benchmark NZX-50 index was 17 points or 0.5 percent higher at 3,466.55. Most of the top-10 stocks posted solid gains, with top stock Telecom up 1.2 percent, and the number two stock Fletcher Building 1.5 percent higher.
Commodities also rose in early trade, with crude oil futures up $2 in early Asian trading.
London Brent crude [ LCOCV1 101.96 +2.49 (+2.50%) ] rose as much as $2.11 to $101.58 a barrel, while U.S. light, sweet crude [ CLCV1 86.25 +2.15 (+2.56%) ] gained by the same amount to as much as $86.15.
