World Stocks Rally on Dubai ‘Stability’

LONDON/SEOUL/ZURICH — Stocks rallied from Shanghai to New York and the dollar fell as Dubai said half of its debts are “stable” and Chinese manufacturing grew at the fastest pace in five years.

By (Agencies)

Published: Wed 2 Dec 2009, 11:10 PM

Last updated: Thu 2 Apr 2015, 3:46 AM

The MSCI World Index advanced 1.7 per cent at 9:37 a.m. in New York and the Standard & Poor’s 500 Index added 1.1 per cent.

“The fallout from the Dubai situation and the overall contagion effect should be both short-lived and quite limited,” wrote Suki Mann, a credit strategist at Societe Generale SA in London, in a research note.

Asia Climbs

Asian stock markets rose on Tuesday following modest gains on Wall Street and amid increased confidence in Dubai.

Most major benchmarks were up about 1 per cent or more while Tokyo stocks surged on news the Central Bank was holding an unscheduled board meeting amid government pressure to do more about the surging yen and falling consumer prices.

In Japan, the Nikkei 225 stock average closed up 226.65, or 2.4 per cent, to 9,572.20.

Hong Kong’s Hang Seng gained 274.14, or 1.3 per cent, to 22,095.64 and South Korea’s Kospi rose 14.12, or 0.9 per cent, to 1,569.72.

Elsewhere, Australia’s benchmark added 0.4 per cent, Singapore’s market was up 1 per cent and India’s Sensex advanced 0.9 per cent. China’s Shanghai index rose 0.8 per cent.

Europe Follows Suit

European shares advanced as reports showed manufacturing in China and Europe grew and concern eased that losses from a possible default by Dubai World will spread.

HSBC Holdings Plc and Deutsche Bank AG rose at least 2.5 per cent.

The Dow Jones Stoxx 600 Index added 2.2 per cent 244.53 as of 3:06p.m. in London, set for the steepest gain since August, as all 19 industry groups advanced. The measure has surged 23 per cent this year amid signs the global economy is improving. Stocks in the European benchmark index are valued at about 55 times reported earnings, near the highest level since June 2003, according to data compiled by Bloomberg.

National benchmark indexes rose in all 18 western European markets. The UK’s FTSE 100 gained 2 per cent as Eurasian Natural Resources Corp. rallied. France’s CAC 40 increased 2.2 per cent and Germany’s DAX added 2.1 per cent. —

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