RTRS: Asia stocks gain as autos rally; ECB awaited
Asian stocks rose on Thursday, with investors seeing a sliver of hope the U.S. economy has bottomed, while the euro edged up before a European Central Bank meeting at which rates may be cut for the last time in a while.
Honda Motor Co (7267.T) shares climbed 9 percent and Hyundai Motor (005380.KS) was up 5 percent, as hopes continued that General Motors (GM.N) could avoid a messy failure and some analysts citing reports industry-wide U.S. sales fell for the 17th consecutive month in March but by less than some feared.
That combined with a pickup in new orders according to a U.S. survey of manufacturing activity and the highest volume of home loan applications since mid January supported a view that the worst for the global economy may have passed.
However, reports showing the world's biggest economy continued heavily to bleed jobs in the last few months tempered optimism about when consumer demand for Asia's exports would recover, keeping gains in commodities contained.
Furthermore, leaders at a G20 summit were divided on the need for more stimulus to support efforts underway already.
"Such lack of consistency among asset classes reflects conflicting inputs," said Dariusz Kowalczyk, chief investment strategist with SJS Markets in Hong Kong.
"U.S. data continues to come in better than anticipated. On the other hand, uncertainty continues over the fate of U.S. automakers, and signs of discord between G20 leaders are deepening," he said in a note.
Japan's Nikkei share average .N225 rose 3 percent. Rolling 20-day returns of 18 percent on the Nikkei outpaced the 14 percent on the MSCI all-country world index .MIWD00000PUS.
Shares of Mitsubishi UFJ Financial Group (8306.T), Japan's top bank, were up 5 percent and one of the strongest supports to the Nikkei.
The MSCI index of Asia Pacific stocks outside Japan .MIAPJ0000PUS was up 3.6 percent, gaining for a third day. Financials and the materials sectors were the biggest boosts to the index.
Bank stocks were underpinned ahead of expected approval later on Thursday of relaxing some U.S. accounting standards, which could lead to a bump in banks' bottom lines.
Hong Kong's Hang Seng index .HSI jumped 4 percent, with HSBC stock (0005.HK) leading the gauge up nearly 7 percent.
WAITING FOR THE ECB
The euro inched up in quiet trade, though dealers were mainly waiting for the outcome of an European Central Bank meeting, expecting the benchmark rate to be cut to a record low 1 percent.
Investors also wanted to see to what extent ECB policymakers were willing to dive into quantitative easing -- vast expansion of a central bank's balance sheet to support growth -- after the Bank of England and the Federal Reserve already embarked down that road.
