Snapping the three-day losses, most Asian stocks rose today. Earlier yesterday, U.S. stocks rose to a significant level and sent the Dow Jones Industrial Average to its first close above 16,000. The better performance of the U.S. stock market is attributed to the data that showed an improvement in the job market.
Additionally, the U.S. stock market got a boost from the decisions by the companies like Union Pacific Corp., Johnson Controls Inc. and Ace Ltd. These companies decided to repurchase shares which helped their stocks rise to an extent. The three companies Union Pacific, Johnson Controls and Ace advanced at least 1.4 percent in the day’s trading.
Whereas Micron Technology Inc. gained 6.3 percent, General Motors Co. (GM) gained a marginal 1.1 percent. The slight gain by GM is due to a decision by the U.S. Treasury Department to sell its remaining stake in the company. However, Target Corp. (TGT) could not follow the trend and lost 3.5 percent as its profits could not meet the estimates.
Another major gainer was Green Mountain Coffee Roasters Inc. (GMCR) whose stocks jumped 14 percent to $70.57. Similarly, following the trend Williams-Sonoma Inc. also gained 7.6 percent to $59.74 when the company that retails home accessories raised its profit forecast. However, Dollar Tree Inc. (DLTR) could not maintain the momentum and fell 4.5 percent to $56.28.
Major indexes too gained yesterday; erasing the losses suffered in the last three days, the Standard & Poor’s 500 Index increased 0.8 percent to 1,795.85 at 4 p.m. in New York. Following the trend even the Dow average rose 109.17 points, or 0.7 percent, to a record 16,009.60 amidst the labor report indicated better performance.
Asian Stock Market
Asian market opened with positive indications; the MSCI Asia Pacific Index added 0.2 percent to 141.35 as of 2:12 p.m. in Hong Kong. According to market observers the Hong Kong market is still relatively strong where the main focus in the last few days has been coal prices in China and financial reforms.
On a better trading day, the Hang Seng China Enterprises Index climbed 0.8 percent and mainland equities traded in Hong Kong are headed for a 6.8 percent increase this week which according to market observers is the largest weekly gain in two years.
Whereas Hong Kong’s Hang Seng Index gained 0.4 percent, China’s Shanghai Composite Index could not maintain the trend and lost 0.6 percent.
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