Commodity prices push Asian markets higher; China inflation number still high – City Index Market Update
Spread betting provider City Index (http://www.cityindex.co.uk/) takes a look at the activity shaping the Asian spread betting markets on 11th May 2011.
Asian markets were trading higher today with the Japanese Nikkei and the Hong Kong Hang Seng indices both up around 0.3% in early trading. Most Asian markets were taking the lead from the US where commodity prices saw some rally overnight.
In Japan, stocks gained for a second straight day after the Yen weakened and companies said the outlook for earnings has improved, boosting confidence about the global economic recovery.
Toyota Motor Corp and other automakers gained after Goldman Sachs Group Inc said the supply of parts is improving following the March 11 earthquake. NEC Corp, Japan's No. 1 maker of telecom equipment, jumped 5.3% after forecasting a return to profit.
In Hong Kong, stocks swung between losses and gains as developers fell after a report showed inflation in China exceeded the government's target, while commodity stocks gained on higher crude and metal prices. China Resources Land Ltd, a state-controlled developer, sank 0.4% while Guangzhou R&F Properties Co, the biggest real-estate company in the Southern Chinese city, slid 1.3%.
In Australia, the sharemarket closed higher on the back of mining and resources stocks which were pushed up by a rise in commodity prices. The Aussie dollar was holding some support at the 1.0800 level against the US dollar.
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Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.