Asian shares gain on upbeat investor sentiment
31 Jan 2013
Asian shares advanced yesterday with the strengthening of investor confidence in the global economic outlook on solid US data, comforting investors ahead of the US Federal Reserve's monetary policy decision due later in the session.
Optimism over economic recovery from strong US housing data as also promising economic growth forecast for China in 2013 increased expectations for robust demand for fuel and industrial commodities, underpinning oil prices and lifting copper.
European markets were seeing a pause following two-year highs, with projections of financial spreadbetters London's FTSE 100 , Paris's CAC-40 and Frankfurt's DAX nearly flat.
The MSCI's broadest index of Asia-Pacific shares outside Japan was up to 0.4 per cent, after rising to a near 18-month high, adding to the per cent rally of the previous day. The energy sector led the gains with a 1 per cent rise.
London copper added 0.5 per cent to $8,146.50 a tonne after hitting $8,159, its highest since 11 January, while US crude oil was steady around $97.56 a barrel after increasing over 1 per cent on Tuesday on expectations of higher demand. Brent moved up 0.1 per cent to $114.45.
Meanwhile Japan's industrial production increased less than economists forecast, suggesting that a recovery in the nation's manufacturing sector was lagging a weakening yen.
