MANILA, Philippines - Global stock markets rose Wednesday as jitters about emerging economies were soothed by the Turkish central bank's aggressive interest rate hike to stabilize its currency and China's infusion of funds into its banking system.
In early European trading, major
benchmarks were all up. Britain's FTSE 100 rose 0.9 percent to 6,632.47.
Germany's DAX climbed 1.1 percent to 9,508.92 while France's CAC-40 was up 1.1
percent at 4,230.52. Futures augured a higher opening on Wall Street. Dow Jones
futures rose 0.5 percent to 15,949 and S&P 500 futures climbed 0.6 percent
Global stock markets have stabilized
after three turbulent days when investors grew worried about growth in China
and other developing nations that have become a significant portion of the
world economic pie.
The sell-off began last Thursday, when
a survey for January showed that Chinese manufacturing was set to contract,
dragging down stocks in Asia, Europe and the U.S. The slide continued on Friday
as currencies in countries including Argentina and Turkey slumped. On Monday,
Asian markets dropped, although the selling on Wall Street eased.
By Tuesday, though, global markets
regained some calm. In the U.S., earnings gains from big companies, including
Pfizer, Comcast and D.R. Horton helped lift stock indexes. One area of
disappointment, though, was Apple, whose weak revenue forecast pushed its stock
to the biggest one-day loss in a year.
Japan's Nikkei 225 jumped 2.7 percent,
closing at 15,383.91 and Hong Kong's Hang Seng rose 0.8 percent to 22,141.61.
China's Shanghai Composite was up 0.6 percent at 2,049.91.
South Korea's Kospi added 1.3 percent
to 1,941.15. Indonesia's benchmark climbed 1.7 percent to 4,417.35.
"The emerging market story was
once again the main driver of price action through Asian trade with Turkey at
the forefront of market activity," said Stan Shamu, market strategist at
IG in Melbourne, Australia.
Turkey's central bank hiked its
overnight lending rate to 12 percent from 7.75 percent and overnight borrowing
rate to 8 percent from 3.5 percent to stabilize the Turkish lira and keep
inflation under control.
Investors continued to watch for more
central bank action ahead of the weekend, including in the U.S., South Africa
and New Zealand, he said.
Jackson Wong, vice president of
Tanrich Securities in Hong Kong said the Hong Kong market continued its rebound
following Monday's big sell off. The Chinese central bank's injection of more
funds into the banking system boosted sentiment in China's banks, he said.
"We are seeing a strong recovery
in this sector and its bringing up the whole market," Wong said.
Benchmark oil for March delivery was down 43 cents to $96.99 per barrel in electronic trading on the New York Mercantile Exchange. The contract gained $1.69 to settle at $97.41 a barrel on Tuesday.
In currencies, the euro rose to
$1.3677 from $1.3653 late Tuesday. The dollar fell to 102.99 yen from 103.19