US stocks Wednesday climbed to near the peak of the year after Dubai's debt restructuring plan. The market was also supported by the optimism about the upcoming holiday shopping season while retailers Staples and Guess saw positive earnings in third quarter and provided guidance above market expectations.
US market was closed for Thanksgiving Day holiday, but the overseas markets were strongly hit by fears of a debt default by Dubai World, Dubai government's key holding company. Dubai World, which owns strategic global assets, has asked bondholders for a standstill on about US$60 billion in debt until May.
Asian markets were mixed on Wednesday with a flat lead from Wall Street. Tokyo stocks rebounded on upbeat trade figures and bargain hunting after the market opened lower in the morning. Hong Kong and Seoul share declined as investors the U.S. economy did not grow as quickly as previously forecast in the latest quarter.
Wall Street broke its winning streak and closed lower overnight after a disappointing report showed US housing starts fell 10.6 per cent in October and permits fell 4.0 per cent. The tumble suggested that the real estate sector is still under pressure.
Asian markets received a strong lead from Wall Street and mostly opened higher this morning. But gains were trimmed in Tokyo share market after a stronger yen weighed on Japanese exporters. Meanwhile, concerns over companies' massive capital raising plans continue to dent the local sentiment.
Asian stock markets were broadly lower Friday following the weakness in Wall Street. Chinese shares also fell on profit taking, but airline equities rose across the board on a new pricing mechanism of fuel surcharge to take effect this weekend.
Wall Street maintained its positive run on Wednesday session as the Federal Reserve officials tipped that the central bank could keep interest rate at historical low level. The Chinese economic data released yesterday also added confidence to global recovery hopes. European markets also rallied on low interest rate expectations.
