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Asian, European Markets See Gains in Sessions on U.S. Holiday

Posted on: Tuesday, 6 September 2005, 15:00 CDT

LONDON -- Stock markets rose Monday across Europe as lower oil prices pushed automaker and transport companies higher, while European clothing retailers benefited from an EU deal that will free- up Chinese textile imports. In Asia, the Japanese market bucked a generally lower trend to close on a four-year high.

U.S. markets were closed Monday because of the country's Labor Day holiday.

In London, the FTSE 100 was up 0.2 percent to close at 5,338 points, while in Frankfurt, the DAX Index rose 6.4 percent, or 0.1 percent, to 4,623.51. Paris' CAC-40 rose 1.5 percent to 4,909.89.

A decline in Brent crude-oil prices to its lowest level since Hurricane Katrina hit the U.S. Gulf coast provided a boost for many stocks, particularly car makers and transport.

October-dated Brent crude-oil futures fell to $64.68 a barrel in London, from $66.02 on Friday, after the International Energy Agency said late Friday that it is going to make available 2 million barrels a day of oil for at least 30 days. The Nymex light sweet crude-oil contract was not trading Monday.

In Germany, Volkswagen, which said it is more aggressively looking to cut jobs because it is overstaffed by "several thousand," rose 3 percent. DaimlerChrysler picked up 2.4 percent and BMW 1.7 percent.

Energy companies were the losers from the lower oil price. BP PLC, Europe's biggest oil producer fell 0.8 percent while Total SA slipped 0.3 percent.

Clothing retailers were stronger as the European Union and China agreed a deal that will unblock Chinese textile imports held at European borders. The deal, which still requires approval by the 25- nation EU, would release about 75 million Chinese-made sweaters and other garments held at European ports after they reached import limits agreed to in June by China and the European Union.

Shares in clothing retailer Hennes and Mauritz finished up 0.6 percent.

In Switzerland, Julius Baer closed down 5.7 percent after it agreed to buy the Ehinger & Armand von Ernst, Ferrier Lullin & Cie. SA and Banco di Lugano private banks, and its GAM asset management unit, from UBS for 5.6 billion Swiss francs ($4.6 billion).

Shares in UBS, which expects to record a pretax gain of at least 3.5 billion Swiss francs ($2.8 billion) from the transaction,closed up 0.6 percent .

In London, Scottish Power hit a new 52-week high on Monday on a further report that Germany's E.ON is looking to buy the company. Scottish Power shares closed up 4.1 percent.

In Madrid, Gas Natural SDG SA, Spain's biggest gas company, and Endesa SA, the nations largest power company were suspended from trade. Endesa added 2.9 percent and Gas Natural gained 1.1 percent to before trade was halted in the shares. Investors speculated Endesa may receive a takeover bid from Gas Natural.

In Asia, most markets closed lower, but Japan went against the trend, closing at a four-year high on positive data showing an increase in capital spending.

Tokyo's Nikkei 225 Index gained 34.88 points, or 0.28 percent, to close at 12,634.88, marking its highest close since July 3, 2001.

Steel stocks like Nippon Steel Corp. and Sumitomo Metal Industries, Ltd. gained on new data showing that Japan's capital spending increased 7.3 percent on year in the April-June quarter.

Stocks with close ties to the domestic economy, such as construction company Taisei Corp. and Mitsubishi Tokyo Financial Group Inc., also gained.

In Hong Kong, stocks ended flat, with gains in property stocks ahead of a land auction later this month offsetting losses in export- focused shoemaker Yue Yuen (Industrial) Holdings Ltd.

The blue-chip Hang Seng Index rose 5.94 points, or 0.04 percent, to 15,227.83.

In Sydney, Australian shares lost ground as telecommunications group Telstra suffered from a profit warning and mining company BHP Billiton went ex-dividend. The benchmark S&P/ASX 200 index fell 18.3 points, or 0.4 percent, to 4,455.4.

China's shares ended higher for a fourth straight session on optimism over share reform after the country's securities regulator issued rules outlining how listed companies should float nontradable shares. The benchmark Shanghai Composite Index ended up 0.6 percent at 1,196.22.

Source: Deseret News (Salt Lake City)

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