French debt sale helps Asian stocks rise

Shares jumped in Asia as traders and those learning how to trade reacted positively to the news that borrowing costs had fallen in France, and speculation increased that China would ease lending curbs to stimulate the economy.

The MSCI Asia Pacific Index jumped two per cent to 117.91 with more than eight stocks rising for every one that fell, reports Bloomberg.

In Japan, the Nikkei 225 gauge moved up by 1.1 per cent and South Korea's Kospi Index leapt 1.8 per cent as Asian markets responded positively to the French debt auction.

Andrew Pease, Sydney-based chief investment strategist for the Asia-Pacific region at Russell Investment Group, said markets were taking a positive view on the eurozone and the amount of liquidity coming from the European Central Bank.

"Anecdotally, we are hearing China's senior leadership is very, very concerned about the outlook in Europe, which tells you the bias is to ease policy more than they have already," added Mr Pease.

Reuters reported yesterday that Asian and European shares had increased in value after positive economic data from China showed its gross domestic product had expanded.

Posted by Clive Arneil