Asian stocks advance strongly

Most of the indices end in green on buying in resources

The Asian stocks rose today as strong overnight US cues and continued buying interest in metals and resources stocks proved instrumental. The Reserve Bank of Australia raised interest rates by 0.25 %age points as recent economic data suggested that that the risk of a serious economic contraction has passed, and that Australia's economic growth is back to normal. That took the official cash rate target to 4.25 per cent. However, the US dollar stayed upbeat, eroding some gains for the equities, as a section of the market focused on media reports stating that Greece wants to amend its aid deal with the European Union to bypass the International Monetary Fund.

The Aussie stocks snapped an 18-month high following the central bank's decision. The All Ordinaries gained 48 points to 4,974, and the ASX 200 closed 46 points higher at 4,954. The New Zealand stocks gained for a third straight session, boosted by a rally in heavyweight Telecom and solid domestic economic data.

Business Optimism in New Zealand increased in March, according to the latest survey results from the New Zealand Institute of Economic Research. The group's quarterly business opinion survey, released Tuesday, showed a seasonally adjusted net 36 % of firms expecting improved conditions over the coming six months, compared to 23 % feeling that way for the December quarter. The NZX 50 average rose 33 points or 1% to close at a three-month high of 3,309. Within the index, 23 stocks gained, 15 declined while 12 others closed unchanged.

The Chinese market closed flat after a long weekend flat though the raw-material producers fared well on speculation improving recovery prospects will boost demand for commodities. The Shanghai Composite average closed at 3,159, almost unchanged on the day.

Japanese shares dropped though, ending a three session losing winning streak, as investors locked in profits following recent strong gains. The benchmark Nikkei fell 57 points or 0.5% to 11,282, while the broader Topix index of all first section issues on the Tokyo Stock Exchange ended down 5 points or 0.49% at 991.

On Wall Street yesterday, stocks spurted as the markets reacted positively to the strongest jobs report in three years along with better than expected news from the housing and service sectors. The Dow Jones Industrial Average rose 0.4% to 10973.55, its highest close since Sept. 26, 2008. The Standard & Poor's 500 advanced 0.8% to 1187.44, its highest close since the same date, and its biggest one-day gain since March 5. The sentiment was buoyed by a better-than-expected reading from the Institute for Supply Management's non-manufacturing index, which showed broad improvement in service-sector businesses in March.

In Mumbai, key benchmark indices were little changed at close after moving between positive and negative zone in intraday trade. The BSE Sensex and the S&P CNX Nifty retraced after striking fresh 25-month highs in intra-day trade. The BSE Sensex pared gains after coming within a striking distance of the psychological 18,000 mark. European stocks were trading higher while Asian stocks ended on a mixed note. The Sensex was up 14.81 points or 0.08%, up 52.49 points from the day's low and off 40.92 points from the day's high.

In other markets, Korean stocks surged on strong advances in the other markets in early moves but pared gains later on. The benchmark KOSPI rose 1 point or 0.06% to close at 1,726. The markets in Hong Kong and Thailand were shut for holidays.

In commodities, strengthening dollar exerted some selling pressure on the prices in the later part of the day. The front month Nymex May crude oil futures contract came off a high near $87 and currently trades at $86.66, up 6 cents on the day on Globex. The Gold prices slipped as the expiry of the April counter took a toll. The June futures were last seen hovering at $1126, down $7.8 per ounce from the previous close.