Japan stocks extended a record rally from a 26-year low on
speculation U.S. president-elect Barack Obama will take additional
steps to spur economic growth and as a rise in commodities prices
sparked gains by resource companies.
Honda Motor Co. climbed 13
percent on speculation U.S. lawmakers may push for more policies to
boost the economy. Inpex Holdings Inc. and Japan Petroleum Exploration
Co., the nation's biggest oil explorers, jumped more than 12 percent
after crude rose the most in six weeks. Mizuho Financial Group Inc.,
Japan's No. 2 listed bank, gained 16 percent as tumbling money market
rates indicated credit is easing. Sumitomo Heavy Industries Ltd. soared
the most in 22 years after profit exceeded its forecast.
The Nikkei
225 Stock Average rose 406.64, or 4.5 percent, to close at 9,521.24 in
Tokyo. The gauge has rebounded 33 percent from a 26-year low on Oct.
27, its best six-day gain according to available data back to 1970. The
broader Topix index surged 56.21, or 6.2 percent, to 966.91, its
third-largest advance this year.
European stocks
retreated for the first time in seven days after disappointing earnings
overshadowed speculation that Barack Obama will boost the U.S. economy
with a stimulus package.
ArcelorMittal, the biggest steelmaker,
slumped 15 percent after saying it will double production cuts. BNP
Paribas SA dropped 1.5 percent as third-quarter profit at France's
largest bank missed analysts' estimates. Carlsberg A/S, the Nordic
region's biggest brewer, declined 5.3 percent after lowering its
full-year earnings and sales forecasts.
Europe's Dow Jones Stoxx 600
Index lost 2.3 percent to 228.13 in London. Companies from
ArcelorMittal and BNP Paribas to Nokia Oyj and BASF SE have reported
earnings that fell short of expectations as economic growth slows.
Earnings
for the 924 companies in western Europe that reported results since
Oct. 7 declined 4.9 percent on average, trailing expectations by 3.6
percent.