Emerging Mkts ADRs: Asian Stocks Rally; China Telecom Up 10%
Dow Jones Newswires
NEW YORK -- Emerging market shares trading as American depositary
receipts are rallying furiously Friday, as good news emerged from key
markets whose troubles have pounded stocks world-wide for the better
part of the year.
While Russian stocks - closely watched by market participants in Latin
America - soared 13.7% Friday boosted by hopes for an international
financial aid package, shares closed higher in most Asian countries.
Market participants said that aiding Friday's cheerful market mood is the
relative stability in the yen, after Japanese authorities hinted at an
intervention to defend the beleaguered currency. At 1425 GMT, the yen
was quoted at Y145.37 per dollar.
Trading in Hong Kong and Chinese shares also was boosted by short
covering after the territory's monetary authority's intervention Friday to
support the exchange rate, which included buying blue-chip stocks, market
sources said.
"Hong Kong is up because of the intervention," a trader said. "There's a lot
of government money coming in, and it's probably going to keep the
market firm for a week or so."
"Hong Kong is looking pretty good," another trader said. "Hong Kong
(shares) were up 8% and bonds are rallying a little bit, so everybody's
happy." At 1435 GMT, Hong Kong Telecom rose 7.6% to $17 11/16.
Meanwhile, China Telecom was also rallying, on the back of an approval
to reduce its public float to 18% from 23.5%. At 1440 GMT the ADR
rose 10% to $27 1/4, after closing up 16% in local trading.
"It's definitely positive," a dealer said. "It's non-dilutionary, and if the
company announces that the stock is cheap and they're going to buy back,
it's good." |
