Asia markets advance on Wells Fargo profit report (1) April 10, 2009
Posted by dhirendra1972 in Better Expectations, Better Performance, Crippling Recession, Financial Sector, Holiday-thinned Trade, Hugely Positive Profit, Mega Lenders.Tags: Asian Stocks, Bank Bailout Plan, Banking Giant, Capital Position, Earnings, Financial Industry, Funds, Global Investment, HIgh-Profile Banks, Investors, Lenders, New Shares, Positive Profit, Recession, Shore Up, Wells Fargo and Co.
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Good morning friends. I was reading a good marketing article. Asian stocks were mostly higher in holiday-thinned trade Friday after surprisingly upbeat earnings in the US, but Japanese banks tumbled on fresh worries about their balance sheets amid the country’s crippling recession.
Japan’s mega lenders got pummeled after Sumitomo Mitsui Financial Group warned investors that it sank into the red in the just-ended fiscal year. To shore up its capital position, the country’s No 3 bank said it was moving to issue new shares.
The news contrasted sharply with financials in the US, where stocks surged overnight after Wells Fargo & Co surprised the market with a hugely positive profit report. The banking giant, the recipient of some $25 billion in funds as part of the government’s bank bailout plan, said it expected to post first-quarter earnings of $3 billion, far above analyst forecasts.
With a number of high-profile banks set to unveil their first quarter earnings next week, investors were relieved by the report and took it as a sign that troubles in the country’s ailing financial industry may be nearing an end.
“The performance was better than expectations so everyone is thinking the financial sector is getting better,” said Christian Jin, who helps oversee $1.2 billion in assets as head of global investment at CJ Asset Management in Seoul. “A lot of people were worried about next week’s earnings, but with the report investors are thinking there will be no problems with the financial companies.”
