Market Report – Asian Banks Up

Asian stock markets reacted to a slew of corporate earnings reports… with Japanese bank Mitsubishi UFJ gaining after its first profit in three quarters.

Mitsubishi UFJ shares jumped it said April-June group net profit totalled nearly $800 million.

Mizuho Financial climbed as well, after Morgan Stanley raised its rating on Japan’s No. 2 bank to „overweight“ from „underweight“ despite the bank’s posting its fourth straight quarter in the red.

But despite the better financial sector performance, Japanese wage earners‘ total cash earnings tumbled over 7 percent in the year to June, the biggest annual drop on record. It’s likely to hurt consumer spending.

In Australia, a private measure of manufacturing climbed to its highest in 10 months in July, as new orders and production improved, although overall activity was still down.

Over the weekend the nation’s treasurer said that a rate rise from current historic lows would be „obvious“, but Sydney banking shares rose after Goldman Sachs hiked its rating on the sector.

(NTDTV)