World stocks up as Apple result lifts tech shares

  World stocks rose on Wednesday as investors stayed calm in the face of a possible debt default by Greece to search for good deals in technology shares boosted by stunning results from Apple.

Benchmark crude rose to nearly $99 per barrel while the dollar rose against the yen but fell against the euro.

European shares followed their Asian counterparts higher. Britain’s FTSE 100 rose 0.4 per cent to 5,774.31. Germany’s DAX climbed 0.5 per cent to 6,448.33 and France’s CAC-40 added 0.4 per cent at 3,334.50.

After a session of slight losses on Tuesday, Wall Street appeared headed for a higher opening. Dow Jones industrial futures rose 0.1 per cent to 12,644 while S&P 500 futures added 0.2 per cent to 1,314.40.

Asian stocks posted solid gains. The Nikkei 225 index in Tokyo rose 1.1 per cent to close at 8,883.69. South Korea’s Kospi gained 0.1 per cent to 1,952.23 and Australia’s S&P/ASX 200 added 1.1 per cent to 4,271.30. Markets in Hong Kong, mainland China and Taiwan remained closed for Chinese New Year.

Japan’s powerhouse export sector got a lift from a moderation in the yen’s strength even as the country reported its first annual trade deficit since 1980. A strong yen, which hit multiple historic highs last year against the dollar, shrinks the value of overseas earnings when repatriated and makes Japanese products less competitive.

Honda Motor surged 3.8 per cent. Mitsubishi Motor jumped 4.4 per cent and Sony added 4.8 per cent. Tire-maker Bridgestone added 4.2 per cent.

Technology stocks were elevated after Apple reported earnings that sailed past analyst estimates. Apple said late Tuesday said it sold 37 million iPhones in the last three months of 2011, vastly exceeding estimates and propelling the company to record quarterly results.

That stellar performance reverberated throughout the global tech industry. South Korea’s LG Electronics, which ranks No. 2 globally in flat screen televisions, jumped 4.1 per cent. Hynix Semiconductor, the world’s second-largest memory chip maker, added 1.9 per cent.

In Australia, shares in Lynas soared 5.1 per cent after the company said it had secured the funding necessary to complete construction and start-up at its rare earths processing plant in Malaysia.

Benchmark oil for March delivery rose 8 cents to $99.03 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 63 cents to end at $98.95 per barrel on the Nymex on Tuesday.

In currency trading, the euro rose to $1.3031 from $1.3021 late Tuesday in New York. The dollar rose to 77.98 yen from 77.73 yen.

DB Realty, Unitech, RCom shares jump after bail for top executives in 2G case

The Supreme Court today granted bail to five corporates arrested in the 2G scam. Those granted bails include Sanjay Chandra of Unitech, Vinod Goenka of Swan Telecom and three officials of Anil Ambani's ADAG-Group.

The Supreme Court's decision acted as sentiment booster for the companies these officials represented. The gains in stocks of these companies came against a sharp selloff in broader markets. Three telecom firms - Reliance Telecom Ltd, Swan Telecom and Unitech (Tamil Nadu) Wireless Ltd - have been named accused in the case.

At 1415 hours, stocks of DB Realty traded 18 per cent higher on the Bombay Stock Exchange. DB Realty stocks have plunged 45 per cent since the arrest of Mr Goenka who is the MD of DB Realty and director of Swan Telecom.

Unitech was trading with 5 per cent gains. Unitech stocks have fallen nearly 50 per cent since the arrest of Mr Chandra who headed Unitech Wireless when he was arrested in the scam seven months ago.

Reliance Communications was trading 2 per cent higher on the BSE. Three officials of Reliance ADAG Group - Gautam Doshi, Surendra Pipara and Hari Nair - will also walk out of Tihar jail shorty. The stock has fallen nearly 34 per cent since the arrest of these executives.

All five corporates have been asked to furnish a surety bond of Rs 5 lakh each. The Central Bureau of Investigation can move the Supreme Court if it feels the bail is misused.

The five accused had moved the apex court challenging the Delhi High Court and trial court orders turning down their bail pleas. The accused, who have been charged under various offences under the Indian Penal Code and Prevention of Corruption Act, contended that they should be granted bail as the charges have already been framed and there is no chance of them tampering with the evidence.

Other accused in the case include former Telecom Minister A Raja, DMK MP Kanimozhi, former Telecom Secretary Siddhartha Behura and Raja's former private secretary R K Chandolia.

Swan Telecom promoter Shahid Usman Balwa, his cousin Asif Balwa and their colleague Rajeev Agarwal have also been booked in the case.

All the accused have pleaded that they have not done anything wrong and refuted the charge of drawing illegal benefits in allocation of 2G spectrum.