ADR REPORT-Foreign shares rebound with US earnings season start
NEW YORK |
NEW YORK Jan 9 (Reuters) - U.S.-listed shares of foreign companies rose on Wednesday, rebounding from a two-day decline following a strong start to the U.S. earnings season.
Solar power companies rallied after China said it would more than double its installed solar power capacity this year from 2012.
Alcoa Inc reported an adjusted fourth-quarter profit that met expectations and said it was cautiously optimistic that demand for aluminum would continue to grow in 2013.
Investors have been concerned that the recent impasse over the U.S. fiscal cliff and signs of slowing economic growth would weigh on earnings this season, resulting in anemic growth. Alcoa, as the first Dow component to report, is seen as starting the season with a positive tone.
Cyclical shares, which are closely tied to the pace of economic growth, advanced. Aluminum China gained 1.1 percent to $12.40.
The BNY Mellon index of leading Asian ADRs jumped 1.1 percent, outpacing the 0.5 percent rise in the BNY Mellon index of leading American depositary receipts. The S&P 500 rose 0.4 percent.
Solar companies in Asia were among the day's strongest performers day after the Chinese government's announcement on a more than doubling of installed solar power capacity.
China Sunrgy climbed 4.5 percent to $1.64 while JA Solar soared 11 percent to $5.70. LDK Solar Co jumped 8.7 percent to $2.24.
The BNY Mellon index of leading European ADRs rose 0.4 percent as the FTSEurofirst 300 index of top shares closed up 0.7 percent, hitting a 22-month closing high on a bullish start to the earnings season.
The BNY Mellon index of leading Latin American ADRs rose 0.5 percent.
Among the most active foreign shares traded on U.S. exchanges, Tata Motors Ltd rose 5.9 percent to $30.38 after Credit Suisse and CLSA upgraded their ratings on the automaker's stock, citing expectations for improving sales. The company's India-listed shares hit a record high.
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