By Mia Lamar
International companies trading in New York closed sharply
higher Tuesday after bond yields in crisis-hit Spain and Italy
eased and investors anticipated signals of support from a Federal
Reserve policy meeting Wednesday.
The Bank of New York index of ADRs rose 2.1% to 118.59 as
financial stocks landed solidly in the green, reversing Monday's
declines.
Good demand in Spain's auction of 12- and 18-month Treasury
bills encouraged investors. The yield on the 10-year government
bond fell just below the critical 7%, well off the euro-era high of
7.17% reached Monday.
Spanish bank shares ended the New York session markedly higher.
Banco Bilbao Vizcaya Argentaria (BBVA, BBVA.MC) gained 3.5% to
$6.53 while Banco Santander (SAN, SAN.MC) rose 3.2% to $6.06.
The European index jumped 2.2% to 109.56.
Elsewhere in the region, shares of Dutch life insurance and
pension company Aegon NV (AEG, AGN.AE) climbed 5% to end at $4.46.
Chief Executive Alex Wynaendts told Dow Jones Newswires Tuesday the
company plans to reduce its exposure to Spain and exit some
joint-ventures there on expectations that the country's economy
could struggle for years to come.
The Asian index rose 1.2% to 117.43 as resource stocks ended
higher on gains in metals markets. Copper climbed 1.1% Tuesday on
hopes of new economic stimulus from the Federal Reserve that could
be a boon for copper prices. Australia's Rio Tinto Plc (RIO,
RIO.AU)--a major copper miner--jumped 2.5% to $48.05.
The Latin American index rose 3.3% to 320.44 while the emerging
markets index jumped 2.2% to 273.35. South America's major banks
drew strength from their peers overseas, leaving Argentina's Banco
Macro SA (BMA, BMA.BA) to end 3.9% higher at $12.47 and Brazil's
Itau Unibanco Holding (ITUB, ITUB3.BR) to jump 3.7% to $15.06.
-Write to Mia Lamar at mia.lamar@dowjones.com