Wall Street Rally Lifts Overseas Stock Markets

Stocks rose overseas Thursday, with Japan’s main index hitting a two-month high, as investors grew hopeful that economic growth will speed up in the months ahead.

Analysts said many markets got a lift from Wall Street’s big rally Wednesday, when the Dow Jones industrial average surged 255.26 points to 8,931.68, posting its best-ever day before Thanksgiving.

European investors also were encouraged by data showing a jump in French manufacturing confidence.

U.S. markets were closed for the Thanksgiving holiday. They will reopen today, but for a shortened session that will end at 10 a.m. PST.

In Japan, the benchmark 225-issue Nikkei stock index rocketed 300.90 points, or 3.4%, to 9,176.78. It was the Nikkei’s highest close since Sept. 30, when it was at 9,383.29.

Technology and other export-dependent blue-chip issues led the market’s advance. Advantest and Kyocera were among the day’s biggest gainers, and Sony, NEC, Fujitsu, Hitachi, Toshiba, and automakers Toyota and Honda also finished higher.

Traders said in addition to Wall Street’s gain Wednesday -- which followed a raft of encouraging economic data -- Japanese investors took heart from reports that an economic plan expected from Japan’s government today will inject public funds into the nation’s struggling banks.

The banks are saddled with massive bad loans at a time when many corporate borrowers are struggling.

Elsewhere in Asia, Hong Kong’s Hang Seng index jumped 203.25 points, or 2%, to 10,147.84.

South Korean stocks climbed on heavy buying by foreign investors. The composite index rose 6.47 points, or 0.9%, to 714.54.

Australian shares posted strong gains, led by mining companies, amid hopes that a stronger U.S. economy will boost demand for Australian commodities. The All Ordinaries index surged 39 points, or 1.3%, to 3,007.20.

But Taiwanese shares closed slightly lower amid uncertainties over the stance taken by the newly appointed finance minister toward tax policy. The benchmark index dipped 20.43 points, or 0.4%, to 4,612.60.

In European trading, the CAC 40 index, the benchmark for French stocks, added 16.23 points, or 0.5%, to 3,329.99, after a survey of 2,000 companies showed that manufacturers’ confidence grew in November for the first time six months, according to Bloomberg News.

In Britain, the FTSE-100 index jumped 41.20 points, or 1%, to 4,185.40.

Germany’s DAX index gained 14.62 points, or 0.4%, to 3,360.76, its advance muted somewhat after Munich Re, the world’s largest reinsurer, reported a large third-quarter loss.

In Canada, the Toronto Stock Exchange 300 index rallied 30.01 points, or 0.5%, to 6,634.26.

In Mexico, stocks were mostly flat in thin trading after the IPC index surged 3.5% on Wednesday, tracking Wall Street’s gains.

Most major markets worldwide would have to rally dramatically between now and Dec. 31 to erase their year-to-date losses.