By Anna Prior
International companies trading in New York closed higher
Tuesday, as Spain appeared closer to formally requesting financial
aid, Germany released some positive economic data, and U.S.
bellwethers posted strong earnings.
The Bank of New York index of ADRs climbed 1.6% to 128.49. Media
reports late Monday said that Madrid is ready to formally request
financial aid but that officials are delaying an announcement
because of concerns about the effect on other euro-zone
countries.
Meanwhile, Germany's ZEW sentiment indicator showed a rise in
economic expectations, while U.S. companies like Johnson &
Johnson (JNJ) and Goldman Sachs Group Inc. (GS) posted earnings
that beat expectations.
The European index jumped 1.9% to 122.52.
The positive news flow about Spain's potential bailout boosted
risk-sensitive sectors, such as banks. Spain's Banco Bilbao Vizcaya
Argentaria SA (BBVA, BBVA.MC) jumped 6.6% to $8.24, while the
U.K.'s Lloyds Banking Group PLC (LYG, LLOY.LN) rose 5.4% to $2.73,
and France's Credit Agricole SA (CRARY, ACA.FR) rose 6.4% to
$4.14.
U.K.-based ARM Holdings PLC (ARMH, ARM.LN) also added to the
boost, rising 3.3% to $28.95, amid Microsoft Corp.'s (MSFT)
announcement of prices for its Surface Tablet, setting a starting
price of $499 that follows the lead of Apple Inc.'s (AAPL) iPad.
Microsoft's device was designed to run its latest operating system
software, which comes with a new interface that is designed for a
touchscreen. The models of the Surface announced Tuesday run a new
version of the new software called Windows RT, which is designed
for hardware powered by chips based on designs licensed from ARM
Holdings.
The Asian index rose 1.2% to 120.79.
Taiwan-based AU Optronics Corp. (AUO, 2409.TW) shares were
upgraded to buy from sell by CLSA, which cited a fundamental
narrative shift in the display panel sector. The firm credits
strong demand from China as a driver, saying TV panel shipments
were 8% higher than expected, reflecting strong demand in China
ahead of the Golden Week holiday. AU Optronics's U.S.-listed shares
rose 9.7% to $3.95.
Vimicro International Corp. (VIMC), a China-based PC-camera
processor and IP-based surveillance solution provider, said it
received a notice from Nasdaq regarding compliance with the minimum
$1.00-per-share requirement for continued listing. To regain
compliance, Vimicro's American depositary shares must meet or
exceed $1.00 per ADS for a minimum of 10 consecutive business days
during a 180-day grace period. The company said it will consider
available options, including changing the ADS ratio, to regain
compliance. Shares off 6.1% at $1.08.
The Latin American index edged up 0.8% to 331.05, and the
emerging-markets index edged up 0.8% to 283.97.
Shares of Mexico-based cement and building-materials maker Cemex
S.A.B. de C.V. (CX, CEMEX.MX) rose 4.7% to $9.21 a day after the
company said it narrowed its net loss in the third quarter compared
with a year ago on steady sales and an increase in operating cash
flow.
-Write to Anna Prior at anna.prior@dowjones.com