By Mia Lamar
International companies trading in New York closed higher Wednesday after China's new leadership signaled it will maintain accomodative policies to support the world's second-largest economy.
The Bank of New York index of ADRs rose 0.5% to 128.89. Resource firms, which generally rise on any growth indications from China, were among the biggest gainers.
Anglo-Australian mining giant Rio Tinto PLC (RIO, RIO.AU, RIO.LN) climbed 3.2% to $51.88. Brazil's Vale (VALE, VALE5.BR, VALE3.BR)--a big exporter to China--gained 3.5% to $17.77.
China's new generation of leaders led by party chief Xi Jinping said Tuesday that urbanization and the construction of public housing in the country would be stepped up.
The Communist Party's powerful 25-member Politburo also said that China's economy is stabilizing but "faces various challenges that should not be underestimated" next year, according to state-run Xinhua News Agency. Beijing will fine-tune economic policies at "an appropriate time and in an appropriate way," Xinhua said, without giving further details.
The European index rose 0.4% to 123.49.
Shares of Nokia Corp. (NOK, NOK1V.HE) put in a strong performance, surging 13% to $3.88 after the Finnish mobile-phone maker said it is launching a new Windows-based Lumia handset in partnership with China's biggest operator, China Mobile Ltd. (CHL, K3PD.SG, 0941.HK).
Elsewhere, U.K.-based lender HSBC Holdings PLC (HBC, 0005.HK, HSBA.LN) said it is selling its entire stake in Chinese life insurer Ping An Insurance (Group) Co. of China Ltd. (2318.HK, 601318.SH) for $9.39 billion. Shares rose 1.3% to $51.87.
The Asian index rose 0.6% to 122.99.
Energy shares were broadly higher. PetroChina Co. (PTR, 0857.HK), China's largest listed oil company by capacity climbed 2.9% to $136.78. CNOOC Ltd. (CEO, 0883.HK) rose 2.4% to $217.22 and China Petroleum & Chemical Corp. (SNP, 0386.HK) gained 2.3% to $108.84.
The Latin American index rose 1.3% to 312.63 and the emerging markets index gained 1.1% to 276.16.
Potentially good news out of China helped Brazilian shares. China is Brazil's biggest trading partner and a big consumer of the South American country's commodities exports.
Pulp producer Fibria Celulose SA (FBR, FIBR3.BR) jumped 4.3% to $11.50. Steelmaker Companhia Siderurgica Nacional (SID, CSNA3.BR) gained 3.5% to $5.04.
Write to Mia Lamar at email@example.com