ADR Report-ADRs rise after stress test results boost optimism
NEW YORK, May 8 (Reuters)- Overseas shares traded in the United States rose on Friday after the government's stress test results on big U.S. banks increased optimism over the health of the financial sector, sending share prices higher.
The Bank of New York Mellon's index of leading American Depositary Receipts (ADRs) .BKADR rose 3.8 percent to 109.31 while the U.S. benchmark S&P 500 index .SPX was up 1.7 percent to 923.34. In addition to bank optimism, sentiment in the United States was lifted after data showed that employers shed fewer-than-expected jobs in April. [ID:nN08480299]
The Bank of New York Mellon's index of leading Asian ADRs .BKAS rose 3.2 percent to 109.93 on Friday. In Asia, shares largely ended higher, with China's Shanghai composite index posting its best weekly gain in seven weeks and Japan's Nikkei hitting a six-month closing high on strength in banking shares.
Among Korean ADRs, financial stocks were strong performers. KB Financial (KB.N) rose 3.1 percent to $37.62 while Woori Finance (WF.N) rose 7.9 percent to $28.47.
One of the biggest stories among Asian ADRs was Toyota Motor (TM.N), forecasting a larger-than-expected annual loss. [ID:nN08463367] It's stock fell 1.4 percent to $79.03 on the New York Stock Exchange.
The Bank of New York Mellon's index of leading European ADRs .BKEUR advanced 4.2 percent to 101.29 while the FTSEurofirst 300 .FTEU3 index of top shares ended up 1.7 percent to 865.89, led by strength in financials and energy stocks. [ID:nL81021909]
Bank stocks performed strongly among European ADRs. Barclays Plc (BCS.N) surged 9.8 percent to $17.73, the Royal Bank of Scotland (RBS.N) soared 19 percent to $14.88 and HSBC Holding (HBC.N) gained 7.7 percent to 44.18. Lloyd's Banking Group (LYG.N) added 8.2 percent to $6.21.
Receipts with the Bank of New York Mellon's index of leading Latin American ADRs .BKLA rose 2.3 percent to 270.63. In Latin America, shared ended higher, with Brazil's Bovespa index .BVSP up 1.2 percent spurred by the global rally in equities and Citigroup's recommendation of the country's stock market, which was raised to overweight from neutral. [ID:nN08462650]
Financial stocks also were strong among Latin American ADRs. Argentina's, BBVA Banco Frances (BFR.N) soared 7.8 percent to $3.58 while Columbia's BanColombia (CIB.N) was up 4.5 percent to $27.67 and Brazil's Banco Bradesco (BBD.N) rose 3 percent to $13.80. (Reporting by Ryan Vlastelica; Editing by Theodore d'Afflisio)
