ADRs rise as financials extend rally
NEW YORK (Reuters) - Overseas shares traded in the United States gained on Monday as Bank of America, the largest U.S. retail bank and mortgage lender, reported a smaller-than-expected drop in quarterly profit that extended a rally in bank stocks.
The Bank of New York Mellon's index of leading American Depositary Receipts (ADRs) .BKADR rose 0.5 percent while the 30-share Dow Jones industrial average .DJI fell 0.5 percent. In the U.S. stock market, a drop in drug stocks offset the positive news in the banking sector.
Signs of possible stabilization in the financial sector emerged as Bank of America Corp(BAC.N) became the fourth of the five largest U.S. banks to top quarterly earnings forecasts, joining Citigroup Inc (C.N), JPMorgan Chase & Co (JPM.N) and Wells Fargo & Co (WFC.N).
U.S.-traded shares in the Bank of Ireland (IRE.N) jumped 5.2 percent to $37.36 and those in Seoul-based Kookmin Bank (KB.N) gained 4.2 percent to $55.93, both on the New York Stock Exchange.
The Bank of New York Mellon's index of leading European ADRs .BKEUR added 0.4 percent. In Europe, the FTSEurofirst 300 .FTEU3 index of top European shares edged up 0.5 percent after an intraday rise of 1.1 percent soon after Bank of America posted its results.
The Bank of New York Mellon's index of leading Asian ADRs .BKAS rose 0.6 percent. In Asia, stocks also rose on good news from the U.S. banking sector. The MSCI index of Asia-Pacific shares outside of Japan .MIAPJ0000PUS was up 3.2 percent for the day, the biggest single-day gain since March 25.
The Bank of New York Mellon's index of leading Latin American ADRs .BKLA advanced 0.9 percent.
Major stock benchmarks in Latin America were higher as Sao Paulo's main Bovespa index .BVSP rose 1.1 percent, led by miner Vale and state-controlled energy company Petrobras.
Vale's ADRs RIO.N rose 1.1 percent to $29.43 and Petrobras' (PBR.N) shot up 1.7 percent to $59.07, both on the NYSE.
(Additional reporting by Jonathan Stempel in New York and Kevin Plumberg in Hong Kong; Editing by Jan Paschal)
