NEW YORK, Sept 13 (Reuters) - U.S.-listed shares of foreign companies advanced on Friday a day after the Federal Reserve stepped in with a new monetary stimulus program designed to boost growth.
The BNY Mellon index of leading American Depositary Receipts rose 1 percent and is up 3.8 percent this week. The S&P 500 rose 0.3 percent, extending its gain of more than 1.6 percent on Thursday.
The central bank said it would pump $40 billion into the U.S. economy each month until it saw a sustained upturn in the weak jobs market. It also pushed back expectations for when it would raise interest rates.
Cyclical sectors, which are tied to the pace of growth, advanced on the news. Banks were especially strong, with Barclays Plc up 3.1 percent to $14.80 and HSBC Holding up 1.9 percent at $47.41. Japan’s Mitsubishi UFJ Financial Group rose 1.9 percent to $4.93.
Equities have rallied in recent months on growing expectations for stimulus, but the rise on Friday indicated that the news was better than investors had been expecting.
The BNY Mellon index of leading Asian ADRs rose 1.9 percent while European ADRs rose 0.6 percent and an index of Latin American ADRs was up 1 percent.
Shares in Hong Kong closed at a four-month high while European shares ended at their highest in 14 months.
Gains were limited in Europe as investors sold pharmaceutical companies, a group that is considered a defensive play. GlaxoSmithKline fell 1.6 percent to $45.95 and AstraZeneca lost 0.8 percent to $46.98.
In company news, Russia’s Mechel climbed 5.2 percent to $7.84 after sources said the company was looking to sell a 25 percent stake in its East Siberian Elga coal deposit to South-East Asian investors.