Global stock markets buoyed by optimism

LONDON » Global stock markets rose yesterday, buoyed by optimism for further earnings growth in Europe and on signs that Japanese companies are boosting capital spending to take advantage of future economic expansion.

Britain's FTSE 100 Index gained 0.6 percent to close at 5,986.60. Germany's DAX index also added 0.6 percent to finish at 5909.72, while France's CAC-40 index rose 0.4 percent, ending at 5203.24. Japan's Nikkei 225 index jumped 223.82 points, or 1.39 percent, to 16,358.07. Taiwan shares rose to a three-month high, finishing at 6,750.78 -- the index's highest close since June 2.

"Earnings to date have been very good," said Mike Lenhoff, chief strategist at Brewin Dolphin Securities Ltd. in London. "These equity markets could do quite well if the current backdrop holds."

Shares of European Aeronautic Defence and Space Company NV fell 0.9 percent in Paris after Airbus, in which it holds a majority stake, announced further management changes in the A380 program in the wake of costly delays to the billion $13 billion super jumbo development.

Airbus named Mario Heinen the head of the A380 program. He replaces Charles Champion, who also steps down from his role as chief operating officer but stays on as an adviser to the new Airbus CEO, Christian Streiff.

Eutelsat Communications ended flat after the satellite operator said it swung to a profit in the full year and raised its forecast for the next fiscal year as it benefits from rising demand for digital broadcasting. Net profit for the year ended June 30 came to $51.6 million compared with a net loss the previous year, the Paris-based company said.

Air Liquide SA, the world's largest maker of industrial gases, fell 2.2 percent. The Paris-based company said first-half profit rose 10 percent after it cut costs, raised prices and won new contracts.

Net income for the six months ended June 30 rose 10 percent to $16.4 million from the same period a year earlier, while revenue rose 8.8 percent to $7.04 billion.

BAE Systems PLC gained 1.5 percent in London. The company declined to say yesterday when its board might make a recommendation to its shareholders on whether to sell or retain its 20 percent stake in commercial airplane maker Airbus.