Swiss stocks climbed for a second day, erasing earlier losses, as luxury-goods makers rose amid speculation China may offer support for the euro area.
Swatch Group AG and Cie. Financiere Richemont SA both gained more than 4 percent in Zurich. ABB Ltd. and Adecco SA also advanced. Sonova Holding AG jumped 14 percent after receiving U.S. approval to resume sales of its cochlear implants.
The Swiss Market Index, a measure of the biggest and most actively traded companies, advanced 1.1 percent to 5,417.89 at the 5:30 p.m. close in Zurich. The gauge has still tumbled 19 percent from this year’s high on Feb. 18 amid concern that European leaders won’t contain the region’s sovereign-debt crisis. The broader Swiss Performance Index also increased 1.1 percent today.
“Stocks posted a second day of consecutive gains as investors continued to bargain hunt in some of the badly beaten down sectors,” said Sean Power, an equity analyst at City Index in London.
Stocks climbed across Europe as Caijing magazine reported that China is still willing to buy bonds of nations hit by the debt crisis. The magazine cited Zhang Xiaoqiang, a vice chairman of the National Development and Reform Commission.
Wen Jiabao Speech
The report followed comments from Premier Wen Jiabao that developed nations should cut their deficits rather than relying on China to bail out the world economy.
Separately, finance ministers from Brazil, Russia, India and China will meet on Sept. 22 to discuss ways to help Europe overcome its debt crisis, R. Gopalan, secretary in the Department of Economic Affairs in the finance ministry, said in New Delhi.
Swatch, the biggest watchmaker, and Richemont increased 4.1 percent to 376.90 francs and 6.3 percent to 48.04 francs, respectively.
CA Cheuvreux today wrote in report to clients that the least sensitive and most defensive industries in a euro-area financial crisis are those exposed to the global economy, such as luxury-goods makers.
Both Swatch and Richemont, the world’s second-biggest luxury goods company, generate more than 50 percent of their revenue outside the euro area.
Adecco, the world’s largest temporary-staffing company, gained 3.6 percent to 34.91 francs. ABB, the largest maker of power-transmission gear, rose 2.4 percent to 16.10 francs.
Sonova jumped 14 percent to 75.90 francs after receiving approval from the U.S. Food and Drug Administration to resume sales of its HiRes 90K cochlear implants following a recall.