ADR Report: Shares Rise After China's Surprise Interest-Rate Cut

06/07/2012| 05:21pm US/Eastern

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   By Mia Lamar 
 

International companies trading in New York closed slightly higher Thursday after a surprise interest-rate cut from China and a well-received bond auction in Spain eased some concerns about the state of the global economy.

The Bank of New York index of ADRs edged up 0.24% to 113.96. Chinese companies were among the strongest gainers after the People's Bank of China said it would cut the benchmark interest rate for savers and borrowers by a quarter of a percent, its first such action since December 2008.

Home Inns & Hotels Management Inc. (HMIN, K3UD.SG) gained 4% to $22.92, Charm Communications Inc. (>> Charm Communications Inc (ADR)) climbed 15% to $7.40 and AutoNavi Holdings Ltd. (>> AutoNavi Holdings Ltd (ADR)) added 5.2% to $11.95.

The Asian index ended up 0.41% at 113.54.

Beijing-based Vimicro International Corp. (VIMC) said it has been named a preferred supplier to the Fuzhou municipal government as part of a strategic partnership. The chip maker called the pact an "important step forward" for its security surveillance business. Shares of Vimicro jumped 7.3% to $1.03.

Apple Inc. (>> Apple Inc.) plans to offer Baidu Inc.'s (BIDU) search engines on iPhones in China, Bloomberg News reported, citing two people with knowledge of the matter. Shares of the Chinese Internet search giant rose 2.8% to $122.46.

The European index rose 0.1% to 104.92.

U.K. budget airline Ryanair Holdings PLC (RYAAY, RYA.DB) on Thursday reported a 5% rise in air-traffic figures for May. As Europe works through a protracted slowdown, the Dublin-based airline has moved quickly to capitalize on the collapse of other airlines, such as Spanish carrier Spanair and Hungarian airline Malev.

Shares of the Dublin-based airline rose 2.5% to $30.99.

The Latin American index gained 0.8% to 308.93 and the emerging-markets index rose 0.5% to 263.65.

Shares of metals companies gained on China's interest-rate cut, an effort that is designed to stimulate spending in the world's second-largest economy. Brazil's Companhia Siderurgica Nacional (SID, CSNA3.BR) rose 1.6% to $6.38. Gerdau SA (GGB, GGBR3.BR, GGBR4.BR), meanwhile, rose 1.1% to $8.33.

Write to Mia Lamar at mia.lamar@dowjones.com.

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