ADR Report: Shares Rise On Signs Of Stabilization In Europe

International companies trading in New York closed higher Friday, in line with the broader markets, as signs of political progress in Italy and Greece boosted investor confidence and sent commodity prices upward.

The Bank of New York index of ADRs added 2.2% to 123.89, aided by European stocks.

Italy's Senate on Friday approved a budget bill that includes new austerity measures, clearing the way for parliament's lower chamber to pass the law on Saturday and for the resignation of Prime Minister Silvio Berlusconi. Meanwhile, interim Greek Prime Minister Lucas Papademos appointed a new cabinet Friday, which will be tasked with implementing the country's latest bailout before the country's elections.

European banks posted broad gains, with shares of Germany's Deutsche Bank AG (DB, DBK.XE) up 6.1% to $39.77, France's BNP Paribas SA (BNPQY, BNP.FR) up 6.2% to $22 and Royal Bank of Scotland Group PLC (RBS, RBS.LN) up 6.3% to $7.25.

Allianz SE (AZSEY, ALV.XE) on Friday said it will increase its dividend payout ratio for this year so that shareholders aren't penalized for an expected net profit decline which it said doesn't adequately reflect its performance. Shares climbed 6% to $10.42.

Overall, the European index rose 2.4% to 114.79.

Shares of Italy's largest telecommunications company, Telecom Italia SpA (TI, TIT.MI), jumped 6.2% to $12.23 after it reported earnings rose 33% in the third quarter, helped by robust growth in Latin America and as revenue fell less sharply at home.

Meanwhile, a Russian court Friday rejected two multi-billion dollar claims against BP (BP, BP.LN) brought by minority shareholders in the U.K. oil major's Russian joint venture TNK-BP Holding (TNBP.RS). The arbitration court in the Siberian town of Tyumen, where TNK-BP Holding is registered, ruled against a small group of minority shareholders, who allege BP acted against the company's best interest by dismissing a bid to replace the U.K. company in a share swap and Arctic exploration deal with Rosneft. BP shares rose 2.1% to $44.01.

The Asian index gained 1.6% to 118.27.

Chinese energy companies posted strong gains as prices of crude-oil futures settled at its highest level in nearly four months, closing 1.2% higher to $1.21. Sinopec Shanghai Petrochemical Co. (SHI, K3DD.SG, 600688.SH, 0338.HK) added 2.5% to $38.22, China Petroleum & Chemical Corp. (SNP, 0386.HK, 600028.SH) gained 2.2% to $106.48, and PetroChina Co. (PTR, K3OD.SG, 601857.SH, 0857.HK) closed 1.7% higher at $134.28.

Shares of Home Inns & Hotels Management Inc. (HMIN, K3UD.SG) jumped 9.5% to $35.29 as the Chinese hotel chain reported late Thursday its third-quarter profit rose 14%, beating analysts' estimates. The company also reported improving occupancy against the previous quarter.

The Latin American index closed 2.4% higher at 354.20 while the emerging markets index advanced 2.2% to 294.16.

South American oil companies also posted strong gains in line with the energy sector. Shares of Petroleo Brasileiro SA (PBR, PETR4.BR) closed 2.4% higher at $27.49, while shares of Petrobras Argentina SA (PZE, PESA.BA) rose 1.1% to $13.63.

South African mining companies rallied as gold futures rebounded on euro-zone optimism after two days of losses. Shares of AngloGold Ashanti Ltd. (AU, ANG.JO) rose 3.4% to $48.83, while Harmony Gold Mining Co. Ltd. (HMY, HAR.JO) advanced 3.5% to $14.18 and Gold Fields Ltd. (GFI, GFI.JO) jumped 3.2% to $17.68. Shares of South American miners also improved as Brazil's Vale SA (VALE, VALE5.BR) closed 2.3% higher at $25.99, and Peru's Compania de Minas Buenaventura SA (BVN, BUENAVC1.VL) advanced 3.6% to $44.38.

-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287; [e-mail]