ADR Report: Shares Close Higher As Earnings Season Begins

International companies trading in New York closed higher Tuesday as investors were encouraged by a positive kick-off to earnings season, while French stocks got a lift on comments from Fitch Ratings that it doesn't plan to downgrade the country this year.

The Bank of New York index of ADRs rose to 1.3% to 122.40.

A Fitch representative reiterated the rating's firm December statement in which it said France would keep its triple-A credit rating in 2012 unless there is a major economic shock.

Among French banks, BNP Paribas SA (BNPQY, BNP.FR) was up 5.8% to $18.83, Societe Generale SA (SCGLY, GLE.FR) rose 6.6% to $4.05 and Credit Agricole SA (CRARY, ACA.FR) closed 3.1% higher at $2.63.

Banco Bilbao Vizcaya Argentaria SA (BBVA, BBVA.MC) shares rose 5% to $7.99, even after the warning of a EUR1 billion hit to fourth-quarter earnings from writing down the book value of its U.S. franchise. Investors took the news in stride because the writedown will positively impact the Spanish bank's core capital thanks to a EUR400 million tax benefit. "Everything that points away from a possible capital increase is good news," said David Gualtieri, director of equity sales at Intermoney.

The European index rose 1.1% to 113.13.

Shares in Cairn Energy PLC (CRNCY, CNE.LN) gained 4.8% to $8.36 after the company provided details of a planned $3.5 billion payout following its sale of a 40% stake in Cairn India to Vedanta Resources PLC's (VED.LN) last year.

Deutsche Telekom AG (DTEGY, DTE.XE) and online discounter Groupon Inc (GRPN) confirmed Tuesday they have entered a partnership to jointly accelerate the growth in mobile internet services. Groupon will provide coupons for several European subsidiaries of Deutsche Telekom that will be available to mobile users, the companies said in a joint statement. Shares of Deutsche Telekom closed 1.6% higher at $11.42.

The Asian index added 1.7% to 118.30.

Olympus Corp. (OCPNY, 7733.TO) said it filed lawsuits against 19 of its current and former board members, including President Shuichi Takayama, that it deems responsible for its accounting scandal, seeking a total of Y3.61 billion in damages. Shares of the Japanese maker of cameras and medical equipment surged 23.3% to $16.53 as the company strives to regain investor trust following one of the biggest corporate scandals to rock Japan in recent years.

Focus Media Holding Ltd. (FMCN, 8112.HK) said it will begin paying its shareholders a quarterly dividend, a plan that the besieged Chinese digital-advertising company said reflects confidence in its business. Investors cheered a new dividend policy that aims to distribute shareholders' payments equal to roughly 25% of the company's annual adjusted profit in the preceding fiscal year. Shares were up 9.7% to $20.52.

The Latin American index advanced 1.6% to 347.18 and the emerging markets index climbed 1.8% to 288.26.

Mexican airport operator Grupo Aeroportuario del Pacifico SAB (PAC, GAP.MX), or GAP, said it expects revenue growth between 7.5% and 8.5% this year, with passenger traffic at its airports increasing by 3% to 4%. Shares climbed 1% to $35.14.

Copper futures rose to a one-week high after record monthly imports to top consumer China raised hopes that demand for the industrial metal would hold up despite the headwinds from Europe's debt crisis. That boosted the sale of Brazil's Vale SA (VALE, VALE5.BR), which climbed 1.6% to $22.85, and Peru's Compania de Minas Buenaventura SA (BVN, BUENAVC1.VL), which closed 2% higher at $40.23.

-By Maya Pope-Chappell, Dow Jones Newswires; 212-416-3670; [e-mail]