ADR Report: Shares Close Higher As European Financials Jump

International companies trading in New York closed sharply higher Tuesday, in line with the broader market, as investor sentiment was boosted by a successful Spanish debt auction.

The Bank of New York index of ADRs rose 3.2% to 118.16 as European financial companies posted some of the biggest gains.

Spain sold more short-term Treasury bills than the maximum target Tuesday, with average yields falling sharply from the previous auction of bills in November.

Among shares of Spanish banks, Banco Bilbao Vizcaya Argentaria SA (BBVA, BBVA.MC) rose 6.8% to $8.47, and Banco Santander SA (STD, SAN.MC) gained 5.9% to $7.57. Among fellow European financials, Credit Agricole SA (CRARY, ACA.FR) jumped 12% to $2.83 and Societe Generale SA (SCGLY, GLE.FR) added 9.6% to $4.47.

The European index added 3.1% to 110.36.

Spanish oil major Repsol YPF SA (REPYY, REP.MC) traded up 4.3% to $26.69 after it put to an end a five-year power struggle with the agreed purchase of a 10% stake from its heavily indebted top shareholder Sacyr-Vallehermoso SA. Shares were also boosted by a sharp rise in the price of oil.

Car maker Daimler AG (DDAIF, DAI.XE) is seeking a new large shareholder in China, manager magazin reported in the advance release of an article to be published Friday, citing people close to the company. Separately, the German automotive company said its truck division is at full capacity going into the first quarter of 2012. Shares of Daimler rose 8.3% to $43.74.

The Asian index gained 3.1% to 112.26.

Olympus Corp. (OCPNY, 7733.TO) shares surged 39% to $14.30 after The Wall Street Journal reported the company hired SMBC Nikko Securities Inc. and Citigroup Inc. (C) to help it raise fresh capital and restore its financial health, citing people familiar with the matter.

Chinese pipes and connectors manufacturer WSP Holdings Ltd.'s (WH) third-quarter revenue modestly increased and gross margin jumped sequentially as the average selling prices of its American Petroleum Institute and non-API products rose and export sales volume increased. Shares of WSP Holdings climbed 4.2% to 50 cents.

The Latin American index climbed 3.7% to 328.81.

The chief executive of Brazil's Petroleo Brasileiro (PBR, PETR4.BR), or Petrobras, said the ongoing European sovereign-debt crisis and its reverberations in the global economy are unlikely to affect the oil industry next year. Shares of Petrobras jumped 5.1% to $25.26.

The emerging-markets index rose 3.5% to 271.95.

India's Infosys Ltd. (INFY, 500209.BY) said its business-process-outsourcing division has agreed to buy all of the outstanding shares of Australia's Portland Group Pty., as the software exporter seeks to expand its portfolio of offerings in the sourcing segment. Shares of Infosys rose 4.2% to $51.47 following news of the deal.

-By Corrie Driebusch, Dow Jones Newswires; 212-416-2143; [e-mail]