ADR Report: Shares Up As European Debt Auctions Bring Optimism

International companies trading in New York closed higher Thursday, in line with the broader markets, as optimism over strong Italian and Spanish debt auctions outweighed tepid U.S. economic data.

The Bank of New York Index of ADRs gained 0.4% to 122.43, aided by Europe's financial sector.

Fitch Ratings' head of global sovereign ratings, speaking at a conference in Paris, said France "is not a crisis country" and will not be downgraded from triple-A so long as its debt isn't pushed up sharply by shocks related to the euro-zone debt crisis.

The remarks boosted the shares of France's three largest banks. BNP Paribas SA (BNPQY, BNP.FR) closed 4.6% higher at $20.19, Credit Agricole SA (CRARY, ACA.FR) rose 4.2% to $2.73, and Societe Generale SA (SCGLY, GLE.FR) added 3.1% to $4.27.

Royal Bank of Scotland Group PLC (RBS, RBS.LN), the mostly government-owned U.K. bank, unveiled a broad-ranging restructure to prune back large parts of its investment banking unit, which will see the bank shed a further 3,500 jobs over a three-year period. Shares gained 5.4% to $7.17.

The European index climbed 0.5% to 112.79.

Dutch financial services company ING Groep NV (ING, INGA.AE) said it will abandon its plan to float its European-Asian insurance operations as one entity because choppy markets in Europe make it difficult to unload it. Shares gained 3.8% to $7.99.

Luxembourg-based steel giant ArcelorMittal (MT, MT.AE) said it is preparing to restart its west side steelmaking operations in Cleveland, Ohio sometime in the early part of the second quarter as customer demand picks up and in response to anticipated market conditions. Shares increased 2.6% to $19.83.

The Latin American index grew 0.9% to 352.54, and the emerging markets index rose 0.4% to 290.54.

Brazilian state-run energy giant Petroleo Brasileiro (PBR, PETR4.BR), or Petrobras, said late Wednesday that its total oil and gas reserves rose in 2011 due to the inclusion of recently discovered offshore fields. Shares rose 2.2% to $28.21.

Companhia Brasileira de Distribuicao (CBD, PCAR4.BR), Brazil's largest supermarket chain by revenue, said its fourth-quarter gross same-store sales rose 8.7% from the year-ago period. Shares climbed 1.4% to $39.08.

December passenger traffic at Mexican airports beat analysts' expectations, with the absence of bankrupt airline Mexicana no longer dragging on results. UBS says "2012 is shaping up to post better traffic figures than we have been expecting." The brokerage's favorite play of Mexico's three publicly traded airport groups is Grupo Aeroportuario del Pacifico SAB (PAC, GAP.MX), whose shares gained 1.1% to $34.90.

The Asian index closed 0.1% lower at 118.34.

Scandal-hit Olympus Corp. (OCPNY, 7733.TO) is in talks with five major technology firms and plans to enter into a capital alliance with one or more of them in the coming months, the Asahi Shimbun reported in its Thursday morning edition, citing people familiar with the matter. Shares climbed 4.1% to $16.50.

China Grentech Corp. (GRRF) said it had agreed to be taken private by a group of buyers for $3.15 per American depository share. Shares of the provider of radio frequency and wireless coverage products jumped 18% to $2.94.

But those gains were wiped out by India's technology sector after Infosys Ltd. (INFY, 500209.BY), the country's second-largest software exporter, sharply cut its forecast in dollar terms for the fiscal year in the wake of the uncertain global economic climate. Shares tumbled 8.8% to $51.85.

Wipro Ltd. (WIT, 507685.BY) and Satyam Computer Services Ltd. (SAYCY, 500376.BY) also declined. Wipro shares fell 4.4% to $9.99 and Satyam closed 2.2% lower at $2.64.

-By Ian Thomson, Dow Jones Newswires; 212-416-2314; [e-mail]