HONG KONG, Sept 8: Asian stock markets surged on Monday as a US federal takeover of ailing mortgage giants Fannie Mae and Freddie Mac eased fears of a spiralling global financial crisis.

The Tokyo bourse rose more than three per cent, while Hong Kong surged over four per cent, as investors cheered Sunday’s dramatic move in Washington aimed at shoring up the troubled US housing market.

The sudden upturn came on the heels of a worldwide slump Friday after US unemployment soared to a five-year high, sparking fresh talk of a recession in the world’s biggest economy.

The US Treasury Department announced Sunday, when markets were closed, that it will put Freddie Mac and Fannie Mae under strict federal control and may invest up to a total of $200 billion in them.

TOKYO: Japanese share prices soared 3.38 per cent as a US federal takeover of two key ailing mortgage giants eased fears of a global liquidity crunch, dealers said.

The Tokyo Stock Exchange’s benchmark Nikkei-225 index surged 412.23 points to close at 12,624.46.

The broader Topix index of all first-section shares jumped 45.57 points or 3.89 per cent to 1,216.41.

Mitsubishi UFJ Financial Group rose 13 per cent to a limit-up 850 yen, while Mizuho Financial Group also hit its ceiling, gaining 12 per cent to 463,000 yen.

Sumitomo Mitsui Financial Group ended up 15 per cent at 674,000 yen.

HONG KONG: Hong Kong shares closed up 4.3 per cent, dealers said.

The Hang Seng Index closed up 860.99 points at 20,794.27. Turnover was 68.41 billion Hong Kong dollars (8.77 billion US).

Trading firm Li and Fung led the risers, jumping 10.9 per cent after Singapore’s Temasek Holdings bought a 4.6 per cent stake in the firm for 3.88 billion Hong Kong dollars.

News of the US government’s bail out of mortgage giants Fannie Mae and Freddie Mac boosted sentiment.

SYDNEY: Australian share closed up 3.9 per cent, dealers said.

The benchmark S&P/ASX 200 index closed up 190.4 points at 5,067.5, while the broader All Ordinaries gained 176.8 points, or 3.6 per cent, to 5,126.3.

Turnover was 1.19 billion shares worth $6.46 billion (US$5.37 billion).

Dealers said Monday’s rise on the Australian market, the biggest one-day jump since March 19, was boosted by US government intervention in mortgage giants Fannie Mae and Freddie Mac.

SINGAPORE: Singapore shares closed 4.67 per cent higher, dealers said.

The blue-chip Straits Times Index closed 120.28 points higher at Volume traded totalled 971 million shares worth 1.58 billion Sin 2,694.49. gapore dollars (1.1 billion US).

With the massive selling seen last week, there are opportunities for near-term trading, OCBC Investment Research said in a note.

KUALA LUMPUR: Malaysian share prices ended 0.5 per cent higher, dealers said.

The Kuala Lumpur Composite Index gained 5.39 points to close at 1,075.93.

Shares of government-led companies and finance stocks led gains. Some construction stocks attracted buying interest from foreign funds but profit-taking narrowed gains, one dealer told Dow Jones Newswires.

Among the decliners were palm oil concerns IOI Corp., down 1.2 per cent at 4.86 ringgit, while top bank Maybank lost 0.65 per cent at 7.20 ringgit.

WELLINGTON: New Zealand share prices closed 1.13 per cent higher, dealers said.

The benchmark NZX-50 Index rose 38.22 points to 3,374.40.

Top stock Telecom was disappointed, ending unchanged at 3.15, but Contact Energy gained 35 cents to 8.71 and Fletcher Building ended 14 cents ahead at $7.69.

MUMBAI: Indian shares ended 3.18 per cent higher, dealers said.

The benchmark 30-share Sensex index rose 461.14 points to 14,944.97, snapping two consecutive days of losses.—AFP