HONG KONG, March 19: Asian stocks soared on Wednesday after a big bounce on Wall Street as the US Federal Reserve slashed interest rates in a bid to contain a spiralling financial crisis and risk of recession.
But a dollar rally faded as traders took profit in the wake of the Fed’s three-quarter point rate cut and better-than-expected earnings results from US investment banks Lehman Brothers and Goldman Sachs.
The central bank’s move came amid what many analysts say is the worst financial crisis on Wall Street in decades, after a cash crunch caused venerable US investment bank Bear Stearns to implode.
Tokyo closed up 2.5 per cent, Seoul rose 2.1 per cent, Shanghai added 2.5 per cent, Sydney surged 4.0 per cent as Hong Kong gained 2.26 per cent. Wellington rose 1.42 per cent, Taipei added 1.51 per cent, Manila gained 1.56 per cent and Kuala Lumpur was up 0.6 per cent.
The US central bank cut its benchmark fed funds rate by 75 basis points to 2.25 per cent on Tuesday, the lowest level in over three years.
But the market’s gains could be short-lived.
TOKYO: Japanese share prices closed up 2.48 per cent after a US interest rate cut and better-than-expected banking results sparked a strong rally on Wall Street.
Dealers said a rebound by the dollar against the yen also eased worries about Japanese exporter earnings, helping stocks to rise for a second straight day.
The Nikkei-225 index gained 296.28 points to 12,260.44. Volume dropped to 2.13 billion shares from 2.27 billion shares Tuesday.
HONG KONG: Hong Kong share prices closed higher after the US Federal Reserve cut its key interest rate by 75 basis points, triggering a big rally on Wall Street.
But dealers said the local bourse’s gains were capped as the benchmark index faced strong resistance at around the 22,000 points level. They also noted rumours that a US-based hedge fund is facing possible collapse.
The Hang Seng Index closed up 482.33 points at 21,866.94 on turnover of 98.7 billion Hong Kong dollars (12.68 billion US dollars).
SYDNEY: Australian share prices surged 4.0 per cent, as financial stocks around Asia soared after the US Federal Reserve cut interest rates.
The S&P/ASX 200 gained 203 points to 5,289.1. Turnover was 1.7 billion shares worth 7.8 billion dollars (7.3 billion US).
Markets were also buoyed by better-than-expected results from Goldman Sachs and Lehman Brothers which soothed anxiety over the troubled credit markets.
SINGAPORE: Singapore share prices closed steady as earlier optimism over the United States interest rate cuts gave way to caution.
The Straits Timex Index (STI) declined 0.37 points to 2,833.21 on volume of 1.62 billion shares worth 2.19 billion Singapore dollars (1.60 billion US).
Gains failed to hold in the absence of strong positive leads and some traders opted to close their positions given a holiday-shortened trading week.
KUALA LUMPUR: Malaysian share prices closed 0.6 per cent higher as regional markets rallied after the United States Federal Reserve slashed its key interest rate.
The composite index closed up 6.52 points at 1,186.54 as some cautious investors took profits ahead of a public holiday Thursday. Volume was 693.81 million shares, valued at 1.5 billion ringgit (314 million dollars).
JAKARTA: Indonesian share prices closed 0.7 per cent lower as wary investors locked in gains from a strong but short-lived rally in early trade ahead of the long weekend.
The composite index closed down 16.23 points at 2,323.57. Volume was 3.16 billion shares worth 5.5 trillion rupiah (594 million dollars).
WELLINGTON: New Zealand share prices rose 1.42 per cent, amid a positive reaction in world markets to an interest rate cut in the US.
The NZX-50 gross index rose 48.63 points to close at 3,467.26 on turnover worth 122.3 million dollars (99.6 million US).—AFP
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