Asian stocks up despite US recession fears
HONG KONG, Jan 25: Asian shares closed up on Friday as they continued to recover ground following an earlier plunge, shrugging off US recession fears and a shocking fraud at French bank Societe Generale.
The rebound picked up steam in the wake of the US Federal Reserve's emergency interest rate cut, with some key bourses recouping losses incurred when shares tumbled worldwide due to concerns about the ailing US economy.
The bank revealed the fraud to the public Thursday, sending confidence in global banking to a new low, but by then the Fed had chopped rates Tuesday in a move some commentators argued smacked of near-panic amid the stocks meltdown.
TOKYO: Japanese share prices closed up 4.10 per cent, with a three-day rebound picking up steam after US political leaders reached a deal aimed at warding off recession, dealers said.
Shares on Asia's largest bourse were also supported by a rise in the dollar triggered by the US economic stimulus package. Japanese exporters benefit from a weak yen against the dollar.
The Tokyo Stock Exchange's benchmark Nikkei-225 index ended up 536.38 points at 13,629.16. The broader Topix index of all-first section shares gained 60.32 points, or 4.70 per cent, to 1,344.77, recovering the symbolic 1,300-point mark.
HONG KONG: Hong Kong share prices closed up 6.7 per cent, dealers said.
The Hang Seng index closed up 1,583.10 points at 25,122.37. Turnover was 126.66 billion Hong Kong dollars (16.22 billion US).
SYDNEY: Australian share prices closed up 5.0 per cent, dealers said.
The benchmark S&P/ASX 200 closed up 279.9 points at 5,860.3. The broader All Ordinaries ended the day up 280.5 points at 5,886.3.
Turnover was 1.66 billion shares worth 9.85 billion dollars (8.66 billion US).
SINGAPORE: Singapore share prices closed 3.59 per cent higher, dealers said.
The blue chip Straits Times index rose 109.39 points at 3,159.48. Volume was 2.03 billion shares worth 2.51 billion Singapore dollars (1.76 billion US).
This probably isn't the bottom of the pond yet, as volatility and sentiment will continue to dictate the market in the next few months, Terence Wong, an analyst with DMG & Partners Securities, said.
KUALA LUMPUR: Malaysian share prices closed 1.6 per cent higher, dealers said.
The Kuala Lumpur Composite Index (KLCI) closed up 22.05 points.
The Malaysian economy is likely to perform well in the long run, but the local bourse will continue to follow the global market fluctuations said Phua Lee Kerk, chief executive of Pheim Unit Trusts Bhd.
JAKARTA: Indonesian share prices closed 4.1 per cent higher, dealers said.
The Jakarta composite index closed up 103.79 points at 2,620.49.
Bumi rose 550 rupiah to 5,950. Telkom advanced 300 to 9,350. Bank Mandiri rallied 200 to 3,300.
WELLINGTON: New Zealand share prices closed 1.93 per cent higher, dealers said.
The benchmark NZX-50 index rose 70.54 points to 3,729.15.
Telecom rose six cents to 4.09 dollars, Contact Energy was up six cents at 7.43 and Fletcher Building surged 45 cents to 10.55.
MUMBAI: Indian share prices surged 6.62 per cent, dealers said.
The benchmark 30-share Sensex index soared 1,139.92 points to 18,361.66, its biggest single-day point gain. There could be volatility in the days ahead.—AFP