Asian markets jump after rescue plans unveiled

October 14th, 2008 - 12:02 pm ICT by IANS  

Tokyo, Oct 14 (DPA) Asia’s stock markets surged Tuesday after the governments of the world’s leading industrial nations announced plans to fight the global financial crisis.Tokyo’s stocks rocketed Tuesday with the benchmark Nikkei 225 Stock Average rising 13 percent in morning trading after Wall Street’s overnight surge.

After being closed for a holiday Monday, the Nikkei rose more than 1,000 points to cross the important 9,000 barrier. Other markets in Asia also posted substantial gains.

The Nikkei boasted gains across the board, up 1,077.13 points and going into the midday break at 9,355.56.

The broader Topix index rose 106.61 points, or 12.68 percent, to 947.47.

Hong Kong’s Hang Seng Index surged more than four percent in the opening minutes of trading on optimism over the bank bail-out deals.

The blue-chip index went up 664 points, or 4.07 percent, to 16,976, 15 minutes after the market opened, before settling down to 16,901.79 at midday. However, Hong Kong shares are still off almost 50 percent from their peak of just below 32,000 in October 2007.

Taiwan’s Taiex rose 5.2 percent to 5.281 while Sydney’s ASX 200 index posted its highest-ever rise - opening 5.8 percent higher and jumping to 4,423.

The lift came ahead of an economic stimulus package worth 10.4 billion Australian dollars (US$7 billion) that the government announced to try to ward off a recession.

New Zealand’s NZX rallied 6.3 percent to 2,957.9 after being closed Monday.

Indonesia’s benchmark Jakarta Composite Index opened 6.56 percent higher, rising 95.9 points to 1,557.77.

In Singapore, the Straits Times Index joined in the Asian rally, opening 5.19 percent stronger at 2,184.12.

Asia’s markets followed other international markets upward after key European governments unveiled unprecedented state cash injections Monday to steady their reeling banks and after a weekend Group of Seven (G7) meeting at which the leading industrialised nations pledged action to fight the global crisis.

European stocks rose as a result, followed by Wall Street with the Dow Jones Industrial Average seeing its biggest one-day points gain in history, rising 936.42 points, or 11.08 percent, to 9,387.61.

Tags: , , , , , , , , ,

Posted in Business |