Asian stocks rocketed yesterday as investors hoped for a positive outcome from the G20 summit and data out of the US showed improving economic activity. And in the US, Investors dove into stocks Thursday, extending a rally that gave the Dow Jones industrial average its best four weeks since 1933.
Asian investors were also following a 2% rise on Wall Street that was brought about by the release of a survey that showed a slightly improved manufacturing outlook.
TOKYO: Up 4.40%. The Nikkei-225 jumped 367.87 points to 8,719.78, its highest since January 9 when it reached 8,836.80. “It is undeniably Wall Street, which had opened (overnight) in negative territory but ended in positive ground, that boosted Tokyo shares,” said Tokai Tokyo Securities strategist Seiichi Suzuki.
SYDNEY: Up 2.81%. The S&P/ASX 200 added 100.5 points to 3,680.2 – its highest since January 14. An unexpected widening in Australia’s trade surplus helped buoy confidence.
HONG KONG: Share prices jumped 7.41% yesterday as HSBC and property counters surged on hopes that the US economy is beginning to bottom out, dealers said. The benchmark Hang Seng Index closed up 1,002.43 points at 14,521.97. HSBC shares jumped 15.3% to HK$49.40.
SHANGHAI: Up 0.72%. The Shanghai Composite Index, which covers A and B shares, closed up 17.27 points at 2,425.29. The market finished at its highest closing level since hitting 2,431.72 on August 21.
SINGAPORE: Shares closed 5.94% higher yesterday, mirroring gains in regional markets following Wall Street’s overnight bounce. The Straits Times Index rose 101.08 points to 1,803.34.
TAIPEI: Up 3.00%. The weighted index surged 159.33 points to 5,473.78, the highest level since 5,524.66 on October 7.
SEOUL: Up 3.54%. The Kospi rose 43.61 points to close at 1,276.97. “The mood has changed a lot,” Lee Yun-Hak, a Woori Investment and Securities analyst, said.
KULA LUMPUR: Share prices on Bursa Malaysia ended broadly higher yesterday with buying of heavyweights lifting the benchmark index for the third consecutive day, dealers said, adding that the smooth transition of power in the country aided investor sentiment. The Kuala Lumpur Composite Index (KLCI) rose 20.89 points or 2.36% to 905.07 after opening 5.89 points higher at 890.7.
BANGKOK: Up 2.99%. The Stock Exchange of Thailand (SET) composite index surged 12.87 points to 442.96 while the blue-chip SET-50 rose 10.65 points to 309.62.
JAKARTA: Up 2.60%. The composite index rose 37.98 points to 1,499.73. Buying in banks and resources blue chips drove the market.
MANILA: Up 0.79%. The composite index gained 15.60 points to 1,982.88 while the all-share index rose 0.70 per ent to 1,283.92.
MUMBAI: Up 4.51%. The benchmark 30-share Sensex index rose 446.84 points to 10,348.83, its third straight day of gains and its highest closing level this year.
EUROPE: London’s FTSE 100 index of leading shares closed 4.28% higher at 4,124.97 points, while the CAC 40 index in Paris soared 5.37% to 2,992.06 points and the DAX in Frankfurt rocketed up 6.07% to 4,381.92 points.
AMERICA: Investors dove into stocks Thursday, extending a rally that gave the Dow Jones industrial average its best four weeks since 1933.
Stocks rose across the board in heavy trading following an accounting rule change that will help banks pare their losses and after commitments from world leaders to toughen regulatory oversight of financial institutions.
The Dow broke through 8,000 for the first time since Feb. 9 but ended slightly below that level ahead of the government’s employment report Friday that could easily upset the market if it comes in below forecasts — or send prices rocketing higher if it’s better than expected.
The Dow is now up 20.4% over the last month, its biggest%age gain in a four-week period since the spring of 1933. Bits of good news about the economy in recent weeks, including better-than expected-numbers on housing and manufacturing, have given investors more reasons to buy.
The Dow gained 216.48, or 2.8%, to close at 7,978.08, after earlier rising as much as 314 points.
Broader market indicators also rose sharply. The Standard & Poor’s 500 index gained 23.30, or 2.9%, to 834.38. The Nasdaq composite index rose 51.03, or 3.3%, to 1,602.63.
“Everyone is in a buying mood,” said Eric Ross, director of research at brokerage Canaccord Adams. “Everyone is feeling good. … A lot of this is simply confidence.”