Asia stocks recover on Wall Street rebound
Friday, August 31, 2007
ASIAN stock markets made a cautious rebound yesterday as investors kept an eye on the United States Federal Reserve moves to combat housing woes that have battered global bourses.
Asian markets were in positive territory after a strong recovery on Wall Street overnight, but early gains were pared in Tokyo and some other bourses as dealers looked to a speech Friday by Fed chairman Ben Bernanke.
Hong Kong was among the top regional performers, closing up two per cent on hopes for interest rate cuts both in the US and locally.
Dealers said China counters were also lifted by expectations that Beijing will expand its programme to allow mainland individuals to invest directly in Hong Kong.
The Federal Reserve pumped more money into the market and Bernanke told a senator the central bank was "prepared to act as needed", raising hopes that the Fed will cut its key rate when it meets next month.
The problems in the US mortgage market erupted due to "subprime" home borrowers with shaky credit histories defaulting on their loans.
Investors then rushed to cover their losses, triggering fears of a liquidity squeeze.
Tokyo closed up 0.88 per cent, losing some of its momentum on a modest appreciation of the yen, which makes Japanese exports less competitive.
The Nikkei-225 index closed up 140.99 points at 16,153.82. Volume traded fell to 1.52 billion shares, down from 1.69 billion shares on Wednesday.
Among other markets, Taipei closed 1.48 per cent higher, Seoul rose 0.9 per cent, Wellington rose 0.57 per cent, Shanghai surged 1.14 per cent and Manila soared 3.4 per cent.
Kuala Lumpur rose 0.80 per cent, Jakarta was up 0.70 per cent and Mumbai was up 0.86 per cent.
However, Bangkok was flat and Singapore bucked the trend with a 0.41 per cent fall.
Australian share prices closed up 0.6 per cent, well off the day's highs as banking stocks were sold in late trade after a fresh warning over the recent turmoil in credit markets.
In Hong Kong, the Hang Seng index closed up 463.94 points at 23,484.54.
US stocks open down
In New York, at the open yesterday, US stocks fell as a downgrade of Wal-Mart Stores and uncertainty about when the Federal Reserve would cut interest rates rattled investors.
At 1331 GMT (9.31pm yesterday, Brunei time), the Dow Jones industrial average was down 99.09 points, or 0.75 per cent, at 13,190.20. The Standard & Poor's 500 Index was down 11.31 points, or 0.77 per cent, at 1,452.45. The Nasdaq Composite Index was down 20.02 points, or 0.78 per cent, at 2,543.14.
Europe stocks edge up
At 1019 GMT yesterday in London, the FTSEurofirst 300 index of top European stocks was up 0.36 per cent at 1,503.83 points, continuing a tentative recovery following a slide of eight per cent from a 6-1/2 year peak in mid-July.
Across Europe, Britain's FTSE 100 was up 0.55 per cent, France's CAC 40 up 0.79 per cent and Germany's DAX up 0.25 per cent.Agencies
Asian markets were in positive territory after a strong recovery on Wall Street overnight, but early gains were pared in Tokyo and some other bourses as dealers looked to a speech Friday by Fed chairman Ben Bernanke.
Hong Kong was among the top regional performers, closing up two per cent on hopes for interest rate cuts both in the US and locally.
Dealers said China counters were also lifted by expectations that Beijing will expand its programme to allow mainland individuals to invest directly in Hong Kong.
The Federal Reserve pumped more money into the market and Bernanke told a senator the central bank was "prepared to act as needed", raising hopes that the Fed will cut its key rate when it meets next month.
The problems in the US mortgage market erupted due to "subprime" home borrowers with shaky credit histories defaulting on their loans.
Investors then rushed to cover their losses, triggering fears of a liquidity squeeze.
Tokyo closed up 0.88 per cent, losing some of its momentum on a modest appreciation of the yen, which makes Japanese exports less competitive.
The Nikkei-225 index closed up 140.99 points at 16,153.82. Volume traded fell to 1.52 billion shares, down from 1.69 billion shares on Wednesday.
Among other markets, Taipei closed 1.48 per cent higher, Seoul rose 0.9 per cent, Wellington rose 0.57 per cent, Shanghai surged 1.14 per cent and Manila soared 3.4 per cent.
Kuala Lumpur rose 0.80 per cent, Jakarta was up 0.70 per cent and Mumbai was up 0.86 per cent.
However, Bangkok was flat and Singapore bucked the trend with a 0.41 per cent fall.
Australian share prices closed up 0.6 per cent, well off the day's highs as banking stocks were sold in late trade after a fresh warning over the recent turmoil in credit markets.
In Hong Kong, the Hang Seng index closed up 463.94 points at 23,484.54.
US stocks open down
In New York, at the open yesterday, US stocks fell as a downgrade of Wal-Mart Stores and uncertainty about when the Federal Reserve would cut interest rates rattled investors.
At 1331 GMT (9.31pm yesterday, Brunei time), the Dow Jones industrial average was down 99.09 points, or 0.75 per cent, at 13,190.20. The Standard & Poor's 500 Index was down 11.31 points, or 0.77 per cent, at 1,452.45. The Nasdaq Composite Index was down 20.02 points, or 0.78 per cent, at 2,543.14.
Europe stocks edge up
At 1019 GMT yesterday in London, the FTSEurofirst 300 index of top European stocks was up 0.36 per cent at 1,503.83 points, continuing a tentative recovery following a slide of eight per cent from a 6-1/2 year peak in mid-July.
Across Europe, Britain's FTSE 100 was up 0.55 per cent, France's CAC 40 up 0.79 per cent and Germany's DAX up 0.25 per cent.Agencies
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