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Asian markets rally, with Tokyo surging 2.5 percent on optimism about new prime minister

Asian markets rally, with Tokyo surging 2.5 percent on optimism about new prime minister

Asian markets surged Wednesday, with Japanese stocks jumping 2.5 percent as investors gave new Prime Minister Shinzo Abe a vote of confidence that he will carry on economic reforms.
Wall Street's overnight gains also buoyed the region's markets, lifting Singapore to a four-month high.
Tokyo's Nikkei 225 index rose 390.42 points, or 2.51 percent, to 15,947.87, the index's highest close since Sept. 8. It was the Nikkei's biggest percentage gain since July 20.
Stocks rallied after new Prime Minister Shinzo Abe appointed market-friendly financial veterans to his Cabinet Tuesday, including new Finance Minister Koji Omi, who led Japan's Economic Planning Agency in the late 1990s and was responsible for championing many early reforms.
"The market welcomed the Abe administration's coming to power, considering that the government may come up with necessary steps to keep the country's economic growth on track," said Nagayuki Yamagishi, investment strategist with Mitsubishi UFJ Securities.
Gains overnight on Wall Street, where the Dow Jones industrial average rose to its second-best close ever, also boosted investor confidence. The U.S. Conference Board said its consumer confidence index for September rose more than expected, sending a positive signal about the U.S. economy _ a major export market for Asia.
"The latest data proved underlying strength of the U.S. economy, erasing some fears of retreat," Yamagishi said.
Gainers included Fanuc Ltd., Toyota Motor Corp., Mitsubishi Estate Co. and Shin-Etsu Chemical Co.
In Hong Kong, shares rebounded, tracking gains in regional markets as falling U.S. bond yields helped boost demand for banking and property companies. The blue chip Hang Seng Index rose 213.43 points, or 1.2 percent, to 17,521.51.
"Funds continue to flow into the equities market," said Michael Wong, associate director of research at Hantec Investment. "Yesterday's technical correction in the Hang Seng Index gave investors an opportunity to buy today."
Banking and property companies led the day's gains, with those shares supported by falling U.S. bond yields, said Simon Lam, head of research at Christfund Securities.
The 10-year yield is now almost 70 basis points below the Federal Reserve's 5.25 percent target funds rate as a result of recent signs of an economic slowdown in the U.S.
Among banks, BOC Hong Kong jumped 5.3 percent to HK$17.48, becoming the day's biggest blue-chip gainer. Banking giant HSBC Holdings rose 0.9 percent to HK$141.80.
In currencies, the U.S. dollar was trading at 117.16 yen on the Tokyo foreign exchange market late Wednesday, up from 117.10 yen from late Tuesday in New York. The euro rose US$1.2692 from US$1.2691.
Elsewhere:
BANGKOK: Thai shares ended higher, led by bargain-hunting in energy blue chips as global oil prices stabilized after recent sharp loss. The benchmark Stock Exchange of Thailand's SET index rose 4.40 points, or 0.6 percent, to end at 693.03.
JAKARTA: Indonesian shares ended higher, led by gains in heavyweight Telkom and rival Indosat on hopes of strong nine-month earnings. The Jakarta Stock Exchange Composite index ended up 22.95 points, or 1.5 percent, to finish at a four-and-half month closing high of 1,523.06.
KUALA LUMPUR: Malaysian shares ended flat late as gains by some media and retail-favored technology stocks offset losses in second-liners. The weighted Composite Index of 100 blue-chip stocks rose 0.66 point, or 0.07 percent, to close at 966.32, off an intraday high of 967.99.
MANILA: Philippine shares advanced for a second day, bolstered by a rally on Wall Street overnight and declining world crude prices. The benchmark 30-company Philippine Stock Exchange Index rose 12.23 points, or 0.5 percent, to 2,556.71, adding to Tuesday's 0.5 percent gain.
MUMBAI: Indian shares tracked buoyant Asian and U.S. markets to end higher, led by banking and index heavyweight Oil and Natural Gas Corp. The Bombay Stock Exchange's 30-stock Sensitive Index, or Sensex, rose 45.72 points, or 0.4 percent, to 12,366.91.
SEOUL: South Korean shares climbed, with banks leading the gains thanks to attractive valuations following the sector's recent underperformance compared with the main index. The main Korea Composite Stock Price Index, or Kospi, rose 1.2 percent, or 16.06 points, to 1,360.03.
SHANGHAI: Chinese stocks rose, reversing losses over the past three sessions, but the market's upside was capped by concerns a massive initial public offering by Industrial & Commercial Bank of China will strain liquidity. The benchmark Shanghai Composite Index gained 0.7 percent to 1,725.04 after falling 1.6 percent over the past three sessions.
SINGAPORE: Singapore's shares rose higher than expected to reach a four-month high Wednesday with gains seen in the property, banking and technology sectors, following Wall Street's strong overnight performance. The Straits Times Index rose 31.9 points, or 1.3 percent, to 2,557.9.
SYDNEY: Australian stocks surged, driven by a strong lead from U.S. markets overnight and on gains in resources stocks. The benchmark S&P/ASX200 index rose 103.6 points, or 2.1 percent, to 5,093.2.
TAIPEI: Taiwan's shares rose slightly, led by construction and property firms after the Taipei city government decided to open up more land for development. The Weighted Price Index of the Taiwan Stock Exchange rose 44.52 points, or 0.7 percent, to 6,946.27.
WELLINGTON: New Zealand's markets were buoyed by merger and acquisition activity as Australia's Woolworths Ltd. revealed it had bought 10 percent of discount retailer The Warehouse Group. The benchmark NZX-50 rose 46 points, or 1.3 percent, to 3,561.71.


Updated : 2021-10-17 04:41 GMT+08:00