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Asian stocks gain, but rise seen fragile

Asian stocks gain, but rise seen fragile

Asian shares rebounded yesterday from a three-session losing streak, while the safe-haven bid on the U.S. dollar retreated in moves seen as a momentary reprieve from concerns about the weak outlook for the global economy. Asian share gains were led by banks, including heavyweight HSBC. However, Japan's Nikkei average dipped lower to trade close to a 26-year intraday low, led by worries about the global competitiveness of the country's drugs sector following a US$41 billion merger in the United States. The MSCI index of Asia-Pacific stocks outside Japan advanced 1.2 percent after losing 1.7 percent over the previous three sessions.
The rise in Asian shares was led by a 2.5 percent gain in Hong Kong stocks. South Korea, Australia and Singapore posted more modest gains.
HSBC jumped 13.2 percent after news of its upcoming rights issue had led shares in the lender to slump on Monday to its lowest since 1995. Banking shares elsewhere also advanced, with South Korea's Woori Finance Holdings up 6.2 percent.
Though Asia has been spared the sort of writedowns of bad debt seen elsewhere, the global financial crisis is still spreading to regional economies, sparking concerns as companies cut borrowing and struggle to repay business loans.


Updated : 2021-04-13 07:30 GMT+08:00