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Asian markets extend global rally on Citi news

 A man walks in front of an electronic stock board of a securities firm in Tokyo, Japan, Wednesday, March 11, 2009. The benchmark Nikkei 225 stock ave...

Japan Markets

A man walks in front of an electronic stock board of a securities firm in Tokyo, Japan, Wednesday, March 11, 2009. The benchmark Nikkei 225 stock ave...

Asian stock markets surged Tuesday, with Japanese shares jumping over 4 percent, after Wall Street staged a massive rally as news that Citigroup is turning a profit bouyed hopes the stricken financial sector can recover.
The region's lurch higher, led by banking shares, was a welcome reprieve from the depressing declines in global equities over the last few weeks.
But the relief was likely to be temporary as stocks, in the throws of the worst bear market in years, continue to grind lower in the coming months in search of a bottom.
"What you've seen today is mostly a technical bounce in markets after felling steeply recently, and I don't think this rally can be sustained," said Arjuna Mahendran, the Singapore-based head of Asian investment strategy for HSBC Private Bank, which manages some $494 billion in assets. "It's still far too early to predict that the global recession is over ... The fundamentals are simply not in place."
The catalyst was a letter from Citigroup Chief Executive Vikram Pandit saying the bank had operated at a profit for the first two months of this year, logging its best performance since the third quarter of 2007, the last time it booked a quarterly profit.
Investors, desperate for any good news about the ailing financial system, cheered the news about banking giant, which has lost so much money the government has been forced to extend billions in aid and take a 36 percent stake.
Japan's Nikkei 225 stock average shot up 303.88 points, or 4.3 percent, to 7,358.86, while Hong Kong's Hang Seng leapt 343.05 points, or 2.9 percent, to 12,033.08.
Elsewhere, South Korea's Kospi rose 28.91, or 2.7 percent, to 1,121.11. Australia's benchmark added 1.7 percent, Singapore's stock measure was up 1.5 percent and Taiwan's index advanced 2.2 percent.
Overnight, Wall Street posted its best performance of the year, with the Dow Jones industrials surging 379 points, or about 5.8 percent, to 6,926.49. The broader Standard & Poor's 500 index pushed higher by 43.07 points, 6.4 percent, to 719.6.
Oil prices were steady in Asian trade, with Light, sweet crude for April delivery up 14 cents at $45.85 a barrel on the New York Mercantile Exchange. The contract fell $1.36 to settle at $45.71 a barrel overnight.
The dollar weakened to 98.59 yen from 98.80 yen. The euro was weaker at $1.2660 from $1.2722.


Updated : 2021-07-31 11:53 GMT+08:00