HONG KONG (AP) – Asian stock markets rose robustly yesterday, with Hong Kong’s benchmark advancing more than five percent, as investors appeared encouraged by government efforts to help the global economy weather the financial crisis.
Across the region, markets seemed to shrug of more dispiriting economic data and focus on fresh stimulus plans.
Taking its lead from Wall Street’s recent rally, the Philippine Stock Exchange (PSE) closed sharply higher yesterday on continued bargain-hunting. This is the PSE’s fourth day of gains since nose-diving by 12.3 percent last week.
The main index rose 74.49 points or 3.8 percent to 2,025.58 while the broader all-share index advanced 40.89 points or 3.2 percent to 1,313.46.
The Korea Composite Stock Price added 2.5 percent after the government unveiled nearly $11 billion in new measures to protect South Korea from sliding into recession.
In Australia, the S&P/ASX 200 was up 3.5 percent despite troubling evidence of slowing manufacturing and retails sales, as traders anticipated further interest rate cuts from the country’s central bank on Tuesday.
Shanghai’s benchmark also gained even though a new report suggested Chinese manufacturing, the engine behind the country’s phenomenal growth, may be contracting.
Hong Kong’s blue-chip Hang Seng Index led the region’s benchmarks, climbing 691.31, or nearly five percent, to 14,659.98. Singapore’s key index also rose about five percent.
“I don’t think it’s a massive change in direction, more a case of a little more confidence going forward in massively oversold stocks and... global organized attempts to deal with the issues,” said Miles Remington, head of Asian sales trading at BNP Paribas Securities in Hong Kong.
Japanese financial markets were closed yesterday for a public holiday and due to reopen today.
The rise in Asian markets also lifted oil prices, which advanced 99 cents to $68.80 a barrel in Asian trade on the New York Mercantile Exchange.
Global stock markets could take direction from the US this week after the country’s presidential election on Tuesday helps fill in some blanks about how Washington might shape economic policy in the months ahead.
Investors will also keep an eye on US reports due on manufacturing, the service sector and employment in the world’s largest economy, and major Asian export market.
October was a brutal month for Asian markets, but ended on a more upbeat note. Hong Kong’s Hang Seng Index shed about 23 percent during the month amid worries that the global financial crisis would erode corporate profits as investors dumped shares to meet redemptions back home. The benchmark dropped as low as 11,015.84 last Monday – its worst close since May 2004 – but has sinced bounced back.
Wall Street ended the month with the Dow Jones industrial average adding 144.32, or 1.57 percent, to close Friday at 9,325.01. Stock index futures were up just under one percent.
The dollar gained ¥99.28 from ¥98.44 late Friday in New York, up sharply from the 13-year low of ¥90.89 touched Oct. 24. The euro was higher at $1.2849 from $1.2751.
Wall St’s lead
Analysts said investors apparently took their cue from Wall Street’s surge last Friday with sentiment boosted by expectations of positive third-quarter earnings results, dealers said.
Volume reached P2.67 billion.
Gainers outnumbered losers 89 to 90 while 25 shares closed unchanged.
“We’re basically following the Dow’s movement, which appears to be headed higher on optimism ahead of the (presidential) elections,” Nisha Alicer, analyst at DA Market Securities, told the Dow Jones Newswires.