Sun.Star Breaking News

HONG KONG — Japan’s market soared in early trade Tuesday, leading a second-day rally in Asian stocks after Wall Street staged a dramatic comeback from its worst week ever on optimism that government rescue efforts will fix the crippled global financial
system.

The benchmark Nikkei 225 index jumped 1,079.13 points, or 13.04 percent, to 9,355.56. The Japanese financial markets were closed Monday for a public holiday.

In Australia, the S&P/ASX200 index traded more than 5 percent higher as the government announced a plan to inject 10.4 billion Australian dollars (US$7.4 billion) to strengthen the country’s economy.

Markets in South Korea, Singapore, New Zealand and Taiwan also climbed 5 percent or more.

The Asian advance came after the Dow Jones industrial average gained more than 11 percent - its biggest one-day rally since 1933 - in a huge overnight rally as traders reacted with relief to efforts by the U.S. government to inject capital into banks and get lending flowing again. That followed signals that European governments were putting up nearly US$2 trillion to safeguard their own banks.

“The governments are ensuring that no matter what happens they’re not going to allow another major institution to fail,” said Nicole Sze, an investment analyst at asset manager Bank Julius Baer & Co. in Singapore. “What’s happened in the last 48 years is an extremely positive development. … You’re seeing a reversal of the panic selling, and we think a temporary bottom has been found.”

Oil continued to rise, with light, sweet crude for November delivery gaining US$1.94 to US$83.13 a barrel in Asian trade on the on the New York Mercantile Exchange. The contract fell US$3.49 to settle at US$81.19 overnight.

In currencies, the dollar climbed further against the yen to 102.69. (AP)

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