Asian indexes surged Monday, recovering some of their losses, as investors were buoyed by Wall Street advances after the Federal Reserve reduced a key interest rate. Japanese shares jumped on exporters such as Canon Inc. and Toyota Motor Corp., while financials such as SK Securities pulled South Korean shares higher.
In Tokyo, the Nikkei 225 index climbed 3.8% to 15,846.95, after it tumbled 874.81 points, or 5.4%, Friday to register its biggest single-day point fall in seven years. The broader Topix index jumped 3.7% to 1,535.19.
Shares of exporter companies were hurt Friday, after the Japanese yen rose to a 14-month high of 111.57 vs. the U.S. dollar in Asia before falling to 114.24 in New York the same day. On Monday, the dollar was quoted at 114.52 yen in Tokyo.
Also on Monday, the central banks of Japan and Australia reportedly injected cash into their respective local markets to ease a liquidity crunch. The Bank of Japan injected one trillion yen ($ 8.74 billion) via its regular operations as the overnight call rates, or the interest charged on inter-bank borrowings stood above its policy target of 0.5%, while the Reserve Bank of Australia injected A $ 3.34 billion ($ 2.65 billion), compared to its estimate of a daily deficit of A3.26 billion in the Australian banking system, according to wire-service reports.
South Korea's Kospi advanced 4.8% to 1,716.98, Australia's S&P/ASX 200 rose 2.9% to 5,834.60, New Zealand's NZX 50 added 2.3% to 3,984.48, Taiwan's Weighted index climbed 3.9% to 8,406.94, Singapore's Straits Times Index jumped 4.1% to 3,259.18 and China's Shanghai Composite advanced 2.7% to 4,779.95.
In Sydney, the rally was led by mining shares, with those of BHP Billiton jumping 6% and Rio Tinto's adding 4.4%.
On Friday, US stocks barreled higher Friday after the Federal Reserve did what Wall Street was clamoring for and cut its key discount rate a half %age point. The move quelled investors' credit worries at least for the time being and sent the Dow Jones industrials up about 230 points.
The Fed -- which had resisted lowering rates despite weeks of market volatility, and instead added nearly $ 120 billion in liquidity into the banking system -- cut its discount rate to 5.75 % from 6.25 %. The central bank acknowledged that the stock market turbulence that has pulled the Dow down by hundreds of points a day was posing a risk to economic growth.
The Dow surged 233.30, or 1.82 %, to 13,079.08.
The blue chip index stayed in positive territory the whole day, though trading was still volatile. The Dow rose more than 320 points in early trading, gave up more than half those gains, and then gained steam once more.
A series of triple-digit losses over the past couple of weeks has gnawed a 6 % dent in the Dow since it closed at a record 14,000.41 on July 19. The index, despite Friday's robust gains, finished down than 1 % for the week; the result of the heavy selling that preceded the Fed's move.
The Standard & Poor's 500 index rose 34.67, or 2.46 %, to 1,445.94, and the Nasdaq composite index rose 53.96, or 2.20 %, to 2,505.03.
Traders who bet on how the Fed might alter rates expect the central bank will lower the benchmark fed funds rate at its next meeting on Sept. 18. Some investors are hoping for a cut in that benchmark rate even sooner.
The pummeled stocks of mortgage lenders also saw significant increases. The most actively traded stock on the New York Stock Exchange, and one of its biggest %age gainers, was Countrywide Financial Corp. The home mortgage lender rose $ 2.48, or 13.1 %, to $ 21.43.
Energy and industrial companies also strengthened notably. The biggest gainers among the 30 Dow companies were aluminum producer Alcoa Inc. and oil company Exxon Mobil Corp., which both jumped more than 4 %.
Major European indexes recovered substantially after the Fed's announcement from steep declines in earlier trading. Britain's FTSE 100 rose 3.50 %, Germany's DAX index rose 1.49 %, and France's CAC-40 rose 1.86 %.
In Asian trading, which closed before the Fed lowered the discount rate, Japan's Nikkei stock average had plunged 5.42 % as the yen continued its climb against the dollar. The dollar briefly dipped below 112 yen for the first time in over a year, suggesting that some investors were taking their Japanese currency out of higher-yielding dollar assets.
The dollar was mixed against other major currencies. Gold prices jumped.
Advancing issues outnumbered decliners by about 7 to 1 on the New York Stock Exchange. Consolidated volume came to 5.01 billion shares, down from a record 6.13 billion Thursday.
The Russell 2000 index of smaller companies added 17.20, or 2.24 %, to 786.03.
Crude oil futures rose 98 cents to $ 71.98 a barrel. Traders have been tracking the path of Hurricane Dean, which is threatening to head west into the Gulf of Mexico, where many oil installations are located.
The Dow Jones industrial average ended the week down 160.46, or 1.21 %, at 13,079.08. The Standard & Poor's 500 index finished down 7.70, or 0.53 %, at 1,445.94. The Nasdaq composite index ended down 39.86, or 1.57, at 2,505.03.
In Tokyo, the Nikkei 225 index climbed 3.8% to 15,846.95, after it tumbled 874.81 points, or 5.4%, Friday to register its biggest single-day point fall in seven years. The broader Topix index jumped 3.7% to 1,535.19.
Shares of exporter companies were hurt Friday, after the Japanese yen rose to a 14-month high of 111.57 vs. the U.S. dollar in Asia before falling to 114.24 in New York the same day. On Monday, the dollar was quoted at 114.52 yen in Tokyo.
Also on Monday, the central banks of Japan and Australia reportedly injected cash into their respective local markets to ease a liquidity crunch. The Bank of Japan injected one trillion yen ($ 8.74 billion) via its regular operations as the overnight call rates, or the interest charged on inter-bank borrowings stood above its policy target of 0.5%, while the Reserve Bank of Australia injected A $ 3.34 billion ($ 2.65 billion), compared to its estimate of a daily deficit of A3.26 billion in the Australian banking system, according to wire-service reports.
South Korea's Kospi advanced 4.8% to 1,716.98, Australia's S&P/ASX 200 rose 2.9% to 5,834.60, New Zealand's NZX 50 added 2.3% to 3,984.48, Taiwan's Weighted index climbed 3.9% to 8,406.94, Singapore's Straits Times Index jumped 4.1% to 3,259.18 and China's Shanghai Composite advanced 2.7% to 4,779.95.
In Sydney, the rally was led by mining shares, with those of BHP Billiton jumping 6% and Rio Tinto's adding 4.4%.
On Friday, US stocks barreled higher Friday after the Federal Reserve did what Wall Street was clamoring for and cut its key discount rate a half %age point. The move quelled investors' credit worries at least for the time being and sent the Dow Jones industrials up about 230 points.
The Fed -- which had resisted lowering rates despite weeks of market volatility, and instead added nearly $ 120 billion in liquidity into the banking system -- cut its discount rate to 5.75 % from 6.25 %. The central bank acknowledged that the stock market turbulence that has pulled the Dow down by hundreds of points a day was posing a risk to economic growth.
The Dow surged 233.30, or 1.82 %, to 13,079.08.
The blue chip index stayed in positive territory the whole day, though trading was still volatile. The Dow rose more than 320 points in early trading, gave up more than half those gains, and then gained steam once more.
A series of triple-digit losses over the past couple of weeks has gnawed a 6 % dent in the Dow since it closed at a record 14,000.41 on July 19. The index, despite Friday's robust gains, finished down than 1 % for the week; the result of the heavy selling that preceded the Fed's move.
The Standard & Poor's 500 index rose 34.67, or 2.46 %, to 1,445.94, and the Nasdaq composite index rose 53.96, or 2.20 %, to 2,505.03.
Traders who bet on how the Fed might alter rates expect the central bank will lower the benchmark fed funds rate at its next meeting on Sept. 18. Some investors are hoping for a cut in that benchmark rate even sooner.
The pummeled stocks of mortgage lenders also saw significant increases. The most actively traded stock on the New York Stock Exchange, and one of its biggest %age gainers, was Countrywide Financial Corp. The home mortgage lender rose $ 2.48, or 13.1 %, to $ 21.43.
Energy and industrial companies also strengthened notably. The biggest gainers among the 30 Dow companies were aluminum producer Alcoa Inc. and oil company Exxon Mobil Corp., which both jumped more than 4 %.
Major European indexes recovered substantially after the Fed's announcement from steep declines in earlier trading. Britain's FTSE 100 rose 3.50 %, Germany's DAX index rose 1.49 %, and France's CAC-40 rose 1.86 %.
In Asian trading, which closed before the Fed lowered the discount rate, Japan's Nikkei stock average had plunged 5.42 % as the yen continued its climb against the dollar. The dollar briefly dipped below 112 yen for the first time in over a year, suggesting that some investors were taking their Japanese currency out of higher-yielding dollar assets.
The dollar was mixed against other major currencies. Gold prices jumped.
Advancing issues outnumbered decliners by about 7 to 1 on the New York Stock Exchange. Consolidated volume came to 5.01 billion shares, down from a record 6.13 billion Thursday.
The Russell 2000 index of smaller companies added 17.20, or 2.24 %, to 786.03.
Crude oil futures rose 98 cents to $ 71.98 a barrel. Traders have been tracking the path of Hurricane Dean, which is threatening to head west into the Gulf of Mexico, where many oil installations are located.
The Dow Jones industrial average ended the week down 160.46, or 1.21 %, at 13,079.08. The Standard & Poor's 500 index finished down 7.70, or 0.53 %, at 1,445.94. The Nasdaq composite index ended down 39.86, or 1.57, at 2,505.03.
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