Overall session ends mixed though as SENSEX and Strait Times end in red
The Asian equity markets ended on a strong note today with the major benchmark indices in the region closing with handsome gains though the region failed to witness an across the board rally. The overall sentiment remained positive, tracking gains in Wall Street on Friday after the US government moved toward instituting a $700 billion program to buy up banks' illiquid mortgage-related assets, shoring up confidence in the global financial system. US Federal Reserve also announced today that Goldman Sachs and Morgan Stanley would become bank holding companies, a new status that will allow them to stay in business and protect customer accounts
China's securities regulator announced that listed firms would no longer need to obtain its prior approval for share buybacks. This helped the Shanghai stock index further as the index extended Friday's gains to finish the session with a sharp 7.8% gain. Broad based bottom fishing in banks and financials and properties on the new stimulus measures the securities regulator ushered in over the weekend to stabilize the stock markets proved key. Premier Wen Jiabao's pledge on Saturday to maintain the stability of the stock markets and the financial regime at large also ensured that the early gained were extended well into the session. The Shanghai Composite Index ended up 161.31 points, or 7.8% to 2,236.41.
In Japan, the Nikkei 225 Stock Average was higher 169.73 points, or 1.4%, to 12,090.59 while the broader Topix was 19.57 points, or 1.7%, higher to 1,169. The Ministry of Economy, Trade and Industry said that an index measuring industrial activity in Japan increased 0.8% in July 2008 compared to the previous month.
However, the other indices in the region showed a mixed pattern. Hang Seng ended at 19,632.20, up 304.47 points or 1.58% but the rest of the markets lagged behind. The Jakarta Composite Index ended at 1897.34, up 5.61 points or 0.30% while the KLSE composite added 2.92 points or 0.28% to close at 1028.62 points, giving away the intraday gains. Indian markets also gave away the initial gains and ended down 47.36 points or 0.34% at 13994.96 levels. Strait times also ended in red, paring about half a percent.
Soaring commodity prices seem to have come back in the contention as yet another worrying factor for the emerging economies in the region with light, sweet crude oil prices hitting a high of $107.80 - recording a gain of more than three dollars in the session. Copper prices also scaled up and with US dollar sliding sharply to two week low against the Euro, traders began to factor in a real possibility of commodity prices staying higher in near term.
The Asian equity markets ended on a strong note today with the major benchmark indices in the region closing with handsome gains though the region failed to witness an across the board rally. The overall sentiment remained positive, tracking gains in Wall Street on Friday after the US government moved toward instituting a $700 billion program to buy up banks' illiquid mortgage-related assets, shoring up confidence in the global financial system. US Federal Reserve also announced today that Goldman Sachs and Morgan Stanley would become bank holding companies, a new status that will allow them to stay in business and protect customer accounts
China's securities regulator announced that listed firms would no longer need to obtain its prior approval for share buybacks. This helped the Shanghai stock index further as the index extended Friday's gains to finish the session with a sharp 7.8% gain. Broad based bottom fishing in banks and financials and properties on the new stimulus measures the securities regulator ushered in over the weekend to stabilize the stock markets proved key. Premier Wen Jiabao's pledge on Saturday to maintain the stability of the stock markets and the financial regime at large also ensured that the early gained were extended well into the session. The Shanghai Composite Index ended up 161.31 points, or 7.8% to 2,236.41.
In Japan, the Nikkei 225 Stock Average was higher 169.73 points, or 1.4%, to 12,090.59 while the broader Topix was 19.57 points, or 1.7%, higher to 1,169. The Ministry of Economy, Trade and Industry said that an index measuring industrial activity in Japan increased 0.8% in July 2008 compared to the previous month.
However, the other indices in the region showed a mixed pattern. Hang Seng ended at 19,632.20, up 304.47 points or 1.58% but the rest of the markets lagged behind. The Jakarta Composite Index ended at 1897.34, up 5.61 points or 0.30% while the KLSE composite added 2.92 points or 0.28% to close at 1028.62 points, giving away the intraday gains. Indian markets also gave away the initial gains and ended down 47.36 points or 0.34% at 13994.96 levels. Strait times also ended in red, paring about half a percent.
Soaring commodity prices seem to have come back in the contention as yet another worrying factor for the emerging economies in the region with light, sweet crude oil prices hitting a high of $107.80 - recording a gain of more than three dollars in the session. Copper prices also scaled up and with US dollar sliding sharply to two week low against the Euro, traders began to factor in a real possibility of commodity prices staying higher in near term.
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