Asia Roundup: Eurozone hopes help lift marts

by **hlk** Wed 12 Oct 2011, 07:45

HONG KONG: Asian markets surged for a fourth straight day yesterday as dealers followed a rally on Wall Street sparked by a French and German promise to back up beleaguered eurozone banks.

Adding to the sense of optimism was a decision by France, Belgium and Luxembourg to bail out Dexia bank, the first lender to be dragged under by the European debt crisis.

Tokyo closed 1.95 per cent higher, or 168.06 points, at 8,773.68, Seoul ended 1.62 per cent higher, or 28.58 points, at 1,795.02, Sydney's S&P/ASX 200 gained 0.63 per cent, or 26.6 points, to 4,227.6 and Shanghai edged up 0.16 per cent, or 3.73 points, to 2,348.52.

Regional traders have been in a buying mood for several sessions as fears that a likely Greek default would be contagious eased slightly, thanks to top European figures saying everything possible would be done to protect other economies. That culminated Sunday with German Chancellor Angela Merkel joining French President Nicolas Sarkozy in saying they would help recapitalise the region's banks.

Despite the lack of any details on what they would do, the announcement gave investors some confidence that leaders were coming together to overcome a crisis many fear could spark another global financial downturn.

The Shanghai market was boosted by China's big four banks after sovereign wealth fund Central Huijin Investment bought stakes in each of them in a government move to shore up financial markets and boost confidence in the lenders.

Industrial and Commercial Bank of China surged 7 per cent, Bank of China rose 8.8 per cent, China Construction Bank was 6.4 per cent higher and Agricultural Bank of China climbed 14.7 per cent.

In other markets yesterday:

* Taipei added 2.59 per cent, or 186.75 points, to 7,398.71.

* Manila closed 1.70 per cent, or 68.69 points, higher at 4,109.27.

* Jakarta rose 80.67 points or 2.34 per cent to 3,531.75.

* Bangkok rose 2.34 per cent or 21.63 points to 944.80.

* Wellington rose 0.69 per cent, or 23.30 points, to 3,396.15. - AFP