Asian markets spurred by Wall Street gains
Asian markets accelerated further getting a boost from the yesterdays rally on Wall Street. The Asian markets advanced the most in seven weeks, led by banks and electronics makers, on speculation financial companies will be able to overcome a freeze in credit markets and shore up global economic growth, with financial stocks such as Mizuho Financial Group in Tokyo, DBS Group Holdings in Singapore and Ping An Insurance (Group) Co. of China in Hong Kong spiking up on optimism the worst in the ongoing global credit crisis was over.
The confidence stemmed from news of a planned capital rising by two banks UBS and Lehman Brothers Holdings Inc., which prompted a strong, rally on Wall Street overnight. The Dow Jones Industrial Average climbed 391.47 points, registering its eighth-biggest point jump ever; closing 3.2% up at 12,654.36. The S&P 500 index added 47.48 points gaining 3.6% to 1,370.18, while the Nasdaq Composite 83.65 points to 2,362.75.
The Nikkei 225 Average jumped 4.2% to 13,189.36, also the largest increase since Feb. 14, boosted by a gain in the dollar against the yen. The broader Topix index gained 4.2% to 1,282.07.
In Hong Kong, the Hang Seng Index rise 3.2% to 23,872.43, while the Hang Seng China Enterprises Index climbed 4.7% to 12,807.35.
Australia's S&P/ASX 200 added 2.6% to 5,502.90, South Korea's Kospi advanced 2.4% to 1,742.19, New Zealand's NZX 50 index climbed 1.7% to 3,592.79 and China's Shanghai Composite rose up by 0.56% to 3,347.88.
Elsewhere, Taiwan's Weighted Index gained 2.2% to 8,605.32 and Singapore's Straits Times Index rallied 2.5% to 3,123.95.
In the afternoon trading, India's Sensex was up by 1.2% to 15,815.21, while the broader S&P CNX Nifty index gained 0.7% to 4,772.30.
The dollar was quoted at 101.75 yen in Asian currency trading, compared with 101.85 yen in New York late Tuesday and 99.64 yen late Monday.
Crude oil for May delivery slipped as much as 43 cents to $101.41 a barrel in electronic trading, after rising 60 cents to settle at $100.98 a barrel in regular trading Tuesday on the New York Mercantile Exchange.
The European shares extended the rally. The national indexes opened higher, with the U.K. FTSE 100 index up 0.1% to 5,861.60, the German DAX 30 index up 0.4% to 6,744.40 and the French CAC-40 index up 0.4% to 4,884.03.
On the data release side we had United Kingdom's construction sector registered a first decline in six years. The Chartered Institute of Purchasing and Supply (CIPS) said the purchasing managers index for the construction sector fell to 47.2 in March from 52.4 in February. The March reading is below 50 means it is the first time the construction sector has contracted since November 2001, the CIPS said. The survey shows new order volumes slipped into negative territory for the first time since October 1998 to hit a record low of 48.9.
Looking at the data release calendar the day is schedule to release producer price index for Euro zone accompanied by U.Ks money supply figures. In the evening we have ADP employment change for US accompanied by factory orders. However the focus will be on Bernankes testimony at Senate
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