Asian Stocks Surge On Fed And China Relief
Stock markets in Asia rallied on Thursday, amidst relief that the Fed did not increase interest rates more than the expected level of a quarter percent. Beijing’s strong support to stabilize financial markets also increased positive sentiment for Chinese equities while also triggering risk-on sentiment for equities in the region. Hong Kong’s Hang Seng Index was the top gainer with a 7 percent surge.
China’s Shanghai Composite Index gained 44.33 points or 1.4 percent to finish at 3,215.04. The Shenzhen Component Index rallied more than 2.4 percent to close at 12,289.97.
The Japanese benchmark Nikkei 225 Index soared 890.88 points or 3.5 percent to 26,652.89, tracking in a big way the gains on Wall Street. The Bank of Japan is expected to keep interest rates on hold in the current monetary policy review concluding on Friday amidst comments from BoJ Governor Haruhiko Kuroda that Japan was unlikely to see inflation hitting the 2 percent target, despite rising energy costs.
Toto was the top gainer with an 8.5 percent rally. Japan Steel Works, Fanuc Corp, Yaskawa Electric Corp, Fujikura etc gained more than 7 percent. East Japan Railway Co, Osaka Gas, Tokyo Gas, Tokyu Corp, all shed more than 1 percent.
The Hang Seng Index of the Hong Kong Stock Exchange gained 1413.73 points or 7 percent from previous close to finish trading at 21,501.23. The day’s high was at 21,501.23 and the low was at 20,786.69.
South Korea’s Kospi Index gained 35.28 points or 1.3 percent to close at 2694.51. The day’s trading range was between 2694.51 and 2714.00.
Australia’s S&P/ASX 200 Index closed trading at 7,250.80 after gaining 75.60 points or 1.05 percent.
Leisure business Pointsbet Holdings and payments provider Zip Co. both increased more than 10 percent. Medical devices company Polynovo added 8 percent from Wednesday’s levels. Novonix Ltd as well as EML Payments followed with a 7 percent uptick.
Mining stock Gold Road Resources was the greatest laggard with a more than 3 percent decline. Food retailing business Graincorp, Domino’s Pizza Enterprises, Invocare and telecommunications infrastructure business Chorus lost more than 2 percent.
The NZX50 of the New Zealand Stock Exchange added 12485 points or 1.1 percent to close at 11,998.96.
Film software business Vista Group International gained 8.19 percent. Polymer business Skellerup rallied more than 5 percent. Freightways, Auckland Airport and financial services provider Heartland Group rallied closed to 4 percent.
Utilities businesses Meridian Energy, Contact Energy, Trustpower and Genesis Energy declined around 2 percent. Fonterra Shareholders also dropped more than 2 percent.
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