The encouraging overnight leads from Wall Street have triggered a strong rally in stock markets across the Asian region, leading most markets in the region around a percent higher. A slew of encouraging developments such as overnight jump in US equities, encouraging US homebuilders’ confidence report and IMF’s plans to expand its lending capacity by as much as $500 billion in order to prevent fallout from the Euro-zone crisis and averting a global recession, bolstered investors risk taking confidence in the session. In addition, ongoing talks between Greece and its lenders spurred hopes for a deal that would pave the way for a separate agreement on IMF and EU funding, and help calm market fears of a wider crisis within the 17-nation euro zone.
The benchmark in Japan managed to extend its previous session’s gains as it traded with gains of over a percent on account of positive news from the IMF and encouraging earnings from Goldman Sachs. Barring the index in Singapore, which traded with over half a percent gains and all other indices in the region traded with gains of over a percent.
Shanghai Composite surged 20.51 points or 0.90% to 2,286.89, Hang Seng soared 219.47 points or 1.11% to 19,906.39, Jakarta Composite jumped 47.55 points or 1.20% to 4,025.68, Nikkei 225 garnered 100.93 points or 1.18% to 8,651.51, Straits Times climbed 15.30 points or 0.55% to 2,810.70 and Seoul Composite amassed 21.37 points or 1.13% to 1,913.76.
Equity markets in Taiwan remained shut on Thursday in observance of a public holiday.
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