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Asian markets surge on Ben Bernanke remarks

27 Mar 2012 Evaluate

All the Asian equity indices barring Shanghai Composite snapped the day’s trade on higher note on Tuesday, with Japanese shares climbing to their highest level in more than a year after Federal Reserve Chairman Ben Bernanke signaled US interest rates may remain at the current ultra-low levels. Bernanke said that the central bank would likely keep stimulative policies in place despite improvements to the jobs market.

The sentiment was also boosted by speculation that Germany would be willing to agree to an increase in Europe’s bailout fund to 700 billion ($930 billion). Germany has to date resisted calls to increase the lending capacity of the fund beyond the planned 500 billion despite uncertainty over the ability of Rome and Madrid to repay their debts.

Meanwhile, Japanese Nikkei share average rose more than 2 percent to hit its highest level since the massive earthquake and tsunami on March 11 last year after Bernanke signaled that supportive policy may continue. However, Chinese benchmark -- Shanghai composite -- ended the trade lower by 0.15 percent after government data showing net income for the nation's largest industrial groups was down 5.2% from a year earlier in the first two months of 2012.

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

2,347.18

-3.42

-0.15

Hang Seng

20,951.22

282.36

1.37

Jakarta Composite

4,079.38

47.68

1.18

KLSE Composite

1,588.10

5.12

0.32

Nikkei 225

10,255.15

236.91

2.36

Straits Times

3,018.91

44.41

1.49

Seoul Composite

2,039.76

20.57

1.02

Taiwan Weighted

8,029.46

61.84

0.78

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