Stock markets largely across the Asian region showed a kneejerk rally on the week’s last trading session after some heartening developments surfaced from the Euro-zone. All the equity indices in the region surged significantly on the back of reports indicating the leaders in Euro-zone decided to create a single supervisory body for euro zone banks and to allow them to be recapitalized directly by the currency area's rescue fund without adding to government debt. Moreover, European Council chairman Herman Van Rompuy also opined that nations that were meeting the terms with European Union budget policies would be able to access the bloc's temporary EFSF and permanent ESM rescue funds to support their government bonds on financial markets.
The benchmark in Hong Kong spurted over two percentage point and led the rally from the front while equity indices in Indonesia, Japan, Singapore, South Korea and Taiwan rallied around one and half a percent. The markets were trading on a subdued note in morning trades on skepticism of European Union leaders making progress on the region's debt crisis. The Japanese market suffered the most in early trades as the yen strengthened against all 16 major peers.
Shanghai Composite climbed 14.21 points or 0.65% to 2,210.05, Hang Seng Index jumped 403.47 points or 2.12% to 19,428.74, Jakarta Composite surged 59.12 points or 1.52% to 3,946.70, KLSE Composite advanced 6.63 points or 0.42% to 1,600.87, Nikkei 225 accumulated 133.21 points or 1.50% to 9,007.23, Straits Times Index soared 38.76 points or 1.36% to 2,885.58, KOSPI Composite Index garnered 13.12 points or 0.72% to 1,832.30 and Taiwan Weighted amassed 80.59 points or 1.12% to 7,250.20.