Most of the Asian equity indices are trading in the green terrain following bounce back in Wall Street on growing confidence that US lawmakers will reach an agreement to avert the fiscal cliff. Chinese Shanghai surged by over half a percent in morning trade as sentiments got some support from signs that world’s second-largest economy is emerging from its deepest slump since the 2008 global crisis. Optimism was boosted by last weekend’s pledge by new Communist Party leaders to support a recovery with more spending and easy credit if needed.
Meanwhile, Japanese Nikkei continued to remained outperformer among the other regional peers, gaining over a percentage point following the weekend election victory of the Liberal Democratic Party, whose leader, Shinzo Abe, in line to become prime minister, is looking forward to shore up growth with higher public works spending.
Shanghai Composite surged 5.67 points or 0.73% to 2,176.01, Hang Seng rose 41.36 points or 0.18% to 22,554.97, KLSE Composite added 6.74 points or 0.41% to 1,655.32, Nikkei 225 soared 128.28 points or 1.31% to 9,957.16, Straits Times gained 9.05 points or 0.29% to 3,167.75 and KOSPI Composite was up by 5.19 points or 0.26% to 1,988.26.
On the flip side, Jakarta Composite declined 16.55 points or 0.38% to 4,299.31, Taiwan Weighted was down by 1.76 points or 0.02% to 7,629.52.
