Asian markets extend rally amid rising stimulus hopes

Stock markets in Asia continued to rally on Thursday with most markets in the region trading with notable gains of over a percent. Sentiments remained sanguine as market participants remained influenced by sharp rally overnight in US markets where the Federal Reserve stated that the US economy maintained a moderate pace of growth as factory output rose and the real - estate market improved. The markets also got buttressed by increasing hopes that central banks in US and Europe would employ monetary easing measures to revitalize their respective economies and avert a financial crisis. Meanwhile, German and European Union officials firmed up efforts to rescue Spain's troubled banks and eased concerns to some extent.

The benchmark in South Korea jumped over two and half a percent and remained the top gainer in Asian space while the equity indices in Hong Kong, Indonesia and Japan traded with gains of over a percent. The Japanese markets got a boost after yen deprecated against the US dollar and underpinned export oriented stocks. However, the Chinese markets traded on a flat note with a positive bias after government delayed plans to tighten bank capital rules to ensure lending support to its economy.

Shanghai Composite gained 3.60 points or 0.16% to 2,313.15, Hang Seng Index surged 236.16 points or 1.28% to 18,756.69, Jakarta Composite climbed 37.85 points or 0.99% to 3,879.18, KLSE Composite advanced 5.98 points or 0.38% to 1,575.41, Nikkei 225 soared 107.78 points or 1.26% to 8,641.31, Straits Times Index rose 4.03 points or 0.15% to 2,764.86, KOSPI Composite Index jumped 47.53 points or 2.64% to 1,849.38 and Taiwan Weighted ascended 34.74 points or 0.49% to 7,090.89.