Posted on 10/30/2008 12:13:05 AM PDT by TigerLikesRooster
Regional stocks jump on central banks' response
China, Taiwan, Hong Kong cut rates; Seoul, Singapore, Fed agree to swaps
By V. Phani Kumar, MarketWatch
Last update: 12:46 a.m. EDT Oct. 30, 2008
HONG KONG (MarketWatch) -- Asian markets surged Thursday as investors went on a buying spree after central banks responded strongly to slowing economic growth and turmoil in financial markets by reducing interest rates or boosting liquidity of U.S. dollars.
South Korean stocks rocketed and Singaporean shares extended gains into a third straight session after their central banks opened a swap facility with the U.S. Federal Reserve that will give them access to U.S. dollar liquidity of up to $30 billion.
Stocks in Hong Kong, Taiwan and mainland China jumped after their central banks lowered interest rates in moves that coincided with the Fed's half-point rate cut overnight. Tokyo shares were boosted by hopes the Bank of Japan may order a rate cut of its own for the first time since 2001.
South Korean stocks gained the most, with the Kospi soaring12.2% to 1,086.96. Singapore's Straits Times Index surged 7% to 1,788.66.
"South Korea, rightly or wrongly, is viewed as the economy in Asia that would be most vulnerable to capital flight, given its higher level of external debt," said Glenn Maguire, chief economist for Asia at Societe Generale.
"Corporates have had trouble rolling over debt, so I think [the swap agreement is] an appropriate step that will clearly be a positive for Korea," he added.
(Excerpt) Read more at marketwatch.com ...
Symbol | Name | Last Trade | Change | Related Info |
---|---|---|---|---|
^AORD | All Ordinaries | 3,957.30 |
151.50 (3.98%) | Components, Chart, More |
^SSEC | Shanghai Composite | 1,760.17 |
40.36 (2.35%) | Chart, More |
^HSI | Hang Seng | 13,903.66 |
1,201.59 (9.46%) | Components, Chart, More |
^BSESN | BSE 30 | 9,044.51 |
36.43 (0.40%) | Chart, More |
^JKSE | Jakarta Composite | 1,178.41 |
64.78 (5.82%) | Components, Chart, More |
^KLSE | KLSE Composite | N/A | 0.00 (0.00%) | Components, Chart, More |
^N225 | Nikkei 225 | 9,029.76 |
817.86 (9.96%) | Chart, More |
^NZ50 | NZSE 50 | 2,762.82 |
17.22 (0.63%) | Components, Chart, More |
^STI | Straits Times | 1,802.85 |
131.65 (7.88%) | Components, Chart, More |
^KS11 | Seoul Composite | 1,084.72 |
115.75 (11.95%) | Components, Chart, More |
^TWII | Taiwan Weighted | 4,683.64 |
277.12 (6.29%) | Chart, More |
Ping!
How sad - will we get a market rally in the last few pre-election days?? Looks awful for McCain/Palin!
/s
DJIA up 675 this week.
yitbos
??? Is this our confiscated tax money we're talking about?
This is a round-about way of your money going into pockets of bleeding financial institutions via S. Korean market.
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