Most major Asian share markets rose on Thursday, lifted by banks and financials after the US government outlined a plan to rescue battered bond insurers and stave off a fresh round of billion-dollar writedowns.

Growing expectations that another swingeing interest rate cut from the Federal Reserve next week - coming on top of this week's emergency 75 basis-point slash - to stabilise the world's top economy also lent support to markets.

The mood remained wary, however, as investors still chewed over the prospect of a US recession.

'What the market really needs is steady, long-term measures that will promote overall investment, not just emergency measures,' said Mr Hiroichi Nishi, general manager at the equity division of Nikko Cordial Securities.

New York's insurance regulator pressed major banks on Wednesday to put up billions of dollars to support ailing bond insurers, but banks are reluctant to open their chequebooks, people briefed on the matter said.

The news pushed the Dow industrial average and S&P up more than 2 per cent by the close. That marked a sharp turnaround from earlier in the day, when the Dow and the S&P were each down more than 2 per cent.

SINGAPORE

Singapore's benchmark Straits Times Index rose 2.94 per cent at open trade on Thursday after Wall Street snapped a five-day nosedive with the Dow Jones Index posting big gains, as optimism over a White House financial stimulus package infused the market.

The Straits Times Index was up 87.80 points, at 3,071.42, led by gains in financial stocks such as Singapore Exchange and top lender DBS Group.

Up to 51.3 million shares exchanged hands. Gainers beat losers 227 to 22.

Shares of Chinese companies such as Cosco Corp, Yangzijiang and JES International soared on news that Chinese banks will be allowed to invest in the city-state's stocks.

The Chinese and Singapore governments have signed an agreement allowing the mainland banks to buy into Singapore stocks through the 'qualified domestic institutional investor' (QDII) scheme.

KUALA LUMPUR

Share prices on Bursa Malaysia rebounded sharply higher in early trading today in line with the marked recovery in regional markets yesterday after the US cut interest rates in a bid to prop up its economy, dealers said.

At 9.15am Singapore time, the benchmark Kuala Lumpur Composite Index (KLCI) increased 39.07 points to 1,393.55 after opening higher by 46.77 points at 1,401.25.

Dealers said bargain hunters were in the market to snap up valuable stocks as they took the cue from gains on Wall Street.

HONG KONG

Hong Kong blue chips rose 1.3 per cent on Thursday as Wall Street gains boosted confidence, prompting investors to buy large-caps like HSBC Holdings, which took heavy beatings earlier this week.

The benchmark Hang Seng Index opened at 24,396.85, but the gains quickly evaporated as investors sold into strength. The index was flat at 10.03am Singapore time.

SHANGHAI

Chinese share prices opened mixed in early trade on Thursday, with the Shanghai bourse down after the government announced a fifth consecutive year of double-digit economic growth, dealers said.

They said the Shanghai market opened higher following a dramatic mid-session rally on Wall Street. But it soon turned amid concerns over possible tightening policies after Beijing announced 11.4 per cent economic growth for 2007.

The benchmark Shanghai Composite Index, which covers both A and B shares, fell 14.39 points or 0.31 per cent to 4,688.66.

The Shanghai A-share Index lost 15.22 points or 0.31 per cent to 4,920.78 points while the Shenzhen A-share Index added 13.44 points or 0.91 per cent to 1,488.33.

TOKYO

Japanese share prices rose 1.44 per cent in Thursday's morning session, regaining the symbolic 13,000-point level after a long-awaited rebound on Wall Street, dealers said.

Dealers expressed hope that global markets were bottoming out after a week of hefty losses following a surprise interest rate cut by the US Federal Reserve aimed at reducing the chance of recession.

The Tokyo Stock Exchange's benchmark Nikkei index was up 184.86 points at 13,013.92 at the end of the morning session.

The index slipped below the 13,000-point level two days ago for the first time since September 2005.

The broader Topix index of all-first section shares was up 23.96 points or 1.92 percent at 1,273.89. -- AFP, REUTERS

Is this article useful to you?