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HONG KONG - Asian shares rallied on Wednesday as investors joined Wall Street's optimism that the worst news from US banks might be over and took heart from a strengthening dollar and falling oil prices.
Asian investors also saw the bright side of Merrill Lynch's US$5.7 billion (S$7.79 billion) write-down and share sale. The news had dented Asian stocks on Tuesday, but US shares rose as some investors took the view that the Merrill news may signal a possible turning point in the credit crisis.
The optimism was reinforced by a surprise gain in US consumer confidence and a rise in the dollar to a one-month high against a basket of currencies on Tuesday.
'Financial shares are moving higher after US banks led a rebound in the US market. On the whole, the market likes the yen trading in the 108s (versus the dollar) and the jump in US stocks,' said Mr Junichi Misawa, executive officer at STB Asset Management.
KUALA LUMPUR
The KLCI was at 1,159.94 up 9.14 points at closing. Gainers beat losers 380 to 229.
HONG KONG
Hong Kong share prices closed 1.9 per cent up on Wednesday, tracking a rebound on Wall Street and falling oil prices, dealers said.
The benchmark Hang Seng Index ended up 432.6 points at 22,690.6. The gains were led by oil refineries and airlines. Sinopec was up 4.94 per cent, PetroChina rose 2.4 per cent and Cathay Pacific surged 1.2 per cent.
SHANGHAI
Chinese stocks slipped on Wednesday, underperforming strong foreign markets, as concern about a slowing economy and heavy supplies of fresh equity lingered.
The benchmark Shanghai Composite Index was firm in the morning but ended down 0.48 per cent at 2,836.668 points, off an intra-day low of 2,822.188.
Falling stocks in Shanghai outnumbered gainers by 581 to 337, while turnover in Shanghai A shares shrank to a thin 48.8 billion yuan (S$9.77 billion) from Tuesday's 59.2 billion yuan.
TOKYO
The Nikkei average rose 1.6 per cent on Wednesday, with Matsushita Electric Industrial Co jumping on strong earnings results and financial shares gaining on easing US credit fears.
But investors dumped Sony Corp after it posted a bigger-than-expected fall in quarterly profit and cut its outlook, hurt by sluggish mobile phone sales and price competition.
The benchmark Nikkei ended up 208.34 points at 13,367.79. The broader Topix climbed 1.7 per cent to 1,302.99.
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