HONG KONG, Jan 23: Asian shares closed mostly up on Wednesday after the US Federal Reserve unexpectedly slashed interest rates to shore up rocky investor confidence, with the Hong Kong market soaring over 10 per cent.
The Fed chopped rates Tuesday in a bid to shore up sentiment after global stock markets crumbled on fears of a looming US recession. It was the central bank’s first unscheduled cut since just after the September 11, 2001 attacks.
Analysts said the 75 basis point cut to 3.5 per cent appeared to calm markets in the short term but that its long-term effects are unclear and that the move may have come too late.
Hong Kong soared 10.7 per cent, erasing its record fall of nearly nine per cent on Tuesday. India was up more than five per cent, while Australia and Singapore both rose too.
TOKYO: Japanese share prices closed up 2.04 per cent, breaking a two-day streak of heavy losses after a surprise US rate cut, but the market pared early gains amid a spike in the yen, dealers said.
They said the market welcomed the hefty interest rate cut by the US Federal Reserve but grew more cautious in late trade on nagging concern about the outlook for the world’s largest economy.
Markets are feeling slightly more reassured now that the Fed cut rates and is expected to cut rates again next week, said Hirokazu Fujiki, equity strategist at Okasan Securities.
HONG KONG: Hong Kong share prices closed up 10.7 per cent, dealers said.
The rise after the Fed rate cut wiped out Tuesday’s record 8.7 per cent plunge, they said.
The Hang Seng index closed up 2,332.54 points at 24,090.17.
The Fed’s unexpected and aggressive rate cut has certainly lifted markets and somewhat eased fears of recession in the US, said Howard Gorges, vice chairman at South China Securities.
HSBC rose 11.3 per cent at 116.20, Hang Seng Bank was up 11.90 dollars at 149.90 and Bank of East Asia was up 3.75 dollars at 43.80.
SYDNEY: Australian share prices closed up 4.4 per cent, dealers said.
The benchmark S&P/ASX 200 rose 225.5 points to 5,412.3, while the broader All Ordinaries climbed 223.6 points to 5,445.6.
The market has reacted to the fact that the US didn’t sell off as much as our market had factored in yesterday, said Joe Youssef, a private client advisor at Macquarie Wealth Management.
SINGAPORE: Singapore share prices closed up 4.08 per cent, dealers said.
The blue chip Straits Times Index closed 117.07 points higher at 2,983.62 on volume of 2.37 billion shares worth 2.90 billion Singapore dollars (2.03 billion US).
JAKARTA: Indonesian share prices closed up 7.9 per ent, dealers said.
The Jakarta composite index closed up 181.75 points at 2,476.28.
Bumi Resources added 725 rupiah to 5,425. Conglomerate Astra International rose 2,500 to 25,000. Telkom advanced 450 to 8,850.
WELLINGTON: New Zealand share prices closed 0.23 per cent, dealers said.
The benchmark NZX-50 index was up 8.16 points at 3,615.30 at the close.
Telecom closed unchanged on 3.99 dollars, as was Fletcher Building on 9.95, while Contact Energy rose seven cents to 7.20.
MUMBAI: Indian share prices closed up 5.17 per cent, dealers said.
The benchmark 30-share Sensex index closed up 864.13 points at 17,594.07.
After nearly a week, investors saw some relief as the markets bounced back strongly reacting to the rate cut. We could, however, see volatility in days ahead, said Advait Date of BHH Securities.—AFP
