HONG KONG, Nov 25: Asian markets surged on Tuesday following a rally on Wall Street after the US government agreed a massive support package for banking giant Citigroup.

Washington’s pledge soothed investors’ fears of a collapse in the ailing financial icon and a repeat of the turmoil which followed the collapse of Lehman Brothers in September.

Tokyo, which was closed Monday for a public holiday, leapt 5.22 per cent, while Sydney soared 5.8 perncent and Hong Kong 3.4 percent.

The bailout eased risks to the entire financial system, said Hideaki Higashi, strategist at SMBC Friend Securities. A sense of relief spread as the rescue plan erased fears of a repeat of the Lehman shock.Seoul rose 1.4 per cent, Taipei 2.55 per cent and Singapore 2.3 per cent.

The World Bank forecast China’s economy will grow by just 7.5 per cent in 2009, the lowest level in 19 years, as global markets for the nation’s exports dry up.

The forecast, made in the World Bank’s quarterly update on China, is down from a previous estimate of 9.2 per cent, and would be the fourth lowest growth rate in the country since the launch of reforms three decades ago.

TOKYO: Japan’s Nikkei stock index soared 5.22 per cent.

The rescue calmed fears of a repeat of the financial turmoil seen in September following the implosion of Wall Street icon Lehman Brothers due to huge losses on toxic mortgage debts.

The Nikkei gained 413.14 points to 8,323,93. The broader Topix index of all first section issues climbed 28.89 points, or 3.60 per cent, to 831.58.

HONG KONG: Hong Kong share prices closed 3.4 per cent higher.

The benchmark Hang Seng Index surged 420.66 points to 12,878.6 and turnover was 41.23 billion Hong Kong dollars (5.29 billion US).

Standard Chartered rose 2.6 per cent, after Merrill Lynch said the bank’s 2.7 billion-US dollar rights issue eased investor concerns over capital.

SYDNEY: Australian share prices closed up 5.8 per cent.

The benchmark S&P/ASX200 rose 198.3 points to 3,623.4, while the broader All Ordinaries gained 186.6 points at 3,575.4.

A total of 1.53 billion shares valued at $5.4 billion (US$3.5 billion) was traded.

Clearly there was major buying of banks on close, Goldman Sachs JB Were senior sales trader Patrick Crabb told Dow Jones Newswires.

Newcrest gained 7.84 per cent to 25.45 and Newmont was up 6.92 per cent at 4.79.

Woodside Petroleum rose 11.41 per cent to 33.50.

SINGAPORE: Singapore shares closed up 2.03 per cent.

The main Straits Times Index finished 32.96 points higher at 1,653.25.

Volume totalled 1.09 billion shares worth 1.07 billion Singapore dollars (708 million US).

KUALA LUMPUR: Malaysian share prices closed 0.6 per cent higher.

The Kuala Lumpur Composite Index rose 4.79 points to close at 860.18.

IOI Corp rose 3.5 per cent to 2.94 ringgit, Parkson gained 6.1 per cent to 3.50 ringgit and Maybank was 1.4 percent stronger at 5.05 ringgit.

JAKARTA: Indonesian shares ended 1.1 per cent higher.

The Jakarta Composite Index rose 12.74 points to 1154.141. Coal miner Bumi Resources rose 20 per cent to 850 rupiah and Bank Danamon rose 9.6 per cent to 2,160, while Telkom lost 2.7 per cent to 5,450.

WELLINGTON: New Zealand share prices closed 2.31 per cent higher.

The benchmark NZX-50 index rose 59.39 points to 2,634.87.

Telecom gained eight cents to $2.28 , Fletcher Building was up 14 cents at 5.68, and Contact Energy rose 33 cents to 6.62.

Fisher & Paykel Healthcare rose three cents to 3.01 and Auckland Airport rose four cents to $1.70.

MUMBAI: Indian shares fell 2.33 per cent.

The benchmark 30-share Sensex fell 207.59 points to 6,695.53.—AFP