HONG KONG, Nov 27: Asian stocks were higher on Thursday following the biggest rate cut in China for a decade and despite a raft of data from the United States that points to a recession in the world’s biggest economy.
Beijing announced late Wednesday a 108 basis point reduction in its lending rate, the fourth since mid-September, as it tries to boost its lagging economy, which has been caught up in the worst global financial crisis in decades.
The move followed a pledge by the US government to provide $800 billion to help unfreeze the country’s credit markets and reignite economic growth in the world’s biggest economy.
A $259 billion package was also announced by the EU to kickstart its flagging economy, a major market for Asian exporters.
Tokyo rose by 1.95 per cent, Hong Kong and Sydney added 1.4 per cent and Taipei surged 4.26 per cent, while Seoul jumped 3.3 per cent. Singapore stayed flat.
Markets had opened sharply up on the rate China cut but fears about the global economy set in, while security issues were brought to the fore after a series of attacks in India’s financial hub Mumbai left more than 100 dead.
A top official said a number of indicators suggested the Chinese economy had worsened in November.
Japanese consumer electronics giant Panasonic Corp. slashed its net profit forecast for the current financial year by 90 percent due to weak sales.
Automakers announced more layoffs to cope with the industry slump.
Mitsubishi Motors Corp. said it would cut 1,100 jobs in Japan while Subaru-maker Fuji Heavy Industries said it would axe 800 jobs.
TOKYO: Japanese share prices edged 1.95 per cent higher.
The Nikkei rose 160.17 points to 8,373.39. The broader Topix index of all first section issues edged up 11.81 points, or 1.45 per cent, to finish at 829.03.
Share prices also got support from hopes of fresh steps by US president-elect Barack Obama to shore up the ailing US economy, dealers said.
Panasonic fell 4.7 per cent to 1,284 yen.
Carmakers were also under pressure. Nissan Motor slid 2.7 per cent and Toyota Motor by 1.2 per cent.
HONG KONG: Hong Kong shares closed 1.4 per cent higher.
The benchmark Hang Seng Index was up 182.61 points to 13,552.06, after trading between 13,332.93 and 13,930.91.
The index rose as much as 4 percent at one point but gave up some gains as investors took Beijing’s aggressive policy as a signal that China’s economy may be slipping fast.
Turnover was 50.23 billion Hong Kong dollars (6.44 billion US).
Bank of Communications climbed 3.6 per cent, while ICBC rose 1.6 per cent and smaller peer Bank of China advanced 2.2 per cent.
SYDNEY: Australian shares closed up 1.4 per cent.
The benchmark S&P/ASX200 rose 48 points to 3,588, while the broader All Ordinaries was up 48.6 points at 3,528.2.
A total of 1.29 billion shares valued at $4.7 billion (3.1 billion US) was traded.
Rival Rio Tinto rose 2.0 per cent to 42.85.
Newcrest Mining was up 2.64 per cent to 25.66.
SINGAPORE: Shares closed flat, weighed down by heavyweight Singapore Telecommunications on worries over its Indian exposure after deadly attacks there, dealers said.
The blue-chip Straits Times Index closed down 0.61 points, or 0.03 per cent, at 1,710.52 on volume of 1.15 billion shares worth $952 million (629 million US).
KUALA LUMPUR: Malaysian share prices closed 1.6 per cent higher.
The Kuala Lumpur Composite Index rose 13.61 points to close at 869.98.
IOI Corp rose 5.4 per cent at 3.14 ringgit, Gamuda jumped 5.6 per cent to 1.70 ringgit and Bumiputra-Commerce gained 3.4 per cent to 6.05 ringgit.
WELLINGTON: New Zealand shares closed 1.17 per cent higher. The benchmark NZX-50 index rose 30.84 points to 2,668.74.
Market leader Telecom rose two cents to $2.38 and Contact Energy added six cents to 6.80.
Auckland International Airport rose one cent to 1.70 and Air New Zealand rose one cent to 86 cents.—AFP