ASIAN stocks jumped on Monday, surging after the US Federal Reserve slashed a key US bank discount rate, with Singapore's Straits Times Index surging 6.12 per cent at close.
Singapore share prices soared on Monday, mirroring sharp gains in regional bourses, dealers said. The Straits Timex Index closed 191.67 points higher at 3,322.38.
To help counter the credit market turmoil, the US central bank cut its discount rate by a half-percentage point to 5.75 per cent on Friday in a surprise move that sparked a rebound on Wall Street. It left its benchmark federal funds rate steady at 5.25 per cent.
The Fed also said 'downside risks to growth have increased appreciably,' dropping its views about inflation being a major concern and signalling a willingness to take more dramatic action to cushion the economy from tightening credit.
'With the Fed now pulling out all stops in order to head off a credit crunch, it's looking increasingly likely that we have seen the bottom in share markets,' said Shane Oliver, head of investment strategy at AMP Capital Investors in Australia.
'More importantly the panic selling in various markets over the last week is indicative of the sort of wash out often seen at or around market bottoms.'
SINGAPORE
Stocks rose the most in more than eight years after the Prime Minister raised the country's economic growth target.
Mr Lee Hsien Loong said on Sunday night that he expected the Republic's annual growth to increase as much as six per cent in the next five to 10 years. That's higher than the previous range of three to five per cent set in 2003.
At 2.30 pm, the Straits Times Index rose 5.3 per cent after Wall Street's rebound on Friday, in line with rallies in Asian markets.
The index was up 166.73 points at 3,297.44, with banks leading gains.
KUALA LUMPUR
Malaysian share prices closed closed 4.4 per cent higher in line with regional bourses, dealers said.
The Kuala Lumpur Composite Index (KLCI) closed up 51.84 points at 1,243.39.
HONG KONG
Hong Kong share prices soared 5.9 per cent Monday, alongside a massive regional rebound and enjoying the market's single biggest one-day points gain since 1998, dealers said.
They said the boost also came after China said it would allow individual investors to buy shares on the city's market for the first time.
The Hang Seng Index closed up 1,208.50 points at 21,595.63, off a low of 20,901.64 and a high of 21,608.34. Turnover was 105.33 billion Hong Kong dollars (S$20.6 billion).
CHINA
Chinese share prices surged 5.33 per cent to a record closing high Monday, amid a rally on global markets following the sell-off triggered by the US credit crunch, dealers said.
The benchmark Shanghai Composite Index, which covers both A and B shares listed on the Shanghai Stock Exchange, closed up 248.28 points or 5.33 perc ent to 4904.86 on turnover of 145.31 billion yuan (S$29.22 billion).
TOKYO
The Nikkei share average rallied to book its biggest one-day percentage gain in 13 months on Monday, rebounding from a plunge last week as the Federal Reserve's move to cut its discount rate eased fears about credit concerns and prompted buying across the board.
The Nikkei rose 458.80 points, or 3.00 per cent, logging its biggest percentage rise since July 2006, to 15,732.48.
The benchmark recouped some of its 5.4 per cent slide on Friday, which ended a week in which it lost 9 per cent, its biggest weekly drop in seven years.
The Topix was up 2.92 per cent, or 43.18 points, at 1,523.57, regaining some of the 9.4 per cent it lost last week, which was its biggest one-week fall since September 1990.
SEOUL
Shares closed 5.7 per cent on Monday, their biggest gain in over five years.
The Korea Exchange suspended some programme trading for the third time this year, following a surge in futures prices.
Programme trading refers to automatic computer-generated trades based on predetermined criteria, including the difference between futures prices and underlying shares.
The suspension lasted for five minutes from 10:14 am. (9.14 am Singapore time).
The benchmark Korea Composite Stock Price Index (Kospi) was 93.20 points higher at 1,731.27, its biggest one-day percentage gain since surging 7.6 per cent on Feb 14, 2002.
TAIPEI
Taiwan shares ended up 5.26 per cent on Monday, marking their biggest percentage gain in at least three years, led by heavyweights such as TSMC and Cathay Financial, after a surprise Fed rate cut sparked a US market rally.
The main Taiex shares index, which hit a three-month low in the previous session amid a global sell-off, rose 425.31 points to 8,515.60. Despite the gain, the index is still down about 13 per cent from a more than seven-year closing high reached on July 24. -- AFP, REUTERS
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