HONG KONG: Asian stocks rose Wednesday, taking their cue from Wall Street after U.S. Federal Reserve Chairman Ben Bernanke said the government had no plans to nationalize hard-hit banks and the recession might end this year.
Gains across the region were far more modest compared with U.S. markets, where the major benchmarks surged from near 12-year lows as banking shares led a broad rally.
Investors seemed heartened by Bernanke's comments that formally nationalizing the banks to ensure their viability "just isn't necessary." In recent days, fears of nationalization have weighed heavily on markets as investors worry the move would dilute share prices and turn over major decision to government regulators.
Analysts were skeptical the rally would last in the face of further deterioration in the global economy.
The U.S. government may end up nationalizing the banks, but do so piecemeal rather than in a single injection, said Dariusz Kowalczyk, chief investment strategist for SJS Markets in Hong Kong.
"The political difficulty of nationalization is hampering efforts to jump-start the recovery, and I think the rally (on Wall Street) yesterday was only temporary," Kowalczyk said.
In Japan, the Nikkei 225 stock average rose 94.26 points, or 1.3 percent, to 7,362.82 despite news the world's second-largest economy posted a record trade deficit in January, with exports tumbling 46 percent from a year earlier.
Benchmarks in Singapore and Taiwan were also higher, though Shanghai and Australian stock measures lost ground.
Overnight in New York, the Dow rose 236.16, or 3.3 percent, to 7,350.94. On Monday, the major indexes tumbled more than 3 percent, including the Dow, which fell 251 points and hit its lowest close since May 7, 1997.
In currencies, the dollar continued its advance, rising to 96.91 yen from 96.70 yen. The euro traded lower at $1.2812 from $1.2763.
In oil, light, sweet crude for April delivery was exchanging hands at $39.60 a barrel, down 36 cents. Overnight, the contract, staged a late-session rally to settle up $1.52 at $39.96 on the New York Mercantile Exchange.
No comments:
Post a Comment