This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Asian Markets Chase U.S. Rally

Asian markets surged on Wednesday, as Wall Street's rally gave investors the impetus they needed to resume yen carry trade positions and buy heavily into the last week's declines.

Hong Kong and China led the giant rally, with the key indices soaring 4.9% each. The Hang Seng rose 1362 points, to 29,166, while the Shanghai Composite Index jumped 254 points, to 5412.

"There are quite a lot of discounts now in Hong Kong after the last few days," says Conita Hung, head of equities at Delta Asia Finance in Hong Kong. "Liquidity is still plentiful on the mainland and interest rates are still on a downtrend in the U.S. and Hong Kong. China is increasing [interest rates] but the increases are still quite low."

Hung has a year-end target of 33,000 for the Hang Seng, and says that property stocks in Hong Kong will be the major beneficiaries, while financials on the mainland are attractive buying opportunities as they are shielded from sub prime exposure.

"I expect the Hang Seng to reach a new record by the end of this year, but the market will still fluctuate quite a lot over the next one and a half months," adds Hung.

Chinese telecoms were the big gainers of the day in Hong Kong, as China Mobile (CHL) leapt 9.23%, to HK$140.80, China Unicom (CHU) gained 6.16%, to HK$15.44, and China Netcom (CN) rose 5.21%, to HK$21, while China Telecom (CHA) surged 8%, to HK$5.75.

Property stocks, which have been the most resilient to the recent sell-off, rose in tandem in today's trading in Hong Kong. Sun Hung Kai Properties (SUHJY) gained 2.3%, to HK$11.78, Cheung Kong Holdings (CHEUY) bounced 3.52%, to HK$149.80, while Hutchison Whampoa (HUWHY) and Henderson Land jumped 3.8% each, to HK$93.40, and HK$71.80, respectively.

Financials also fared well, with China Life Insurance (LFC) ending the day up 6.64%, to HK$45.75, while Ping An gaining similarly, by 6.51%, to HK$95.70. UBS upgraded its rating for China Life, to "buy" from "neutral", citing an expected growth in income from premiums of 20% in the fourth quarter vs. 6.7% so far this year. UBS also said China's largest insurer was making unrealized profits of 18 billion yuan

HSBC Holdings (HBC) rose 1.24%, to HK$139. In after hours trading, HSBC announced in London that the bank will have to write-down $1.4 billion more than was expected in the first two quarters of the year, due to losses incurred on sub prime mortgage loans. That's a total write-down of $3.4 billion for the third quarter vs. an expected $1 billion. Many say the extent of the loss may give an indication of sub prime weakness to come.

In commodity stocks, despite a weakening price for crude, PetroChina (PTR) surged by 7%, to HK$15.74, on momentum buying, while Sinopec Shanghai Petrochemical (SHL) rose 4.53%, to 15.68 yuan, and Aluminum Corp of China (ACH) surged 10%, to 38.29 yuan.

The Nikkei, which fell on Monday to give away all of this year's gains, rose 347 points, or 2.47%, to 15,499, led by financial stocks and exporters, which benefited from the weakening yen.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs