Asia: Financials and Exporters Surge
Asian stocks followed Wall Street's overnight rally Wednesday and climbed as financials and Japanese exporters surged on tentative expectations that the worst of the U.S. credit crisis may have passed. The dollar continued to strengthen against the yen, but oil rose to around $101.50.
Markets in Hong Kong and Japan hit one-month highs. The Japanese Nikkei was the biggest beneficiary of the rally, rising 533 points, or 4.2%, to 13,189.36, representing the first time the index has been above 13,000 points since the end of February. The Hang Seng leapt 735 points, or 3.2%, to 23,872.43, and in China, the Shanghai Composite Index gained 19 points, or 0.6%, to 3347.88.
"The herd mentality is back again," says Bryan Watkins, a trader for Daiwa Bank in Hong Kong. "Among energy plays, there is a little short squeezing back en vogue in here. Buyers kept reloading here by 500 thousand shares, feeding the market into the close."
China Watch: Gushing Over Gushan
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