Stock-Tax Cut Spurs China Indices

A reduction in the tax paid on share purchases in China sent shares surging in the late morning and afternoon trading sessions in China and Hong Kong on Wednesday, while Japanese investors continued to exercise on over buying.

China's Shanghai Composite Index rose 131 points, or 4.2%, to 3278.33, after Beijing announced that it would cut stamp duty to 0.1% on the purchase of every share, vs. 0.3% previously.

The new tax rate will take effect Sunday. In Hong Kong, the Hang Seng closed at a three-month high, up 350 points, or 1.4%, at 25,289.24. Japan's Nikkei gained 31 points, or 0.2%, to 13,579.16.

Market volume in Hong Kong was the highest for an up day so far in 2008, at HK$105.3 billion ($13.5 billion). ...