Updated from 12:29 a.m. EDT
Stocks in Japan posted their biggest one-day gains on record and other markets in Asia closed higher Tuesday after stocks on Wall Street soared in trading on Monday.
Japan's Nikkei 225 stock average closed up 1171.14 points, or 14.2%, to 9447.57, after governments worldwide on Monday moved to shore up their banks. The Japanese market was closed Monday for a holiday.
In Hong Kong, the Hang Seng index rose 3.2%, while the S&P/ASX 200 index in Australia finished up by 3.7%. The Australian government announced a stimulus package Tuesday to strengthen the economy.
Stocks in Europe were rallying for a second-straight session on reports the U.S. government is planning to unveil new initiatives to address stalled credit markets, including a plan to buy equity stakes in banks.
The Wall Street Journal
reported the Bush administration plans to detail new initiatives Tuesday that are meant to help resolve the financial crisis. One component of the program may involve the
Department buying roughly $250 billion worth of equity in banks, the report said.
The FTSE 100 index in London rose 4.8%, while the DAX in Frankfurt rose 4.9%.
Stocks in the U.S. were indicating a higher opening Tuesday, after a session on Monday in which U.S. stocks followed the worst week in their history with an extraordinary rally, as governments worldwide initiated massive emergency aid packages for struggling banks.
Futures for the
rose 19.80 points to 1036.50, and were 29.55 points above fair value.
futures rose 18.75 points to 1477.25, and were 37.77 points above fair value.
The global efforts resulted in an all-day rally in the three major indices, each of which climbed more than 11%. The
Dow Jones Industrial Average
soared 936.42 points, or 11.1%, to 9387.61. The S&P 500 jumped 104.13 points, or 11.6%, to 1003.35. Nasdaq rose 194.74 points, or 11.8%, at 1844.25.
The single-day gain in the Dow marks its largest ever in terms of a closing-point rally and its fifth largest one-day gain on a percentage basis. The record run came just 11 trading days after the index registered its largest single-day point decline, a 777-point loss on Sept. 29. The rally breaks an eight-day losing streak for the Dow, but the index remains down 13.5% for the month and 29% year to date.