All major Asian markets ended substantially higher as hopes of
global stimulus reversed sentiment after the previous week's doom
[caption id="attachment_67449" align="alignright" width="300"
caption="HSBC was up in spite of money-laundering allegations"]
Asian markets saw a relief rally with some short-covering and
bargain hunting in Tuesday trading after concerns over the economy
subsided somewhat thanks to stimulus rumors. Incidentally, it
was poor American economic news that propelled stocks higher, as
this only fueled speculation more stimulus is imminent. Federal
Reserve Chairman Ben Bernanke is due to speak later today, during
which investors are hoping for hints of more quantitative
Stocks in major Asian markets had been adversely affected by
fears over the viability of a recovery after
a number of Chinese companies warned of lower
over the past few trading sessions.
Hong Kong's Hang Seng (
) was the biggest mover on Tuesday, leaping 333 points, or 1.75%.
rally was broad-based
, with most sectors performing well. In particular, insurance firms
rose due to higher than expected premiums in June. As well, stocks
with exposure to the rail sector leaped higher because of the
assumption the Chinese government would increase investment in
infrastructure to bolster the economy. HSBC (
) finished higher
in spite of an impending investigation
pertaining to willful neglect of money-laundering.
Elsewhere in major Asian markets, the Shanghai Composite (
) finished higher, although it failed to match Hong Kong's
outperformance. The Chinese benchmark index finished 0.62% higher
on the back of property developers and brokerage firms. However,
analysts have warned
that poor corporate earnings and a lack of liquidity will likely to
continue to put downward pressure on the Shanghai market.
Other Asian markets also traded higher, with the Nikkei 225 (
) and the Taiex (
) both finishing up 0.35 and 0.52%, respectively.
With the euro recovering and U.S. futures pointing to a higher
open, stocks with Asian exposure trading on U.S. exchanges could be
in for a day of solid gains.