Asian stocks rise sharply on momentum from the Fed rate cut (MarketWatch) (19-03-2008)

HONG KONG (MarketWatch) -- Following the aggressive rate cut by the Fed, markets rebounded throughout Asia on Wednesday, although better-than-expected profit reports from U.S. investment banks also played a significant role in restoring some balance.

Financial shares gained, as Mitsubishi UFJ Financial Group in Tokyo, Australia & New Zealand Banking Group in Sydney and Industrial & Commercial Bank of China in Hong Kong recovered from recent lows.

In Shanghai stocks turned positive after five days, largely ignoring the central bank's decision to raise commercial banks' credit requirements by half a percentage point to a record high of 15.5%.

Japan's Nikkei 225 Average climbed 2.2% to 12,222.31 and the broader Topix index gained 2.5% at 1,192.64.

In Hong Kong, the Hang Seng Index advanced 2.6% to 21,942 and the Hang Seng China Enterprises Index, or H share index, soared 4.3% to 11,551.61.

China's Shanghai Composite jumped 3.6% to 3,799.01, relieved that the much-anticipated move had been announced. Elsewhere in the region, Australia's S&P/ASX 200 soared 3.5% to 5,262.90, New Zealand's NZX 50 index added 1.4% at 3,467.26, South Korea's Kospi climbed 2.2% to 1,622.94, Taiwan's weighted index rose 1.8% to 8,204.80 and Singapore's Straits Times index advanced 1.7% to 2,880.38.

Banking, insurance and brokerage shares led the charge, shaking off the weakness they have displayed recently in the wake of the global credit market crisis. Shares of Citigroup Inc. soared 12.5% and Mitsubishi UFJ jumped 4.3% in Tokyo. Shares of ANZ Banking Group advanced 5.6% and Macquarie Group surged 11.1% in Sydney.

Industrial & Commercial Bank of China jumped 5.2% in Hong Kong, United Overseas Bank gained 2.9% in Singapore, Cathay Financial Holding Co. added 3.9% in Taipei and Seoul-listed shares of Kookmin Bank advanced 2%.

Shares of China Merchants Bank Co. surged 9.1% in Hong Kong, after its profits more than doubled in the second-half of 2007 from a year-ago, beating estimates.

 Source: MarketWatch