Asian shares cheered by Wall Street rally

The Pak Banker - - INTERNATIONAL BUSINESS/SPORTS -

Asian stocks rose on Thurs­day, with Hong Kong lead­ing the gains af­ter a rally on Wall Street cheered in­vestors and eased fears of a deep and last­ing global mar­ket rout. Com­ments from a se­nior US Fed­eral Re­serve of­fi­cial that the case for a rate rise in Septem­ber had weak­ened and up­beat durable goods data also boosted sen­ti­ment, push­ing up the dol­lar.

Tokyo stocks closed up 1.08 per­cent, or 197.61 points, to fin­ish at 18,574.44, while Seoul gained 0.73 per­cent, or 13.91 points, to 1,908 and Syd­ney rose 1.17 per­cent, or 60.53 points, to 5,233.30. Hong Kong rose 1.94 per­cent in af­ter­noon trad­ing and Shang­hai gained 0.81 per­cent.

Wall Street fin­ished sharply higher on Wed­nes­day, end­ing a six-day los­ing streak af­ter fears for China s stalling econ­omy wiped some $8 tril­lion from global share mar­kets. Asian shares had ended the day mixed af­ter a volatile ses­sion that saw Shang­hai veer wildly be­tween losses and gains as deal­ers weighed news that China s cen­tral bank had cut its key rates and moved to free up cash for banks. Thurs­day s gains came af­ter Wil­liam Dud­ley, the head of the New York branch of the Fed, said the rea­sons for a rate hike in Septem­ber had been damp­ened by the tur­moil grip­ping fi­nan­cial mar­kets. Deal­ers had feared that a rise in US rates -- their first in al­most a decade -- would heap pres­sure on the world econ­omy at a time when a slow­down in China is al­ready ex­pected to drag on growth. A bet­ter-than-ex­pected of­fi­cial US man­u­fac­tur­ing re­port show­ing or­ders for durable goods -- prod­ucts ex­pected to last at least three years -- jumped 2.0 per­cent in July also added to the op­ti­mism. "Strong durable goods num­bers out of the US and tempt­ing val­u­a­tions saw a phe­nom­e­nal bounce in all US eq­ui­ties," said An­gus Ni­chol­son at IG Mar­kets. "Wil­liam Dud­ley s speech seem­ingly put to bed any prospect of Septem­ber rate hikes... I think the mar­ket will largely be look­ing to­wards De­cem­ber as the most likely date if a rate hike hap­pens this year."

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