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Asian markets soar on possible financial crisis fix

Asian stock markets soar as a news of a US plan to rescue banks from risky mortgage debt brings hope of a letup in the world's worst financial crisis.

  • AP
  • Published: 12:05 September 19, 2008
  • Gulf News

  • Stock measures in China, Taiwan, South Korea and Australia were also sharply higher.
  • Image Credit: Gulf News Archive

Hong Kong: Asian stock markets soared Friday as a news of a US government plan to rescue banks from risky mortgage debt brought hope of a letup in the world's worst financial crisis in decades.

Japan's Nikkei 225 average advanced 3.2 per cent to 11,859.75, while Hong Kong's Hang Seng Index shot up nearly 7 per cent to 18,836.90.

Stock measures in China, Taiwan, South Korea and Australia were also sharply higher.

After a week of steep losses, regional markets were lifted partly by overnight gains on Wall Street, where the Dow Jones industrial average surged 410.03, or 3.86 per cent, to 11,019.69.

Investors also were reacting to news that the US government was seeking the power to rescue banks by buying distressed assets at the heart of the financial system's crisis that has brought down Wall Street giants Lehman Brothers, Merrill Lynch and Bear Stearns.

Details of the plan were still being worked out, but US Treasury Secretary Henry Paulson emerged from a meeting on Capitol Hill to say he hoped to have a solution "aimed right at the heart of this problem."

The news powered Asian financials higher, with China's biggest lender, Industrial & Commercial Bank of China Ltd, or ICBC, rising 14 per cent.

Banks in Japan and Australia also gained.

In currencies, the dollar climbed against the yen to 106.74.

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