Open

Coming up

Don't miss

Replay


LATEST SHOWS

TALKING EUROPE

Nigel Farage, Leader of the UK Independence Party

Read more

TALKING EUROPE

Endocrine disruptors: Is the EU doing enough to protect its citizens' health?

Read more

WEB NEWS

Israelis taking bomb shelter selfies

Read more

THE INTERVIEW

Pavlo Klimkin, Ukrainian Foreign Minister

Read more

THE INTERVIEW

Raed Fahmi, former Iraqi Minister of Science and Technology

Read more

IN THE PAPERS

Germany's World Cup title

Read more

FASHION

Paris, Haute Couture Fall/Winter 2014-2015

Read more

BUSINESS DAILY

Farnborough air show takes off but F-35 jet is grounded

Read more

IN THE PAPERS

Bastille Day celebrations

Read more

  • Boules and booze: Bastille Day à la New Yorkaise

    Read more

  • In pictures: 2014 World Cup historic moments

    Read more

  • Kremlin mulls 'retaliatory strikes' after death of Russian civilian

    Read more

  • France commemorates WWI centenary on Bastille Day

    Read more

  • Paris’s Bastille Day fireworks ‘a homage to victims’ of WWI

    Read more

  • Shipwrecked Costa Concordia successfully refloated

    Read more

  • Germany defeat Argentina 1-0 to win fourth World Cup title

    Read more

  • Senegal honours the soldiers who fought for France in WWI

    Read more

  • Clashes erupt in Paris as thousands march to support Palestinians

    Read more

  • Thousands flee northern Gaza after Israeli warning

    Read more

  • Major differences remain as deadline looms in Iran nuclear talks

    Read more

  • Rival Libyan militias exchange heavy fire at Tripoli airport

    Read more

  • French military to extend Mali 'counterterrorism' operations into Sahel

    Read more

Asian stocks rise in early trade

©

Text by AFP

Latest update : 2008-12-10

Asian stocks edged higher in early trade after world leaders unveiled plans for a series of summits aimed at tackling the global financial crisis.

View our special report: 'Capitalism on the brink?'

  

Asian stocks edged higher in early trade on Monday after world leaders unveiled plans for a series of summits aimed at tackling the global financial crisis.

In South Korea, shares rallied after the government announced a 130 billion dollar package to shore up the country's troubled banking sector.

While it is too early to say the worst of the financial turmoil is over, there are tentative signs "we could be approaching a temporary reprieve," said analysts at JPMorgan.

Bargain-hunting boosted markets in the Asia-Pacific region at the start of the week.

Sydney stocks were up 2.7 percent by noon, while Japan's Nikkei index added 0.53 percent by the lunch break and Hong Kong shares opened 2.2 percent higher.

Seoul shares gained 1.3 percent at the open after South Korea said it would guarantee up to 100 billion dollars on foreign borrowing by its banks and supply additional funds to ease a dollar shortage.

Investors cautiously welcomed US President George W. Bush's announcement that world leaders plan to hold a series of summits aimed at reforming the global financial system.

The proposed summits have "contributed to creating a climate in which investors can have positive expectations," said Kazuhiro Takahashi, general manager at Daiwa Securities SMBC.

But he added: "Markets are still surrounded by uncertainty."

Governments have pumped billions of dollars into troubled banks in recent weeks while central banks have injected huge amounts of cash into money markets in an effort to keep credit flowing and prevent a financial system meltdown.

Dealers said that while stocks were much cheaper than just a few weeks ago, investors remained worried about the impact of the financial crisis on economic growth and corporate earnings.

"Markets are still on edge, and the fragile stability could easily be shattered," said analysts at RBC Capital Markets.

There are growing fears of recessions in the United States, Europe and Japan, while China reported Monday that its economic growth slowed to 9.0 percent in the third quarter of 2008.

In New York, the Dow Jones Industrial Average shed 1.41 percent on Friday at the end of another volatile week that saw the blue-chip index gain 4.7 percent after a 18 percent plunge the prior week.

On Sunday, the Dutch government announced that it would inject 10 billion euros (13.4 billion dollars) into banking giant ING.

The financial crisis also led to the ouster of the top brass at French bank Caisse d'Epargne following a 600-million-euro loss in derivatives trading earlier this month as world share markets were sliding.

On the foreign exchange market, the dollar rose to 101.75 yen in early Asian trade, up from 101.63 yen late Friday in New York. The euro rose to 1.3462 dollars from 1.3408.

-- Dow Jones Newswires contributed to this story. --
 


 

 

Date created : 2008-10-20

Comments

COMMENT(S)