Most Asian stocks rise
Stock Investors in Asia seemed encouraged by governments measures to free up liquidity, including easing regulations for share buybacks and corporate financial reserve limits in different countries.
Indian stock market started with positive note and sustained buying in index heavy-weights, especially ICICI Bank helped benchmarks surge over 6 per cent Monday. Major interest was seen in banks, metals and IT stocks.
MOST Asian stock markets recovered on Monday after last week's historic sell-off as governments in Europe and beyond intensified efforts to stabilise the world's troubled financial system.
Hong Kong's Hang Seng Index, which tumbled more than 7 per cent on Friday, rose about 478.80 points higher, or 3.24 per cent, at 15,275.67.
In Australia, the S&P/ASX200 index was up 4.71 per cent in response to a government plan to guarantee bank and other lender deposits for three years. The benchmark plunged over 8 per cent on Friday, its biggest single-day fall ever.
South Korea's benchmark gained 2.8 per cent and Singapore's key stock measure was up 2 per cent. But indices in Shanghai and the Taiwan benchmark lost more than 3 per cent.
Japan's market, where the Nikkei 225 tanked nearly 10 per cent on Friday to close out its worst week in history, was closed for a public holiday.
The region's markets showed signs of life after leaders of the 15 euro zone countries unveiled measures on Sunday to prop up the region's ailing financial institutions. Under the plan, governments would guarantee new bank debt until the end of 2009, allow governments to help banks by buying preferred shares, and vowed to rescue important failing banks through emergency recapitalisation.
In the US, investors were waiting to see if the Treasury Department's newly announced plan to buy equity in troubled banks would help stabilise the volatility on Wall Street. Lawmakers have urged quick action by President George W. Bush on the effort, to be funded by the US$700 billion (S$1 trillion) bailout he signed Oct 3.
Investors were still highly cautious, though, worried about eroding economic conditions, shrinking company earnings and further market turmoil, analysts said. There could be more selling ahead if individual investors, spooked by the steep declines in stock prices, continue to yank money from mutual funds and asset managers.