Asian stocks close mostly higher
Tuesday, 14 August 2007
HONG KONG, Aug 13 (Agencies): Asian stocks closed mostly higher Monday in a cautious consolidation after central banks moved to bolster confidence in the financial markets following last week's rout.
Central banks from Japan to Australia and Europe to the United States injected liquidity into the system to fend of any credit crunch in response to the US sub-prime mortgage crisis.
Those mortgages, made out to risky borrowers, had underpinned a collapse in related hedge funds and sparked a massive global sell-off in equities, which has continued since late July.
Carefully-worded statements have also been issued by central bankers over the past two trading days seeking to assuage investor concerns and on the day some confidence was seen returning to the markets.
However, anxieties were expected to continue until the full extent of sub-prime losses is known.
Seoul, which endured falls of more than four per cent last Friday, was up 1.1 per cent on the day, Sydney gained 1.3 per cent and Shanghai surged 1.49 per cent to another record close and Mumbai was up 1.0 per cent.
Gains elsewhere were far more modest with Kuala Lumpur 0.70 per cent higher, Singapore was up 0.64 per cent, Hong Kong gained 0.45 per cent, and Jakarta rose 0.20 per cent.
However, Tokyo and Taipei closed little changed while Wellington was down 0.97 per cent and Manila shed 0.40 per cent.
Central banks from Japan to Australia and Europe to the United States injected liquidity into the system to fend of any credit crunch in response to the US sub-prime mortgage crisis.
Those mortgages, made out to risky borrowers, had underpinned a collapse in related hedge funds and sparked a massive global sell-off in equities, which has continued since late July.
Carefully-worded statements have also been issued by central bankers over the past two trading days seeking to assuage investor concerns and on the day some confidence was seen returning to the markets.
However, anxieties were expected to continue until the full extent of sub-prime losses is known.
Seoul, which endured falls of more than four per cent last Friday, was up 1.1 per cent on the day, Sydney gained 1.3 per cent and Shanghai surged 1.49 per cent to another record close and Mumbai was up 1.0 per cent.
Gains elsewhere were far more modest with Kuala Lumpur 0.70 per cent higher, Singapore was up 0.64 per cent, Hong Kong gained 0.45 per cent, and Jakarta rose 0.20 per cent.
However, Tokyo and Taipei closed little changed while Wellington was down 0.97 per cent and Manila shed 0.40 per cent.