Global stocks higher
Tuesday, 21 August 2007
LONDON, Aug 20 (Agencies): Investors boosted stocks and moved back into other riskier assets Monday as immediate fears of a credit crunch waned following the US Federal Reserve's confidence-building move last week.
Asian stocks rallied the most in three years.
European stocks trimmed some earlier gains but stood about 1.0 per cent higher, adding to a 2.3 per cent gain on Friday. Asia equities soared earlier, with Japan's Nikkei average recording its biggest one-day gain for 13 months.
US stocks opened modestly higher Monday, extending big gains made Friday after the Federal Reserve's cut in the discount rate.
In early trading Monday, the Dow Jones industrial average was 37 points higher, the Nasdaq gained 8 points, and the S&P 500 rose 4 points.
Stocks jumped Friday after the Fed cut the overnight interest rate it charges to member banks, known as the discount rate.
The Fed's move Friday lifted overseas stocks on Monday. In Japan, the benchmark Nikkei index gained 3 percent, rebounding from a brutal week. European markets were modestly higher at midday.
The Nikkei 225 Stock Average's 3 per cent gain was the biggest in a year, and the 4.6 per cent increase in Australia's S&P/ASX 200 Index the largest since October 1997.
The Hang Seng Index jumped 5.9 per cent, the most in almost nine years, after China's government said it will trial a program enabling individual investors to buy Hong Kong stocks directly.
Pakistan was the region's only market to decline today, while the Philippines was closed for a holiday. South Korea's Kospi surged a record 93.20 points to 1,731.27 and China's CSI 300 Index rose 5.6 per cent to 4,885.43, a new high.
Today's rebound in Asian markets fueled speculation investors will have more confidence to borrow the yen to buy higher-yielding assets, helping weaken Japan's currency. The yen fell to a low of 155.95 per euro from 154.10 late in New York on Aug. 17, and 115.50 per dollar from 114.36.
Asian stocks rallied the most in three years.
European stocks trimmed some earlier gains but stood about 1.0 per cent higher, adding to a 2.3 per cent gain on Friday. Asia equities soared earlier, with Japan's Nikkei average recording its biggest one-day gain for 13 months.
US stocks opened modestly higher Monday, extending big gains made Friday after the Federal Reserve's cut in the discount rate.
In early trading Monday, the Dow Jones industrial average was 37 points higher, the Nasdaq gained 8 points, and the S&P 500 rose 4 points.
Stocks jumped Friday after the Fed cut the overnight interest rate it charges to member banks, known as the discount rate.
The Fed's move Friday lifted overseas stocks on Monday. In Japan, the benchmark Nikkei index gained 3 percent, rebounding from a brutal week. European markets were modestly higher at midday.
The Nikkei 225 Stock Average's 3 per cent gain was the biggest in a year, and the 4.6 per cent increase in Australia's S&P/ASX 200 Index the largest since October 1997.
The Hang Seng Index jumped 5.9 per cent, the most in almost nine years, after China's government said it will trial a program enabling individual investors to buy Hong Kong stocks directly.
Pakistan was the region's only market to decline today, while the Philippines was closed for a holiday. South Korea's Kospi surged a record 93.20 points to 1,731.27 and China's CSI 300 Index rose 5.6 per cent to 4,885.43, a new high.
Today's rebound in Asian markets fueled speculation investors will have more confidence to borrow the yen to buy higher-yielding assets, helping weaken Japan's currency. The yen fell to a low of 155.95 per euro from 154.10 late in New York on Aug. 17, and 115.50 per dollar from 114.36.