World stock markets rebound as investors find value
Saturday, 22 November 2008
LONDON, Nov 21(Agencies): Most Asian and European markets rebounded today after sharp declines in recent days as investors scooped up battered financial and technology shares.
Major Asian benchmarks opened lower after Wall Street tumbled to multiyear lows overnight but climbed into positive territory in afternoon trading. Oil prices, which had fallen below $49 a barrel to three-year lows in early trading, also bounced back.
"After tanking for so many days there will always be a belief that you just can't draw a straight line down. There may be a day or a day and a half of respite," said Song Seng Wun, head of research at CIMB Securities in Singapore.
Japan's Nikkei 225 stock average rose 207.75, or 2.7 percent, to 7,910.79, helped in part by a weaker yen, and Hong Kong's Hang Seng index jumped 360.64 points, or 2.9 percent, to 12,763.81.
South Korea's Kospi surged 5.8 percent and Australia's market closed up 1.9 percent after initially falling more than 3 percent. But mainland China's Shanghai Composite index slipped 0.7 percent and markets in the Philippines and Indonesia also sank.
European stock markets were little changed Friday as expectations of a recovery on Wall Street prompted some investors to scoop up battered financial and energy shares, although concerns about the global economy capped most gains.
The FTSE 100 index of leading British shares was up 16.05 points, or 0.4 percent, at 3,891.04, but Germany's DAX was 24.86 points, or 0.6 percent, lower at 4,195.34. The CAC-40 in France was down 14.62 points, or 0.5 percent, at 2,965.80.
US stock index futures were sharply higher, suggesting Wall Street would bounce back after a crushing two-day 10.6 percent plunge in the Dow Jones industrial average, its worst two-day percentage loss since October 1987.
Major Asian benchmarks opened lower after Wall Street tumbled to multiyear lows overnight but climbed into positive territory in afternoon trading. Oil prices, which had fallen below $49 a barrel to three-year lows in early trading, also bounced back.
"After tanking for so many days there will always be a belief that you just can't draw a straight line down. There may be a day or a day and a half of respite," said Song Seng Wun, head of research at CIMB Securities in Singapore.
Japan's Nikkei 225 stock average rose 207.75, or 2.7 percent, to 7,910.79, helped in part by a weaker yen, and Hong Kong's Hang Seng index jumped 360.64 points, or 2.9 percent, to 12,763.81.
South Korea's Kospi surged 5.8 percent and Australia's market closed up 1.9 percent after initially falling more than 3 percent. But mainland China's Shanghai Composite index slipped 0.7 percent and markets in the Philippines and Indonesia also sank.
European stock markets were little changed Friday as expectations of a recovery on Wall Street prompted some investors to scoop up battered financial and energy shares, although concerns about the global economy capped most gains.
The FTSE 100 index of leading British shares was up 16.05 points, or 0.4 percent, at 3,891.04, but Germany's DAX was 24.86 points, or 0.6 percent, lower at 4,195.34. The CAC-40 in France was down 14.62 points, or 0.5 percent, at 2,965.80.
US stock index futures were sharply higher, suggesting Wall Street would bounce back after a crushing two-day 10.6 percent plunge in the Dow Jones industrial average, its worst two-day percentage loss since October 1987.