Asian markets recovering after plunge
29 Aug 2011
Asian stocks rose for the third day today after US Federal Reserve chairman Ben S Bernanke said economic recovery will accelerate and the central bank has more means to prop up the country's growth if appropriate.
Bernanke refrained from stating that the Federal Reserve would immediately introduce new measures to support the US economy, saying instead that options would be discussed at the Fed's next meeting in September. However, the announcement was enough to trigger buying enthusiasm across the Asia-Pacific region.
Indian bourses too are expected to recover after Friday's steep fall, following the gains in Asian markets. The ending of the uncertainty caused by the Anna Hazre-led anti-corruption movement too is expected to boost market sentiment.
Chinese banks declined, however, as concerns about monetary tightening returned on reports the People's Bank of China has announced new measures that would in effect increase the amount they must set aside as reserves.
The MSCI Asia Pacific Index advanced 1.4 per cent to 122.04 as of 2:50 pm in Tokyo, heading for its highest close since 18 August. About three stocks rose for each that fell in the gauge. The measure snapped four weeks of losses last week.
Australia's S&P/ASX 200 Index gained 1.7 per cent and South Korea's Kospi Index climbed 2.8 per cent. Hong Kong's Hang Seng Index increased 1.3 per cent, while China's Shanghai Composite Index slipped 1.3 per cent.
