Asian shares hit 3-week high as new US president elected
The US Dollar recovers after steep slide in prior session
European shares set to gain
Oil falls on profit-taking after previous day's rally
The upswing followed Wall Street, where investors brushed off more signs of a slumping US economy and piled into stocks. -- PHOTO: AGENCE FRANCE-PRESSE
HONG KONG - ASIAN stocks rallied Wednesday as investors welcomed the election of Barack Obama on hopes he will introduce a fresh stimulus to the economy and bring an end to the global financial crisis.
Markets took a lead from Wall Street's overnight rise as Americans went to the polls for historic elections, which saw Democrat Obama becoming the first black US president.
Wall St in record jump
Biggest Election Day rally ever
Market's highest close since Oct 6
GE climbs on talk of capital injection
Dow up 3.3%, S&P up 4%, Nasdaq up 3.1%
NEW YORK - US stocks rose in the biggest Election Day rally ever on Tuesday, as investors looked forward to the end of the uncertainty surrounding the long fight for the White House, and as energy companies' shares followed oil prices higher.
NEW YORK - INVESTORS believing that Wall Street is on the verge of a yearend rally piled into the market, brushing off more weak economic data while they scarfed up stocks and propelled the DowJones industrials to its highest close in four weeks. The Dow rose 305.45, or 3.28 per cent, to 9,625.28. The broader indexes also rose.
The Standard & Poor's 500 index gained 39.45, or 4.08 per cent, to 1,005.75. The Nasdaq composite index rose 53.79, or 3.12 per cent, to 1,780.12, its sixth straight advance and its longest winning streak of the year. The Russell 2000 index of smaller companies rose 7.47, or 1.39 per cent, to 545.97.
Regional bourses opened higher and continued their runs to the end of the day, with Tokyo closing 4.46 per cent up and Hong Kong rising 3.2 per cent.
Sydney ended 2.9 per cent better off despite a grim economic warning from the government, which revised down its growth forecast to 2.0 per cent this financial year, from 2.75 per cent previously projected.
Seoul also rose 2.4 per cent and Shanghai jumped 3.16 per cent, while Singapore added 2.14 per cent.
However, Taipei slipped 0.29 per cent mainly on bargain hunting following six days of rises.
'We're seeing the Obama rally,' Patrick Crabb, senior sales trader at Goldman Sachs JB Were in Melbourne, told Dow Jones Newswires.
'Even if economic figures and sentiment remain grim, markets still have high expectations for the policies that he will iron out from January,' said Saburo Matsumoto, chief forex strategist at Sumitomo Trust Bank.
'Markets generally favour a Republican government,' said Kazuhiro Takahashi, general manager at Daiwa Securities SMBC. 'But this belief has collapsed amid the financial crisis.' Obama's election also boosted the dollar. The greenback was at 1.2882 to the euro in Tokyo afternoon trade, down from 1.2975 in New York on Tuesday.
Dealers had said before the vote that a decisive win by either Obama or his Republican rival John McCain would clear up uncertainty about the leadership of the economy and handling of the financial crisis.
The Dow Jones added 3.28 per cent on Tuesday as Americans went to the polls.
Investors were also anticipating further rate cuts by world central banks to try to thaw frozen credit markets.
The European Central Bank and the Bank of England are both widely expected to make cuts when they hold separate meetings on Thursday. -- AFP
KUALA LUMPUR Malaysian share prices closed 1.1 per cent higher on Wednesday after profit taking narrowed earlier gains, dealers said.
The Kuala Lumpur Composite Index inched up 9.66 points to close at 915.24, off an intraday high of 926.65.
HONG KONG Hong Kong shares closed up 3.2 per cent on Wednesday, on a Wall Street rally and as investors pinned hopes on new US president elect Barack Obama to tackle the financial crisis, dealers said.
The benchmark Hang Seng Index soared 455.82 points to 14,840.16. Turnover was 63.37 billion Hong Kong dollars (US$12 billion).
The jump was led by Bank of China Hong Kong, which rose 17.15 per cent. Aluminium firm Chalco was up 10.54 per cent.
SHANGHAI Chinese share prices closed up 3.16 per cent on Wednesday amid strong gains across Asia and expectations of new measures to boost the economy from Beijing, dealers said.
Hopes were high for a new fiscal stimulus package after the state-run China Business News reported Beijing is considering investing five trillion yuan (S$1.08 trillion) in transport infrastructure, they said.
'Investors are buying cement and construction firms on anticipation for the government to increase investment in infrastructure building,' Mr Zhang Fan, an analyst with Tebon Securities, told Dow Jones Newswires.
But Mr Zhang said the gains may not last as it will take time for economy-boosting measures to bear fruit.
Meanwhile, sentiment was improved by strong gains in other Asian markets on hopes that the new US president Barack Obama will take further steps to stabilise the market and try to bring an end to the credit crisis, traders said.
The benchmark Shanghai Composite Index, which covers A and B shares, closed up 53.91 points to 1,760.61 on turnover of 37.6 billion yuan.
The Shanghai A-share index added 56.53 points, or 3.15 per cent, to 1,849.59 on turnover of 37.4 billion yuan, while the Shenzhen A-share index rose 14.49 points, or 3.02 per cent, to 494.79 on turnover of 13.7 billion yuan.
TOKYO Japan's Nikkei stock index closed up 4.46 per cent on Wednesday, mirroring strong gains across Asia on hopes that US president-elect Barack Obama will take new steps to end the financial crisis.
The benchmark rose 406.64 to finish at 9,521.24. -- AP, AFP, BERNAMA, THOMSON REUTERS
