Asia stocks rally on oil and hopes for banks
Asian stocks rebounded on Thursday, boosted by the biggest surge in U.S. bank shares in 16 years and a decline in oil prices, providing some relief from fears about the global credit crisis spiralling out of control.
Prudential sales boosted by Asia marketsWells Fargo & Co, the fifth-biggest U.S. bank, boosted the entire sector by posting quarterly results well above expectations and raising its dividend by 10 percent.
Shares of high-profile Asian exporters such as consumer electronics giant Samsung Electronics gained as lower energy prices comforted investors about the outlook for demand, while shares of Japan's largest bank, Mitsubishi UFJ Financial Group, rose 5 percent on hopes for the financial sector.
Upcoming earnings announcements from Wall Street banks could be a stress test for the current rally, with Merrill Lynch & Co Inc expected to report its fourth consecutive quarterly loss and writedowns of up to $6 billion.
"With the subprime problems still out there, it does not mean a trend change, but we are seeing a short-term rebound led by recently battered banks and exporters," said Norio Shimura, deputy head of the equity department at Chuo Securities in Tokyo.
Japan's Nikkei share average .N225 rose 1.1 percent, already set for the biggest daily rise in a month.
Outside of Japan, shares in the Asia-Pacific region were up 1.5 percent on the day after plumbing the lowest since March 2007 on Wednesday.
Hong Kong's Hang Seng index .HSI jumped 2.5 percent, led by gains in global bank HSBC.
South Korea's KOSPI climbed 2.35 percent after touching a 15 month low the previous session.
Stock markets globally remain entrenched in a bear market, with the overall decline in the MSCI all-countries world index at slightly more than 20 percent from an all-time high reached in November.
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- 1 U.S. crude rises above $116 on geopolitics
- 2 Asia stocks and dollar slip as oil climbs
- 3 Commodities and China hopes lift FTSE in early trade
- 4 Asia stocks plumb two-year low
- 5 FTSE falls 1.1 pct as fresh credit fears hit banks
- 6 Oil falls below $112 a barrel to 4-month low
- 7 Asia stocks at two-year low
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