Asian Markets Surge, India Up 3.6%

123jump.com Staff
24 Dec, 2007
New York City

Asian markets closed sharply higher led by a surge in India, Hong Kong, and Shanghai. India soared 3.6% on the strength in local election victory of pro-business party BJP. Banks and infrastructure stocks gained. Property stocks in Hong Kong advanced after talks of another interest rate cut in the U.S. made rounds. Brokerage stocks led the rise in Shanghai trading. Mining stocks led the rise in Australia.

[R]7:30AM New York – Asian Markets closed higher led by a surge in India, Hong Kong, and Shanghai.[/R]

Asian markets closed higher ahead of the holiday week.

The talks of continued weakness in the U.S. economy and probable weakness in the interest rate lifted property stocks in Hong Kong. Mining stocks closed higher in Australia. India closed higher as investors supported the rising market on the higher close in the U.S. on Friday.

Markets in Japan, Thailand, and Indonesia were closed.

In Hong Kong Hang Seng index closed up 501.88 or 1.82% to 28,128.80 and in Australia ASX 200 increased by 78.60 or 1.25% to close 6,388.00.

In South Korea Kospi Index increased 41.15 or 2.35% to close at 1,919.47. In India Sensex Index surged 691.55 or 3.61% to close 19,854.12.

Brokerage stocks lifted Chinese stocks. Shanghai Composite Index jumped 2.6% to 5,234.26. Citic Securities rose 5.3% and Northeast Securities soared 7.3%.

Investors in China have been pouring money into real estate and stock market as banks pay interest rate less than the prevailing inflation. The recent surge in stock market indexes and real estate prices in urban areas is a reflection of current account surplus and rising trade surplus. The macro picture for stock markets and real estate is not likely to change unless the trade surplus declines dramatically.

PetroChina closed higher by 5%.

Sensex in India surged 3.6% to close at 19,854.12 after Gujarat State election returned pro-business BJP party with a higher margin and just short of two-thirds majority.

Banks led the gainers in the session. HDFC, the housing finance company soared 6%. Software exporters gained led by a 6% rise in Wipro. GAIL, Gas Authority of India soared 9% and ONGC added 4.8%.