Wednesday, March 16, 2011

GLOBAL MARKETS-Japan stocks surge after two-day rout

SINGAPORE, March 16: Asian financial markets rallied on Wednesday, led by a nearly 6 percent surge in Japanese stocks, after a horrendous two-day sell-off on last week's killer earthquake and an unfolding nuclear crisis.

Other Asian stock markets also opened higher, but analysts warned that news of another fire at the Fukushima Daiichi nuclear plant in the morning and a quake last night in the Shizuoka area near Tokyo would keep investors on edge.

Overnight, U.S. stocks closed down but off lows as a more upbeat view from the Federal Reserve helped limit Japan-related losses. The Fed stuck with its ultra-loose monetary policy but said the economy was gaining traction.

The yen slid to around 81.10 to the dollar, on fears of intervention by the Bank of Japan after the currency surged toward its 1995 historic high of 79.75. Speculators were betting that the Japanese government and companies would liquidate overseas assets to pay for reCONSTRUCTION [].

- Japan's Nikkei average opened up 1.9 percent and quickly clocked up gains of over 6 percent before slipping back.

- Australian shares were up around 1 percent, led by a relief rally in uranium producers Paladin and Energy Resources of Australia , which had sunk on news of Japan's nuclear woes.

- South Korea stocks were up 2.1 percent.

- The yen was last at about 81.10 to the dollar, falling from a high around 80.60. The euro was subdued after Moody's downgraded Portugal's ratings by two notches

- Crude prices climbed on after plunging over the Japan crisis and over increasing tensions in Bahrain. U.S. crude was up over $1 at $98.25 per barrel.

- Spot gold was slightly up at $1,399 per ounce, but was yet to significantly recover ground after investors sold off bullion to cover stock market losses. - Reuters

No comments:

Post a Comment