Sun, Oct 16, 2011 - Page 10 News List

Asia stocks jump on Europe news

FAITH IN EUROPE:Investors are hoping EU policymakers will come up with a bank package that would reduce the expected damage to the real global economy

Bloomberg and AFP, with Staff Writer

Asian stocks posted the biggest weekly gain since March amid rising confidence European policymakers would act to tame the region’s debt crisis and speculation China would boost support for its equity market.

Bank of China Ltd (中國銀行) surged 12 percent in Hong Kong after a Chinese sovereign wealth fund said it began buying shares of the four biggest national banks.

“There is hope that if a comprehensive European bank package is announced, the damage to the real economy will be less than currently expected,” said Belinda Allen, a senior investment analyst at Colonial First State Global Asset Management in Sydney.

The MSCI Asia Pacific Index gained 3.4 percent to 116.82 this week, the biggest weekly advance since the week ended March 25. The index is down 15 percent this year amid concern the global economy is poised for another recession as Europe’s troubles worsens and US growth falters.

Taiwan’s TAIEX closed on Friday at 7,358.08, a 2 percent increase from the previous week’s close.

Australia’s S&P/ASX 200 advanced 1 percent. South Korea’s KOSPI rose 4.3 percent and Hong Kong’s Hang Seng Index gained 4.5 percent. Japan’s Nikkei 225 Stock Average climbed 1.7 percent

In other markets on Friday:

Manila closed 0.46 percent higher from Thursday, adding 18.92 points to 4,153.40.

Wellington ended down 0.13 percent, or 4.21 points, at 3,302.47 from Thursday.

Mumbai rose 1.18 percent, or 198.77 points, to 17,082.69 from Thursday.

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