The stock markets in Asia surged higher following the advance on Wall Street after Morgan Stanley, Goldman Sachs, and JP Morgan Chase reported that they will pay back a combined $45B of TARP funds upon approval by the Federal Reserve.
Asia Session Key Developments
· Crude oil prices surge to $60/bbl for the first time since November
· Morgan Stanley, Goldman Sachs, JP Morgan Chase look to repay TARP Funds
Asian Stock Markets Surge Higher, Led by Financials and Rising Commodity Prices
The stock markets in Asia surged higher following the advance on Wall Street after Morgan Stanley, Goldman Sachs, and JP Morgan Chase reported that they will pay back a combined $45B of TARP funds upon approval by the Federal Reserve. Meanwhile, crude oil prices surged to $60 a barrel for the first time since November on speculation stockpiles slipped lower last week, and at the same time, Sunoco Inc. reported a fire at its refinery has forced the firm to shutdown the plant’s main gasoline unit.
NKY 225 9290.29
The Nikkei jumped 251.60 points (2.78%) to end the trading session at 9,290.29, with all of the components moving higher. Financial shares led the advance as the sector gained 3.99%, with Mitsubishi UFJ Financial Group, the biggest listed bank by assets in Japan, gaining 4.2%, while shares of Nomura Holdings picked up 3.7%. Moreover, Inpex Corp, Japan’s most prominent oil explorer, rose 5.4% following the jump in crude prices, while shares of Asahi Glass, a Japanese maker of plasma-display panels, surged 9.4% after Daiwa Securities raised the stock rating to ‘buy’ from ‘neutral.’
Shares in Hong Kong surged higher, with the Hang Seng advancing 521.12 points (3.06%) to close at a seven month high of 17,544.03, led by a 5.05% gain in basic materials. Shares of PetroChina and Cnooc Ltd rose 2.8% and 5.8%, respectively, following the rise in oil prices, while HSBC Holdings, advanced 6.30% following the gains in financials. Meanwhile, China Mobile gained 2.56% after the firm announced that its shares will be listed in its domestic market.
ASX 200 3817.30
The Australian benchmark equity index gained 81.70 points (2.19%) to close at 3,817.30 in Sydney, led by a 3.91% surge in oil and gas. Meanwhile, basic materials advanced 2.75%, followed by a 2.50% gain in financials, while consumer services increased 2.46%. BHP Billiton, the world’s largest mining company, surged 2.92% after global commodity prices pushed higher, while Mincor Resources, the nation’s fourth largest nickel, led the markets higher as its shares jumped nearly 24% after the firm found a new nickel sighting in Western Australia.
Notable Asian Session Event Risk / Economic Releases