- Title: MARKETS-GLOBAL/ASIA-CLOSE Asia stocks rise on Wall Street surge, upbeat U.S. data
- Date: 28th August 2015
- Summary: TOKYO, JAPAN (AUGUST 28, 2015) (REUTERS) TOKYO STOCK EXCHANGE (TSE) BUILDING SIGN READING (English): "JPX, TOKYO STOCK EXCHANGE" STOCK INFORMATION ON SCREEN ELECTRONIC STOCK BOARD ALARMING AT CLOSING OF MARKET ELECTRONIC STOCK BOARD SHOWING NIKKEI AVERAGE CLOSING AT 19136.32 ROTATING STOCK PRICE TICKER TSE STAFF WORKING SEOUL, SOUTH KOREA (AUGUST 28, 2015) (REUTERS) TRAFFIC ON SEOUL STREETS PEOPLE WALKING ACROSS INTERIOR OF DEALING ROOM ELECTRONIC BOARD SHOWING KOREA COMPOSITE STOCK PRICE INDEX (KOSPI) VARIOUS OF DEALERS WORKING DEALERS WORKING IN FRONT OF ELECTRONIC BOARD SHOWING KOREA COMPOSITE STOCK PRICE INDEX (KOSPI), USD/KRW EXCHANGE RATE MORE INTERIOR OF DEALING ROOM SYDNEY, AUSTRALIA (AUGUST 28, 2015) (REUTERS) ENTRANCE TO SYDNEY STOCK EXCHANGE ELECTRONIC BOARD DISPLAYING STOCK PRICES AND MARKET GAINS AND LOSSES ELECTRONIC BOARD WITH STOCK PRICES VARIOUS OF GRAPH DISPLAYING ALL ORDINARIES GRAPH SHANGHAI, CHINA (AUGUST 28, 2015) (REUTERS) INVESTORS INSIDE STOCK EXCHANGE STOCK INFORMATION ON SCREEN SCREEN SHOWING STOCK INFORMATION VARIOUS OF STOCK INFORMATION ON SCREEN INVESTORS INSIDE STOCK EXCHANGE STOCK INFORMATION ON SCREEN INVESTORS VARIOUS OF STOCK INFORMATION ON SCREEN INVESTORS INSIDE A STOCK EXCHANGE HONG KONG, CHINA (AUGUST 28, 2015) (REUTERS) VARIOUS OF FOUNDER AND EDITOR OF SCHULTE RESEARCH, PAUL SCHULTE, SPEAKING SCHULTE'S HANDS (SOUNDBITE) (English) FOUNDER AND EDITOR OF SCHULTE RESEARCH, PAUL SCHULTE, SAYING: "We have a Fed that's basically pulling back. We have China that's indicating that it's going to ease more. India's probably going to ease more. Indonesia's probably going to ease more. And we have more relief coming. So you have less perceived credit risk, you have greater perceptions, improved perceptions of liquidity, and you have stocks that are in extreme levels of oversoldness. And so those three combinations together give us this big bounce which could continue for several weeks." HONG KONG STOCK EXCHANGE LOGO PEOPLE WALKING PAST ENTRANCE OF HONG KONG STOCK EXCHANGE MARKET TRADING FLOOR/MARKET CLOSING BELL RINGING ELECTRONIC BOARD SHOWING HANG SENG INDEX AT 21612.39 (-226.15, 1.03%) VARIOUS OF TRADERS MARKET TRADING FLOOR
- Embargoed: 12th September 2015 13:00
- Location: Japan
- Country: Japan
- Topics: General
- Reuters ID: LVA9R0G640913O293HF1DAV70D1W
- Aspect Ratio: 16:9
- Story Text: Asian markets extended a global rally into second day on Friday (August 28), as upbeat U.S. economic growth data calmed sentiment following the hammering shares across the region took earlier in the week.
Wall Street rose sharply overnight thanks to revised U.S. gross domestic product data showing the economy grew faster than initially thought in the second quarter - a reassuring sign amid worries over deepening economic woes in China.
Japan's Nikkei share average rose 3 percent to 19,136.32. The benchmark index climbed above its 200-day moving average for the first time in five days but failed to erase all the losses incurred on Monday (August 24) and Tuesday (August 25), ending the week down 1.5 percent.
Seoul shares rose again, producing their best week in nearly three years.
The Korea Composite Stock Price Index (KOSPI), rising for a fourth straight day, ended up 1.6 percent to 1,937.67 points.
The index not only snapped a five-week losing streak but had its biggest weekly gain - 3.3 percent - since mid-September 2012.
Australian shares ended 0.6 percent higher on Friday, boosted by a rebound in commodities, with miners and energy-related stocks propping up the index.
Major miners BHP Billiton gained nearly 6 percent while Rio Tinto jumped 4.7 percent.
The S&P/ASX 200 index rose 30.3 points to close at 5,263.6, but came off the day's high of 5,305 after weak data from China kept alive worries about slowing momentum in its economy.
It marked the fourth straight day of rises for the index, which gained 1.2 percent on Thursday (August 27). After a tumultuous start to the week when global markets were rocked by turmoil in Chinese equities, the index posted its first percentage gain in three weeks.
China stocks surged on Friday, encouraged by strong gains on Wall Street and signs of fresh support from Beijing after a five-day plunge that panicked global markets.
The CSI300 index .CSI300 of the largest listed companies in Shanghai and Shenzhen rose 4.3 percent, to 3,342.29 points, while the Shanghai Composite Index .SSEC gained 4.9 percent to 3,232.35 points.
For the week, the SSEC lost 7.9 percent and the CSI300 fell 6.9 percent.
In Hong Kong, stocks changed course Friday afternoon and lost 1 percent, as a rebound on Thursday and in morning trade prompted profit-taking.
The Hang Seng index fell 1.04 percent, to 21,612.39, while the China Enterprises Index lost 1.1 percent, to 9,750.73 points. The index lost 3.6 percent for the week, its sixth consecutive weekly fall.
At the midday break, the Hang Seng had been up 0.5 percent, helped by Wall Street's solid gains overnight, but a wave of selling in late afternoon knocked down the index.
Paul Schulte, founder and editor at Schulte Research in Hong Kong, said various factors are keeping the market afloat.
"We have a Fed that's basically pulling back. We have China that's indicating that it's going to ease more. India's probably going to ease more. Indonesia's probably going to ease more. And we have more relief coming. So you have less perceived credit risk, you have greater perceptions, improved perceptions of liquidity, and you have stocks that are in extreme levels of oversoldness. And so those three combinations together give us this big bounce which could continue for several weeks," Schulte said.
China's local pension funds will start investing 2 trillion yuan ($313.05 billion) as soon as possible in stocks and other assets, senior government officials said on Friday.
The central bank was also seen intervening for a second day to stabilise the yuan currency to reduce market expectations of further yuan depreciation, traders said.
China's surprise currency devaluation in mid-August and a survey showing deteriorating factory activity helped trigger a savage selling spree which at one point drove stocks down more than 20 percent within a week.
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