Good morning - Things are snapping back in Asia but S&P futures only up 7. Maurice - switch to QCOM at 80 in November. At least that will include the next earnings report. We need some plausible trigger to make things happen other than just "reversion to the mean" as Jon says.
FOCUS-Tokyo shares roar 6 pct higher, Asia follows
Reuters, Wednesday, October 07, 1998 at 06:52
By Sonali Verma
SINGAPORE, Oct 7 (Reuters) - Tokyo stocks leapt more than
six percent on Wednesday, lifting delighted markets across Asia
as optimism spread that Japan would revive its battered economy
and revitalise its banking sector.
The benchmark Nikkei average surged 6.17 percent to
13,825.61 -- its largest rise since January 16 in terms of both
points and percentages -- while shares in Hong Kong, Sydney,
Seoul, Singapore and Taipei climbed two to three percent each.
The yen firmed to 125.84/94 per U.S. dollar late on
Wednesday, compared with 131.21/31 late on Tuesday, as traders
took heart from a Japanese government plan to consider a fresh
economic stimulus measures.
"The government's action to restore the ailing economy has
been more speedy than expected, which prompted traders to cover
short positions, especially in banks, to lock in profits," said
Masatoshi Kikuchi, a senior strategist at Daiwa Institute of
Research.
He added that a proposal by the ruling Liberal Democratic
Party to recapitalise weak banks was more generous towards
banks than initially expected.
In Hong Kong, stocks ended 2.38 percent higher at 7,744.72,
after hitting a high of 7,829.58, ahead of Chief Executive Tung
Chee-hwa's annual policy address.
Tung later vowed to retain the Hong Kong dollar's peg to
its U.S. counterpart and not to impose foreign exchange
controls.
"Part of the driving force is from Japan," said Ricky Tam,
senior research analyst at Delta Asia Securities. "A lot of
people expect the U.S. market will continue to rebound tonight
and the European markets too."
Australian stocks jumped 1.97 percent to finish at 2540.2.
"The market was fairly quiet earlier on the day, but
basically driven in the afternoon by a huge rise in Japan, and
also a stronger market in Hong Kong," said Michael Scichlau, a
dealer at Daiwa Securities.
In Seoul, stocks closed 1.7 percent higher at 313.49,
mostly on the strength of local bank shares, as investor
sentiment improved in line with similar increases elsewhere.
"A general buying sentiment returned to the market but the
index will likely meet resistance at the 320-point level on
Thursday," said Ssangyong Securities analyst Choi Chang-ho.
Singapore shares ended 3.38 percent higher at 921.57
points, aided by a stronger Singapore dollar and institutional
buying of blue chips. |
