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05 June 2023

Asian stocks rally in response to Obama plan

By Agencies

Asian shares rose, lifting most of the major benchmark indices, as US President-elect Barack Obama said stimulus spending will continue for years, boosting confidence consumption in the world's biggest economy will rebound.

Japan's Nikkei 225 Stock Average added 1.7 per cent to 9239.24, rising for a seventh-straight day, the longest streak since April 2006. The broader Topix index added 12.05, or 1.4 per cent, to 888.25, with three stocks gaining for every two that fell. Most major markets in the region gained.

Indian stocks plunged 7.25 per cent yesterday as investors were hit by a billion-dollar fraud scandal in major software firm Satyam Computer, dealers said.

The benchmark 30 share Sensex index fell 749.05 points to 9,586.88, snapping four consecutive days of gains. Thailand's SET Index dropped for a second day, declining 10.19, or 2.2 per cent, to 462.96 at the close, the most since December 22. More than three shares gained for each that dropped. Canon Inc, which gets a third of its sales from the Americas, and Honda Motor jumped 11 per cent on expectations Obama's plan to cut taxes will boost spending in the US, and as the yen fell for a sixth day against the dollar. Mitsui & Co, a trading company that derives more than half its profit from commodities, leapt 8.5 per cent after a gauge of metal prices climbed to a one-month high in London.

Fuji Heavy Industries, the maker of Subaru cars, soared 21 per cent to 297 yen as a weaker yen boosted the profit outlook for overseas sales. Honda Motor, Japan's second-biggest car maker, jumped 11 per cent to 2210 yen. Sharp Corp, Japan's largest maker of liquid-crystal displays, rallied 13 per cent to 897 yen.

Samsung added 5.2 per cent to 524,000 won in Seoul. Rio Tinto Group surged 8.1 per cent to A$46.93after copper prices jumped the most in a month.