Published: Tuesday May 19, 2009 MYT 1:09:00 PM
Updated: Tuesday May 19, 2009 MYT 3:24:33 PM

Asian stocks continue surge at mid-day

By Loong Tse Min

KUALA LUMPUR: Asian stock markets including Malaysia continued to surge at mid-day close on hopes that the global financial crisis is easing.

Overnight, US banks applied to repay relief funds to the government coupled with a drop in borrowing costs that is boosting such optimism.

At 12.30pm Asian stocks rose, led by finance companies with Japan’s Nikkei 225 has gained 2.92% to 9,302.96, Hong Kong’s Hang Seng Index is up 3.03% to 17,538.69 and Singapore’s Straits Times Index is up 80.19 points to 2,257.17.

Meanwhile the KL Composite Index (KLCI) has also jumped up 1.27% or 12.81 points to 1,024.82.

Top index movers at mid-day close were Axiata +13 sen to RM2.34, Maybank +14 sen to RM5.10, BCHB +20 sen to RM8.95 and PPB Group -12 sen to RM11.

Investors in Malaysia are likely reversing yesterday’s profit-taking activities and following the strong overnight Monday close on Wall Street.

Healthcare, materials and telecommunications sectors are leading the Malaysian market at mid-day. India’s Sensex 30 Index was down 2.03% to 13,994.94 at mid-day.

However, Bloomberg reported Indian shares trading in the U.S. rallied on speculation Prime Minister Manmohan Singh's Congress party victory in nationwide elections will speed up economic reforms and lure overseas funds.

The Bank of New York Mellon India ADR Index surged 16 percent.

American depositary receipts of ICICI Bank Ltd., India's second-largest lender, climbed 25 percent to the highest in eight months after Morgan Stanley raised its recommendation on the country's financial stocks.

The Shanghai Composite Index is up 1.01% to 2,679.55.

China Mobile climbed 4.6 percent to HK$75.60. The company's Chairman Wang Jianzhou said in the city today that there is a "good opportunity" for overseas acquisitions as phone assets are "inexpensive."

Asahi Glass rallied 8.9 percent to 671 yen, set to close at its highest level since Oct. 15. The shares were boosted to "buy" from "neutral" by Daiwa analyst Yusuke Ando.

MAYBANK : [Stock Watch] [News]
COMMERZ : [Stock Watch] [News]
PPB : [Stock Watch] [News]