Asia Stocks Rise on Fed Stimulus Plan
Asian stock markets climbed on Thursday as investors took heart from the Federal Reserve’s plan to buy $600 billion in government bonds in an effort to inject life into the faltering U.S. economy.
Japan’s benchmark Nikkei 225 stock index jumped 204.94 points, or 2.2 percent, to 9,364.92 in the morning session despite pressure on exporters as the dollar fell below the 81 yen level.
South Korea’s Kospi added 0.3 percent to 1,942.08 and Australia’s S&P/ASX 200 was up 0.4 percent at 4,815.00.
Hong Kong’s Hang Seng index climbed 0.9 percent to 24,363.54. China’s Shanghai Composite Index rose 0.6 percent to 3,047.78.
Elsewhere, markets in Malaysia, Singapore and Taiwan advanced while New Zealand’s index fell.
In New York on Wednesday, the Dow Jones industrial average rose 26.41 points, or 0.2 percent, to 11,215.13, the highest close in two years after the Fed outlined plans to buy $600 billion in bonds to stimulate the economy. The aim is to drive interest rates lower in an effort to spark spending and lending.
The Fed’s announcement came after American voters frustrated by persistent unemployment and the limp housing market handed control of the House to Republicans to Republicans and gave the party a bigger voice in the Senate.
The split will probably make it harder for President Barack Obama to enact any major economic initiatives and could put more pressure on the Fed to get the wobbly economy back on firmer footing.
In currencies, the dollar fell to 80.09 yen from 81.05 yen in New York late Wednesday. The euro declined to $1.4119 from $1.4122.
Benchmark crude for December delivery was up 54 cents at $85.23 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 79 cents to settle at $84.62 a barrel Wednesday.
TOKYO (AP)