Asian marts cheered by hopes of stimulus

Asian markets mostly rose for a second straight session yesterday on hopes for new rounds of central bank stimulus in Europe and the US to kickstart their troubled economies. The gains followed positive leads from Wall Street and Europe on Friday, while comments from European Central Bank chief Mario Draghi on Thursday on saving the euro were reinforced by Germany, France and Italy over the weekend. Tokyo closed up 0.80%, or 68.80 points, at 8,635.44, Sydney gained 0.85%, or 35.9 points, to 4,245.7 and Seoul also climbed 0.80%, adding 14.63 points to 1,843.79. Hong Kong rose 1.61%, or 310.44 points, to 19,585.40 but Shanghai was down 0.89%, or 18.85 points, at 2,109.91. Data showing US gross domestic product expanded at a weaker pace in the three months to June underlined the frail state of the world’s number one economy but lifted sentiment as dealers now expect a fresh cash injection from the Federal Reserve. Washington said the economy grew 1.5% in the second quarter of the year, after 2.0% in the first three months, sending US shares skyward. On currency markets in Asia, the euro bought $1.2275 and ¥96.20, down from $1.2315 and ¥96.63 in New York late Friday. The dollar firmed to 78.37 yen from 78.19 yen. Gold was at $1,618.30 at 1105 GMT from $1,623.65 late Friday. In other markets, Taipei rose 0.48%, or 34.39 points, to 7,158.88, Manila closed 1.12% higher, gaining 58.35 points to 5,277.90 and Wellington added 0.5%, or 17.60 points, to 3,518.89. Jakarta was up 0.37%, or 14.91 points, to 4,099.12, Bangkok rose 1.3%, or 15.31 points, to 1,193.32 and Kuala Lumpur closed up 0.46%, or 7.41 points, at 1,632.35. Singapore climbed 1.14%, or 34.31 points, at 3,032.80. from gulf times.