HONG KONG: Asia's stock markets surged on Thursday, boosted by another strong performance on Wall Street and hopes European leaders will come together to plan a route out of the region's sovereign debt crisis.
Sentiment was also lifted by better-than-expected economic data out of Washington that eased concerns the United States is slipping into recession.
German Chancellor Angela Merkel on Wednesday called on her eurozone counterparts to recapitalise the banking sector to help prevent Greece's debt crisis from spreading to other nations.
Her view that helping the banks was "justified, if we have a joint approach" echoed comments from the EU's economic affairs commissioner the previous day, and gave a much-needed boost to nervous investors.
Tokyo jumped 1.66 percent, or 139.04 points, to 8,522.02, Seoul rallied 2.63 percent, or 43.80 points, to 1,710.32 and Sydney raced 3.65 percent, or 143.4 points, higher to 4,069.9.
Hong Kong soared 4.62 percent in the afternoon, and Singapore was 2.41 percent higher.
Shanghai and Mumbai were closed for public holidays.
Merkel was speaking soon after France and Belgium agreed to bail out Dexia, the first European bank to be dragged down by the eurozone debt crisis -- and which also had to be rescued in 2008.
Merkel said it "is important for the markets that we achieve results... time is pressing and we have to act quickly".
Germany, she said, was ready to lead, putting fresh capital into its banks if necessary, but added that Europe had no "magic wand" to resolve the crisis.
Markets have been hammered in recent weeks as Europe's leaders bicker over a plan to help Greece avoid a default and find a way out of its debt crisis, which many fear could plunge the global economy into another recession.
The International Monetary Fund on Wednesday also urged Europe to balance growth with austerity and called for a "more than overdue" solution to the crisis, warning of recession next year if it fails.
European stocks were lifted, with London's FTSE-100 jumping 3.19 percent, Frankfurt's DAX soaring 4.91 percent and Paris' CAC-40 up 4.33 percent.
Merkel's comments also provided a platform for Wall Street, with the Dow up 1.21 percent, the S&P 500 adding 1.79 percent and the Nasdaq up 2.32 percent.
US traders were given another lift by upbeat macroeconomic data.
The ISM index on the US service economy in September fell slightly to 53 from 53.3 the previous month, but was still in positive territory, while its business activity sub-index rose 1.5 points to 57.1.
Meanwhile the private payrolls firm ADP reported that US companies added 91,000 jobs last month, more than analysts had predicted.
"In addition to talks of putting in place a system of backstops for European banks, the US macroeconomic data have generally been solid, lending to relief in market sentiment," Yoshihiro Okumura, general manager of research at Chibagin Asset Management in Tokyo, told Dow Jones Newswires.
On currency markets the single currency was at $1.3352, a tad up from $1.3346 late Wednesday in New York, and at 102.45 yen against 102.44. The dollar was at 76.73 yen, from 76.78.
Stocks linked to Apple were mixed following news the US giant's co-founder and chairman Steve Jobs had died of pancreatic cancer.
In Tokyo, the official iPhone carriers were mixed. Softbank fell 0.30 percent and KDDI gained 1.26 percent, while among parts suppliers Sharp rose 3.45 percent and Ibiden surged 4.77 percent.
In Seoul, rival Samsung Electronics was up 1.54 percent while LG Electronics rose 6.33 percent, in a surging market.
And in Taipei, Hon Hai Precision -- the parent of Apple goods assembler Foxconn, gained 3.55 percent while smartphone maker HTC was 1.63 percent lower.
Oil was slightly lower. New York's main contract, light sweet crude for November delivery fell nine cents to $79.59 a barrel and Brent North Sea crude for November, eased 44 cents to $102.29.
By 0620 GMT gold was at $1,648.10 an ounce.
In other markets:
-- Taipei rose 2.04 percent, or 142.85 points, at 7,132.0.
-- Wellington closed 0.54 percent, or 18.09 points, higher at 3,346.21.
Fletcher Building gained 2.4 percent to NZ$7.81 but Fisher & Paykel Healthcare dropped 1.2 percent to NZ$2.55.
-- Manila closed 1.76 percent, or 67.39 points, higher at 3,890.52.
Metro Pacific rose 1.1 percent to 2.71 pesos, Philippine Long Distance Telephone was up 1.2 percent at 2,146 pesos and Lepanto Mining jumped 4.2 percent to 1.25 pesos.
Comments
Comments are closed for this article.