Market Report - Asia Stocks Rise after U.S. Bailout

Asian stocks rose on Monday as investors hunted for bargains after the U.S. government unveiled an
unprecedented 700 billion dollar bank bailout plan.

Financial giants Goldman Sachs and Morgan Stanley were forced to gave up their cherished investment banking status in return for cover from the U.S. Federal Reserve.

In Japan, the Nikkei rose to a one-week high, buoyed by financial shares like Japan's top lender Mitsubishi UFJ Financial Group and Nomura holdings which has reportedly bid for parts of Lehman Brothers in Asia and Europe. But traders said the market rebound could fizzle out if Japanese firms cut
their earnings outlooks amid the global economic slowdown and lingering concerns toward the complex bailout package and its long-term implications.

In Hong Kong, Chinese financials like ICBC extended Friday's massive rally after Beijing said it would ask leading banks to buy shares to stabilize the markets.

China's main stock index, the Shanghai composite rose sharply as investors hunted for bargains in the worst performing market this year.

On the downside, shares in Chinese dairy producer Yili Group dropped after its products were caught up in a widening Chinese scandal over tainted milk products that has put nearly 13,000 infants in hospital.

Oil prices meanwhile shed strong gains to steady above $104 a barrel as investors questioned whether the bailout would truly succeed in stemming future losses.

Category:

News & Politics

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• ntd
• Market
• Report
• Asia
• Stocks
• U.S.
• Bailout
• chinese
• Yili
• Group
• ICBC
• Mitsubishi
• UFJ
• Financial