(RTTNews) - The stock markets across the Asia-Pacific region were trading sharply higher for a second day on Tuesday after Wall Street rallied overnight, posting its biggest one-day percentage gains since 1933. The Nikkei stock average surged more than 13%, making up for its worst one-day loss since the 1987 stock market crash, after international government pledged to provide cash to struggling banks and restore confidence in the global financial system. The euro surged against on news of coordinated action by European governments, while the yen fell against the dollar. Oil climbed back above $83 a barrel in the Asian session Tuesday.

On Monday, Wall Street rallied after its worst week ever, posting the biggest single-day point gain since the Great Depression. The Dow Jones industrials surged 11.1% following eight consecutive days of stock market carnage. The S&P 500 gained 11.6% and the Nasdaq advanced 11.8%.

At 9:37 p.m. ET, oil was quoted at $83.32 a barrel, up $2.13, after the contract for November delivery rose by $3.49 to settle at $81.19 a barrel on the New York Mercantile Exchange.

The U.S. dollar strengthened to the upper 102 yen-levels in early Tokyo deals from Friday’s close in the lower 99-yen range in Tokyo. The Japanese market remained closed on Monday on account of a public holiday. The South Korean won rose 5.4% to hit its strongest in over two weeks against the dollar. In early trade, the won was quoted at 1,196.3-1,197.1 a dollar compared to Monday’s domestic close at 1,238.0.

The Australian dollar opened stronger at US$0.6949-0.6956, up from Monday’s close of US$0.6672-0.6677. The New Zealand dollar strengthened against the greenback and was buying US$0.6068 in early local deals compared to US$0.5980 late Monday.

The Japanese stock market rebounded from its worst one-day loss since the 1987 stock market crash on Friday and was trading sharply higher. Meanwhile, a weaker yen boosted export-oriented stocks. Markets in Japan were closed on Monday for a national holiday.

At 9.01 P.M. ET, the benchmark Nikkei 225 Index was trading at 9,289.75, up 1,013.32 points or 12.24% and the broader Topix Index of all First Section Issues was gaining 77.39 points to 918.25. The Nikkei index saw the sharp gains after losing ground for seven straight trading days through Friday with a total loss of more than 3,000 points.

Trade in Nikkei futures trading on the Osaka stock exchange and Topix futures trading on the Tokyo stock exchange were halted early on Tuesday after a circuit breaker was triggered.

Among economic news, Japan announced September numbers for its domestic corporate goods price index, or CGPI. Prices for Japan’s wholesale-level production increased at a slower pace in September than in the previous two months. The Bank of Japan reported Tuesday that the domestic Corporate Goods Price Index increased 6.8% on year in September, compared to a 7.2% annual increase in August. The July increase of 7.3% was the highest in 27 years.

Japan is also slated to release consumer confidence data for the month of September later in the day. Consumer confidence is expected to post a score of 29.9 in September after a reading of 30.5 in August. Household consumer confidence stood at 30.1 in the previous month.

In the banking space, shares of Mitsubishi UFJ, Mizuho Financial Group and Sumitomo Mitsui were not traded as orders to buy outnumbered those to sell. Mitsubishi UFJ had wrested better terms and closed its $9 billion investment deal in Morgan Stanley on Monday.

Among automakers, Honda jumped 17.77% and Suzuki rose 10.37%. Nikon surged 14.69% and heavy machinery maker Komatsu advanced 1.94%.

In the tech sector, Advantest rose 13.82%, Fujitsu gained 11.01% and Fanuc soared 15.78%. Among oil-related stocks, Inpex Holdings rose 9.13%.

The South Korean stock market was trading sharply higher, extending its gains for the second straight trading session. The key index opened more than 5% higher, as investor sentiment was boosted by the overnight rally on Wall Street. At 9:20 p.m. ET, the benchmark Korea Composite Stock Price Index or KOSPI was up 63.78 points, or 4.95%, at 1,352.31. The rebound came after the index lost 12.55% last week.

Steep gains prompted the stock exchange operator Korea Exchange to suspend program trading temporarily for a second straight day to cool the market just after it opened.

In early trade, most large-caps gained substantial ground, led by finance and tech companies. Top financial service provider Shinhan Financial Group jumped 7.7% and smaller Woori Finance Holdings surged 12.3%. Top brokerage Mirae Asset & Securities gained 5.7%.

Tech bellwether Samsung Electronics advanced 4.2% and rival chipmaker Hynix Semiconductor continued its rally for a second day, gaining 6.6%.

GS Holdings soared 14% after the company dropped out of a joint bid for Daewoo Shipbuilding & Marine Engineering.

STX Group jumped 8.9% after STX Heavy Industries Co., its unlisted unit, said Tuesday that it has secured an order with Samsung C&T Corp. to build a floating storage unit worth 500 billion won.

The Australian stock market was trading sharply higher, extending its gains for a second straight day. Investors also expressed confidence in the Australian government’s emergency plan to protect the banking system.

At 8:58 p.m. ET, the benchmark S&P/ASX 200 index was up 215 points or 5.14% at 4,396, after closing up 5.55% on Monday with its biggest one-day gain in eleven years. The broader All Ordinaries index was gaining 224 points or 5.42% to 4,366.

On the economic front, Australian Prime Minister Kevin Rudd announced an A$10.4 billion plan to stimulate the nation’s sagging economy and help it survive the global financial crisis. Rudd said the plan would provide a $4.8 billion down payment on long-term pension reform, a $3.9 billion payment to low and middle income families, a $1.5 billion investment to increase government grants to first-time home buyers, $187 million to create 56,000 new training places and a speed-up in the timetable for the government’s public works “nation-building agenda”.

The National Australia Bank is scheduled to release its business confidence and business conditions survey results for September. A most recent survey showed a drop in both categories, with the forward-looking business confidence index down seven points and the current measure of business conditions falling three points.

Among banking stocks, Commonwealth Bank of Australia gained 5.19%, National Australia Bank climbed 9.73%, and ANZ Banking Group rose 7.40%. Westpac added 4.32%, investment bank Macquarie Group soared 13.26%, and rival St. George bank advanced 5.75%.

In the resources sector, index leader BHP Billiton advanced 5.40%, and Rio Tinto rose 6.73%. Gold miners were weaker, after gold closed lower on Monday. Lihir Gold fell 3.31%, Newcrest Mining dropped 4.40%, and Sino Gold plunged 10.35%.

Among energy stocks, Woodside soared 11.38%, Santos advanced 8.85%, and Oil Search climbed 10.50%.

In the retail sector, David Jones added 6.39%, Coles’ owner Wesfarmers rose 7.21%, and giant retailer Woolworths added 3.91%.

Australia’s largest steelmaker Bluescope advanced 4.66% after it warned that financial market turmoil could affect future demand, but forecast a strong first half in 2008-09.

Miner Fortescue Metals Group soared more than 51% after it strengthened its board and revealed that cash on hand has surged by $432 million, partly thanks to the weakening Australian dollar.

Fund manager Valad Property Group climbed over 31% despite canceling its interim dividend and warning that it cannot realistically issue any earnings guidance for the coming 12 months in the volatile economic climate.

The Zealand stock market opened higher, following a sharp rally at the Wall Street overnight with the U.S. averages posting one of their biggest single-day gains in history. Also, the stock markets across the world closed sharply higher on Monday, signaling the possible return of confidence in the frozen global credit markets.

The benchmark NZX 50 index was up 190.33 points or 6.84% to 2,972.73 shortly after the market opened for the day, while the broader NZX All Capital Index added 165.93 points or 5.86% to 2,997.35.

On Tuesday’s economic data calendar, the Reserve Bank of New Zealand issues its tally of non-resident bond holdings for September. The report is due at 02:00 GMT.

In the early trading on the New Zealand stock market on Tuesday, the country’s top ranked share Telecom gained 6.85%, while the second ranked Contact Energy jumped 6.38%. Fletcher Building, the third best stock, surged 9.40%.

In the retail sector Hallenstein Glasson collected 2.45%, as jewelry retailer Michael Hill International added 2.86%. The Warehouse advanced 3.21%, as Pumpkin Patch climbed 8.57%.

In the energy sector Vector collected 2.48%, while TrustPower surged 3.69% in the day’s early trading.

Among the dual listed issues AMP jumped 10.44%, as Australia and NZ Banking Corp surged 16.83%. APN News & Media and Telstra remained unchanged, as Lion Nathan gained 8.00%. Westpac Bank added 6.67%.

Other Asian markets

Hong Kong’s Hang Seng index is up 3.8% at 16,929; China’s Shanghai composite index is up 1.2% at 2,099; Singapore’s Straits Times index is up 4.5% at 2,170; Taiwan’s weighted index is up 5.2% at 5,281; Malaysia’s KLCI is up 18.5 points at 969; and Indonesia’s Jakarta composite index is up 5.8% at 1,547.

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Posted in Categories: Australia, Economy, Eurozone, Japan, New Zealand, Releases, USA.

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