Asian markets made modest gains Monday as speculation eased over whether the Federal Reserve will begin an early tapering of its massive stimulus programme.
Emerging market currencies suffered a torrid few days of trading last week as dealers bet on an end to the Fed's $85billion a month monetary easing. But figures showing a slump in US housing market sales on Friday eased fears of an early tapering and led to rallies in Europe and the United States.
The feelgood factor carried on into the start of the new week's trade in Asia with Hong Kong shares up 0.75 percent and Seoul up 0.81 percent.
Sydney also rose a more modest 0.23 percent whilst Singapore was up 0.48 percent in early morning trade.
Tokyo stocks opened 0.43 percent higher but were marginally lower by the break with the early gains eroded by profit taking, dealers said.
In emerging markets, where currencies tumbled last week over concerns that the stimulus-inspired investment splurges in their regions would end, trade was broadly positive. Jakarta opened flat, Manila was up 0.40 percent and Kuala Lumpur rose 0.37 percent.
And there was some much needed respite for emerging market currencies. The Indian rupee, which tumbled to a record low of 65.56 to the dollar last week, fetched 63.35 to the dollar in Tokyo morning trade against 64.45 Friday afternoon.
The Indonesian rupiah edged up to 10,770 from 10,963. The Philippine peso firmed to 44.17 from 44.26 pesos, and the Thai baht rose to 31.87 from 31.94 baht.
Meanwhile the dollar was largely unchanged against major currencies. Against the yen, the greenback was at 98.70 yen, flat from New York Friday afternoon. The euro bought $1.3382 and 132.09 yen compared with $1.3381 and 132.11 yen.
The market rises in Asia echoed modest gains on Wall Street and in Europe at the end of last week.
The Dow Jones Industrial Average rose 0.31 percent while London closed 0.70 percent higher. Frankfurt added 0.23 percent and Paris rose 0.25 percent.
On top of taper fears easing, the positive trading was also helped by a slew of upbeat manufacturing data from Europe, the United States and China pointing to a pick-up in global economic fortunes.
In oil markets, New York's main contract, West Texas Intermediate for delivery in October, was up 39 cents to $106.81 a barrel in morning Asian trade, while Brent North Sea crude for October added 16 cents to $111.20.
Gold fetched $1,394.23 at 1100 GMT, down slightly from $1397.10 in late Friday trade.
Asian market gained
4/
5
Oleh
Lanka Stocks
