Stock markets around world hit the high notes
Oct 3 2007 by Iain Laing, The Journal
STOCK markets around the world hit new highs yesterday after Asian shares surged on the back of a new record close on Wall Street.
Markets in Hong Kong, Australia and Singapore hit record levels while Japan’s Nikkei index also surged above 17,000 points. The rise followed the record high at the close of the US Dow Jones after weak economic data made an interest rate cut more likely.
Shares in banks were also boosted by the perception that the worst of the summer’s credit problems may be over.
Both Citigroup and UBS gave indications of the amount that the upheaval in credit markets had cost them in the past three months, but were confident that business was now returning to normal. Money flowing from the Chinese mainland lifted Hong Kong’s benchmark Hang Seng index a stunning 1,057.28 points, or 3.9% to 28,199.75, surpassing the 28,000-level for the first time.
Singapore’s Straits Times Index also saw a record – for the fourth straight session.
Australian stocks closed up 1.5% as mining stocks pushed the market higher.
Meanwhile, Japan’s Nikkei average rose 1.2%, or 200.82 points, to finish at 17,046.78. In the US on Monday, the Dow Jones Industrial Average closed up 1.38%, or 191.92 points, at 14,087.55 – the first climb above 14,000 since mid-July.
