Asian markets extended strong gains Tuesday. However, investors were still cautious although US shares jumped nearly 7% a day earlier. On Wednesday most major indices in Asia opened modestly lower following the weak lead of Wall Street.
LG Electronics Inc.
Yesterday the Asian major bourses posted losses, driven by negative sentiment caused in large part by doubts over the financial rescue package in the US and profit-taking. The US President Barack Obama was sending Congress a budget that projects the government's deficit for this year will soar to US$1.75 trillion, reflecting efforts to pull the nation out of a deep recession and a severe financial crisis.
Most major Asian indexes ended higher on Monday except for the Japan market. Tokyo stocks hit by the bankruptcy of nonbank lender SFCG dropped 2.8% in early trading and ended 0.5% at the close. South Korea's Kospi jumped 3.2%, China's Shanghai Composite added 2% and Hong Kong's Hang Seng Index surged 3.8%. This morning the Nikkei average extended its tumble after US stocks sank to a record low since 1997.
Asian markets are expected to be flat today before the US stimulus package is unveiled. Yesterday the major indexes in Asia closed mixed with Shanghai and Hong Kong extended the rising after China's stimulus plan announced last week, while Tokyo and Seoul declined.
Tokyo stocks opened sharply lower Friday with investor sentiment hurt by Sony Corp.'s forecast of an annual operating loss as well as by a fall in U.S. shares overnight due to disappointing corporate earnings there. Yesterday the Aisan markets gained on the good lead from Wall Street. Hong Kong's Hang Seng Index firmed 0.6% to 12657.99. The Shanghai Composite Index added 1%. South Korea's Kospi Composite rose 1.1% to 1116.23.