Asia-Pacific markets were higher after major wall Street Banks pledged a deposit of $30 billion in First Republic Bank in an attempt to bolster confidence in the banking system. The group of 11 banks included JPMorgan Chase, Citigroup, Wells Fargo and Bank of America.
The Hang Seng index of Hong Kong surged 4.35% with the Chinese search engine company Baidu climbing over 15%.
Companies from the mainland China- Shanghai Composite and Shenzhen Component upped by 1.58% and 1.25% respectively. The higher trend in the Japanese markets was noticed with Topix at 1.18% and the Nikkei 225 up by 1.2%. The South Korean exchange of Kosdaq reflected a larger gain at 2.03% where Kospi was up by 0.73%. In the Australian index the S&P/ASX 200 moved up 0.45% with the banks observing minor gains.
Overnight in the US, the stocks rallied in late in the trading day after the news of the banking rescue deal with all three major indexes closing up. Advancing 2.48%, the Nasdaq composite showed significant gains with the investors buying the technology stocks on hopes that the crisis might push the Federal Reserves to shift its approach on monitory policy at its meeting next week.
These are positive indications that build new hope for the banking sector and will further add some energy to the surging momentum. In these times, these developments are optimistic towards building and growing better market scenario.