HONG KONG: Asian markets rose for a second day Wednesday on hopes that authorities will unveil fresh stimulus to counter the effects of Britain’s shock vote to leave the European Union.
After Friday’s battering, regional investors have this week led a return to global equities and higher-yielding currencies.
However, analysts warned there would likely be a period of volatility as Britain and its EU partners try to hammer out an exit agreement.
Wednesday’s gains built on the previous day’s advance after Seoul unveiled a $17 billion plan to support South Korea’s already fragile economy, while news emerged that Japan was considering a similar move.
Before the Tokyo bourse opened, Prime Minister Shinzo Abe, Finance Minister Taro Aso and Bank of Japan chief Haruhiko Kuroda held talks on containing the Brexit crisis.
“The panic selling in global markets has eased,” Chihiro Ohta, a senior strategist with SMBC Nikko Securities, told Bloomberg News.
“The fact that there’s a meeting going on between the government and the Bank of Japan will serve as a psychological anchor.”
Japan’s Nikkei ended the morning session 1.4 percent higher, while Hong Kong was up 0.9 percent, Shanghai gained 0.4 percent and Sydney put on 0.7 percent. Seoul jumped 1.3 percent, while Singapore, Taipei and Wellington each tacked on about one percent.
The advances follow sharp gains in New York and Europe.
And while the British pound edged down slightly against the dollar, it has stabilised around $1.33, well up from the 31-year-low of $1.3121 it touched Monday.
