Advances in the Asia Pacific market largely came after Larry Summers, the man tipped to replace Fed chairman Bernanke, pulled out of the race, taking with him fears that central bank would aggressively start reeling in its $85 billion a month stimulus. Mr Summers' withdrawal elevated Janet Yellen, a supporter of quantitative easing, to become the main contender to succeed Bernanke.
Summers was perceived as unenthusiastic about the Fed's aggressive bond-buying program, dubbed quantitative easing, which helped push down interest rates to spur lending and jumpstart economic growth following the financial and economic crisis five years ago
Among Asia Pacific bourses, the Australian share market advanced today, sending the benchmark S&P/ASX200 higher by 0.54% to finish at 5248, a new five-year high. The rally in the Sydney was driven by shares of precious metal miners, oil & coal producers, industrials, materials & resources, financials and retailers companies.
Shares of precious-metals miners were the biggest winner on the ASX, on the back of sharp rally in bullion prices. Evolution Mining gained 4.3% to A$0.845, Kingsgate Consolidated jumped 5.6% to A$1.79 and Newcrest Mining rose 5.1% to A$12.63.
Meanwhile, the New Zealand's benchmark NZX 50 index rose 0.9% or 42.7 points to finish the session at 4,693.6, an all-time high, as confidence about continued economic growth and a recovery in Australia's housing market lifted stocks such as Fletcher Building.
Fletcher Building, which counts Australia as its second-largest market, gained 2% to NZ$9.65 and has gained 13% this year.
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China's shares declined for second session in row on profit taking, dragging the benchmark Shanghai Composite index lower by 0.22% to finish at 2231.40. Declines in the Shanghai market came on heightening worries about market overheating following strong recent run-up, with shares in material producers, financial companies and airlines led declines.
Jiangxi Copper Co. and Anhui Conch Cement Co. led declines for Chinese material and industrial companies with losses of at least 1.4%. Shanghai Pudong Development Bank Co tumbled 3.5%, paring a rally to 36% since Aug. 22, when the Ministry of Commerce said the city's free-trade zone proposal had been approved in July. China Eastern Airlines Corp slid 5% after valuations jumped to a one-year high.
Hong Kong's shares climbed up sharply as worries on Fed's tapering abated after Larry Summers withdrew from contesting the Fed Chairmanship. The Hang Seng Index ended up 1.47% to 23,252.
Among the 50 HK blue chips, 47 rose and three fell. Macau gaming players rebounded after Friday's retreat. Galaxy jumped 5.7% to HK$55.35, while Sands China gained 3.2% to HK$47.75, making themselves the top blue-chip winners.
Indian benchmark indices edged higher in choppy trade as data released by the government today, 16 September 2013, showed that inflation based on wholesale price index (WPI) accelerated in August 2013, firming expectations that the central bank may again hold off cutting interest rates at its monetary policy review on Friday, 20 September 2013. The S&P BSE Sensex was up 9.71 points or 0.05%, to finish at 19742.47.
Shares of Indian pharma major Ranbaxy Laboratories tumbled a staggering 30% in a single trading session after the US Food and Drug Administration issued an import alert against company's Mohali plant. Shares of most private banks rose. IT stocks declined as the rupee surged against the dollar. Index heavyweight and cigarette maker ITC gained. Another index heavyweight Reliance Industries (RIL) declined.
Elsewhere, Indonesia's JKSE Composite rose 3.35%, Singapore's Straits Times Index added 1.9%, South Korea's KOSPI added 0.96% and Taiwan's Taiex gained 1.39%. Malaysia's KLSE Composite closed 0.09% down. Japan share market closed for holiday.
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