European stocks jumped as much as 3%, spurred by talks of a second fiscal package from the US and French administration's move to throw a 14 billion-dollar lifeline to its banking sector.
LONDON: European stocks jumped as much as three per cent on Tuesday, spurred by talks of a second fiscal package from the US and French administration's move to throw a 14 billion-dollar lifeline to its banking sector.
The Asian shares reacted to the positive cues in a mixed manner, with Japan's Nikkei 225 and India's 30-share Sensex climbing more than three per cent while many other key indices including Hong Kong's Hang Seng slipped into the red.
Tracking the American bourses which saw the benchmark Dow Jones Industrial Average Index soaring over 400 points, most of the European shares gained little above one per cent.
Pitching for a second round of fiscal package US Federal Reserve Chairman Ben S Bernanke today said consideration of such an idea is appropriate as there is a risk of a "protracted slowdown".
Bolstered by the French government's decision to inject 14 billion dollars (about 10.5 billion Euro) to shore up the fortunes of six banks, the country's benchmark Cac 40 Index climbed 2.57 per cent to 3,537.23 points.
For the third consecutive day, Nikkei closed in the green, gaining 300 points or 3.34 per cent at 9,306.25 points.
India's benchmark 30-share Sensex went up over 400 points or 4.68 per cent to 10,701.41 points. India's Reserve Bank yesterday had reduced its key short-term lending rate (repo) by 100 basis points with immediate effect, a move that will help lower interest rates and spur consumption to keep the economy ticking.
In another act of rescue in the Europe, Dutch government pumped in USD 13.4 billion into the country's financial services giant ING and the announcement has propped the stocks in the region.
However, other major Asian indices - Hong Kong's Hang Seng, China's Shanghai SE Composite IX, South Korea's Kospi and Singapore's Straits Times fell.
Continuing the spree of bailout plans in Europe, the Swedish administration on Monday annouced it would pump nearly 205 billion dollars into the country's banks.
The Dutch government had yesterday pumped USD 13.4 billion into the country's financial services giant ING.
Further, London Stock Exchange's key FTSE 100 Index and Germany's Dax Index were trading in the positive territory.
Hong Kong's Hang Seng dipped 1.84 per cent to 15,041.17 points. A day after China reported one of the slowest growth rates, the nation's Shanghai SE Composite IX marginally declined to 1,958.53 points.
For the third quarter, China's economic growth stood at 9 per cent. Reportedly, this is the first time in four years that the nation's growth is in single digits.
South Korea's Kospi went down about one per cent to 1,196.10 points. Over the weekend, South Korean administration announced a bailout plan worth USD 130 billion, the biggest such step in the Asian region.
Singapore's Straits Times Index closed at 1,920.79 points, down 0.95 per cent.
On Monday, Dow closed at 9,265.43 points, up 4.67 per cent while S&P 500 Index rose 4.77 per cent to 985.40 points. In addition, Nasdaq Composite Index went up 3.43 per cent to 1,770.03 points.
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