Hang Seng Index

Markets recover

PUBLISHED : Friday, 13 August, 1999, 12:00am
UPDATED : Friday, 13 August, 1999, 12:00am

Regional stock markets rebounded yesterday with the Hang Seng Index rising 2.7 per cent following gains on Wall Street after an official report showed little inflationary pressure in the US economy.

Signs of inflation in the United States could lead to an increase in interest rates there, which in turn could drive up the costs of borrowing in Hong Kong and other Asian capitals.

Singapore and Tokyo's main stock market indices both rose 1.2 per cent.

The Hang Seng Index's rise to 12,779.75 points also came on subsiding concerns over a yuan devaluation.