Weaker bond yields and brighter US data make regional equities attractive
Stock markets across the region rallied yesterday as investors weighed the prospect that the global economy could be turning a corner.
Economists said weakening bond yields and improved United States data was pushing Hong Kong's liquidity-driven market towards Asian equities.
The Hang Seng Index surged 2.12 per cent, passing the psychologically important 10,000-point barrier to close at 10,122.4 - its highest finish since December last year.
The rally was led by export-related stocks anticipating greater movement of goods to the US and H shares as China looks to rejuvenate its economy after the Sars outbreak.
Elsewhere in the region, South Korea's Composite Index jumped 2.26 per cent, Taiwan's Weighted Index rose 2.09 per cent, Singapore's Straits Times Index gained 1.91 per cent and Japan's Nikkei-225 Index rose 1.24 per cent.
William Belchere, head of Asia-Pacific economic and policy research at Merrill Lynch, said investors were anticipating markets were ready to bounce.
