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Tokyo's sharp recovery inspires blue-chip rally

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SCMP Reporter

Analysts expect the Hang Seng Index to test 15,800 level as the correction is almost over

The Hang Seng Index bounced back yesterday following the sharp recovery in Tokyo stocks that reflected on most Asian markets.

After a 926-point slide since Tuesday, Japan's Nikkei-225 Index rebounded from the Livedoor scandal, rising 2.31 per cent.

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The positive sentiment stretched to other Asian markets, pushing the Hang Seng Index up 189.21 points, or 1.22 per cent, to finish at 15,670.42. The rally took the index back to the technically crucial 10-day moving average of 15,500.

Shares worth $32 billion changed hands, down slightly from $33 billion on Wednesday.

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Rumours of a merger between the mainland A-share and B-share markets continued to fuel the H-share index, which rallied 161.22 points or 2.71 per cent to close at 6,103.43, the highest since September 15, 1997.

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