Asian Stock Markets Recover on Oil Prices Rebound
Asian stock markets have continued recovery, picking up on a rebound in oil prices and a strong lead from the US and Europe.
The recovery comes after a sharp sell-off earlier in the week.
Meanwhile, hints from European Central Bank (ECB) on January 21 that it might consider more monetary easing helped lift investors’ confidence.
In Japan, the Nikkei 225 index jumped 5.9% to close at 16,958.53, after hitting at 15-month low the previous day.
Chinese markets also managed to recover some of the past days’ heavy losses.
The mainland benchmark Shanghai Composite gained 0.8% to 2,901.32 points, while Hong Kong’s Hang Seng rose 2.2% to 18,950.19 points.
Markets were encouraged by a recovery in oil prices, which had hit 12-year lows earlier in the week.
Brent crude was up 98 cents at $30.23 a barrel, while US crude was 85 cents higher at $30.38 a barrel.
In Australia, the S&P ASX 200 closed by 1.1% higher, at 4,916.00 points.
Among the market’s standout performers were several of the big oil and commodity companies, buoyed by a rise in the oil price.
BHP Billiton and Rio Tinto were 7.5% and 3.4% up respectively, while Santos climbed 11%.
Stocks of winemaker Treasury Wine Estates also stood out, jumping as much as 17.5% to a record high after the company provided strong full-year profits guidance in a market update.
In South Korea, the benchmark Kospi index followed the region’s trend, closing the day 2.1% higher at 1,879.40 points.
On January 21, shares in Europe and the US closed higher, helped by comments from ECB president Mario Draghi.
After the ECB had kept eurozone rates on hold, Mario Draghi hinted that the bank might take more action to try to stimulate the eurozone economy later this year.
He said the bank would “review and possibly reconsider” monetary policy at its next meeting in March.
Mario Draghi also said eurozone rates would “stay at present or lower levels for an extended period” and there would be “no limits” to action to reflate the eurozone.