Southeast Asian stocks and currencies rose sharply to lead robust gains across the region as investors returned to emerging markets in droves after the U.S. Federal Reserve’s surprise move to leave its stimulus measures intact.
The Nikkei 225 index in Tokyo vaulted 260.82 points, or 1.8%, to 14,766.18
Hong Kong’s Hang Seng Index leaped 385.06 points, or 1.7%, to 23,117.45
The Fed’s decision to keep up its bond-buying spree is a green light for global investors, after fears of a change in U.S. monetary policy resulted in a volatile summer for Asia.
The Australian dollar was trading at $0.9513 U.S., close to a high it reached overnight, while the yen softened to ¥98.59 per dollar compared with ¥97.93 late Wednesday in New York.
Japan was also caught up in the declines earlier in the summer, though its recent gains have now put it closer to a bull market — defined as a 20% rise from a recent low.
Thursday’s gains cemented strong gains for September, with a number of markets already notching up substantial returns for the month. The Nikkei is up 10.3% since the end of August and Thailand’s SET is up 14.7% so far this month.
Regional gold miners jumped after gold knocked 4.2% higher overnight after the Fed move, with Newcrest Mining up 7.9%, Zhaojin Mining Industry surging 12% and Zijin Mining Group higher by 10.4%.
In other markets;
Markets in Korea, Taiwan and Shanghai were closed
The Singapore Straits Times Index gathered 57.93 points, or 1.8%, to 3,251.78
In New Zealand, the Exchange 50 Gross Index added 49.21 points, or 1.1%, to 4,753.04
In Australia, the S&P/ASX 200 recaptured 57.41 points, or 1.1%, to 5,295.55
