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Investor Fears Ease Out As Asian Shares Gain Momentum, China's Market Stabilizes

By February 17, 2016 at 5:24 am
Investor Fears Ease Out As Asian Shares Gain Momentum (Photo : ChinaFotoPress | Getty Images News)

TOKYO, JAPAN - Investor fears have eased out as Asian shares gained momentum on Tuesday after Chinese market stabilized a little, oil prices climbed up and consumption data of U.S. became stable, pushing investors to seek for bargains.

According to the report of Reuters via The Economic Times, the MSCI shares outside Japan rose up by 1.1 percent, with shares of mailand China becoming stronger by 2.7 percent to a three-week high, getting the boost from the country's bank lending sector.

"Before the start of the Lunar New Year, there were worries about Chinese shares and a possible further fall in the yuan," said Koichi Yoshikawa, financial markets executive director at Standard Chartered Bank. "But since the resumption of trading on Monday, Chinese markets have been surprisingly steady."

Leading in gains in the Asian region, China's Shanghai Composite Index closed 3.3 percent more at 2,836.57. Hang Seng Index, Hong Kong's stock market index, climbed up by 1.1 percent.

Meanwhile, Japan's Nikkei Stock Average closed the day with 0.2 percent increase after it had recorded a 7.2 percent on Monday, getting back a part of last week's 11 percent slump - the biggest since 2008.

"It is partly a reaction after such big falls last week," said Hirokazu Kabeya, Daiwa Securities' chief global strategist. "Solid U.S. data is also improving investor sentiment given that they are counting on U.S. growth to lead the global economy."

In the report of The Wall Street Journal, energy stocks jumped and crude prices went up a little in the afternoon as the energy ministers from top oil producers, Russia and Saudi Arabia, met in Qatar to talk about oil production, firing speculations on the possible freeze of the global oil glut.

"As much as we continue to believe that this is yet another meeting that would yield nothing, the markets remain wary of any sudden agreement that major oil producers could come to," said analyst Daniel Ang of Phillip Futures in Singapore.

Selling at $35.47 per barrel, Brent crude increased 6.2 percent more. Meanwhile, shares in the energy sector of Australia and Hong Kong surged 4.8% and 3.3% respectively.

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