After plunging 24 per cent last week, the Nikkei share average soared 13 per cent on Tuesday following a holiday on Monday. Hong Kong's Hang Seng index opened 5.1per cent higher. The benchmark Shanghai Composite Index was up by 3.16 per cent. In Taiwan, the main Taiex share index shot up 6 per cent at the open. In Seoul the Korea Composite Stock Price Index rose by 4.56 per cent. Singapore opened at plus 4 per cent whilst Kuala Lumpur gained 2.4 per cent. In Mumbai the stock exchange rose 10.41 per cent in the morning. In the Gulf, issues rose up to 20 per cent. The Saudi exchange was up by 9.47 per cent; in Dubai shares gained 10.53 per cent; in Qatar they were up by 8.45 per cent; in Abu Dhabi, by 6.92 per cent; and in Bahrain, by 5.18 per cent.
The u-turn came after European governments decided to inject about a trillion euros (US$ 1.35 trillion) into their banks. The United States also decided yesterday to support some of its larger banks after adopting a rescue plan for the financial system. European stock exchanges surged yesterday. Wall Street closed up by 11 per cent.
The price of gold rose by 1.7 per cent as did oil, up 2.5 per cent to US$ 83.2 a barrel.