Asian markets rise but close off session highs (MarketWatch)  (22-09-2008)

HONG KONG (MarketWatch) -- The proposed $700 billion to bail out financials in the U.S., boosted Asiam markets on Monday; Australian shares soared after the country's securities market regulator banned short-selling and Chinese stocks in Shanghai rallied for a second straight session after the government last week unveiled initiatives to shore up the country's ailing stock markets.

Throughout the region markets rose led by financials, as Mitsubishi UFJ Financial Group and Kookmin Bank extended gains from the previous session after the rescue. But they came off their early highs as investors booked profits after Friday's regionwide surge.

The S&P/ASX 200 index surged 4% to 4,998.20 recently. Regular trading in Sydney was delayed by an hour, pending a clarification from the Australian Securities & Investments Commission. Trading began after the commission clarified that existing hedge positions would be exempt from the ban on short-selling, according to reports.

China's Shanghai Composite jumped 6.4% to 2,207.48, after it surged 9.5% on Friday. The index rose as high as 2,269.73 earlier in the day.

Hong Kong shares were volatile after steep gains on Friday, when the benchmark Hang Seng Index jumped 9.6%. The index was recently up 1% at 19,520.91, after falling as low as 19,137.67. The Hang Seng China Enterprises Index added 1.7% at 10,147.16.

In Tokyo, the Nikkei 225 Average advanced 1.7% to 12,117.13 in the afternoon, while the broader Topix index added 1.8% to 1,169.71.

Shares of Mitsubishi UFJ Financial Group jumped 3.7% in Tokyo and Australia & New Zealand Banking Group climbed 8.3% in Wellington and 6.7% in Sydney, while Kookmin Bank added 4.7% in Seoul.

Shares of Nomura Holdings Inc. climbed 7.7% after the Mainichi newspaper reportedly said Sunday that the brokerage was interested in buying the European operations of Lehman Brothers Holdings.

Shanghai-listed financials, including Industrial & Commercial Bank of China, Bank of China and China Construction Bank rose by their daily limit of around 10% after the government announced plans to directly buy shares in the lenders.

In Hong Kong trading, Bank of China fell 0.6% and China Construction Bank rose 1.8%, while ICBC shares gained 3.2%.

Source: MarketWatch