Asian stocks advance on easing credit markets, US economic aid possibility (AP) (21-10-2008)

HONG KONG (AP) -- Asian stock markets ended higher again Tuesday, as credit markets showed further signs of easing and support by the chairman of the U.S. central bank for more measures to aid the country's troubled economy.

Japan's Nikkei 225 index climbed 2.46 percent to 9,226.70, and Hong Kong's Hang Seng Index ticked up about 0.1 percent to 15,331.34.

Stock markets in Singapore, Australia, mainland China and Thailand also gained.

Energy shares were gaining on the advance of oil prices, while financial shares also rose in the region with the likes of Mitsubishi UFJ and Australia & New Zealand Banking Group gaining over 4% and most other financials up with few exceptions, such as the National Australia Bank that was among the losers.

Bank-to-bank lending rates eased as governments around the world put plans in motion to increase liquidity and get money flowing again among companies.

India's central bank unexpectedly cut the nation's key lending rate by one percentage point and China signaled more government intervention to spur lending and stabilize the country's volatile financial markets.

Korea's market was the one decliner in this morning’s trade. The Kospi traded down about 1 percent amid lingering concerns about the economy despite government measures to commit $130 billion to bail out the country's financial system.

In Hong Kong, the interbank offered rate for three-month loans continued to slide, falling from 3.66 percent to 3.35 as credit markets loosened up around the world.

Overnight in London, the interbank lending rate for three-month dollar loans fell for the sixth day running Monday and by its biggest daily amount since January.

Source: AP