Nothing like a lot of global monetary inflation to send buyers with new paper money in hand to buy stocks.
The Hang Seng Index ended 12.8% up to 14,329.85. Earlier in the day, the Hong Kong Monetary Authority reduced its benchmark interest rate by a half-point to 1.5%.
The Nikkei 225 Average reclaimed the 9,000-point level in Tokyo, ending up 10% at 9,029.76. The Bank of Japan could cut interest rates by a quarter-point to 0.25% Friday.
In Seoul, the Kospi soared 12% to 1,084.72. A South Korea rate cut is expected.
Yea, it's not like the accounting fundamentals of the companies somehow change magically overnight. Neither profit nor earnings increased.
ReplyDeleteAlso, regarding Korea, they actually cut 75 bps on Monday. The huge spike was because the Fed opened up a $30 billion currency swap with Seoul... whose banks are running on empty (no one wants the Korean Won which has fallen 40% this year).
Tim,
ReplyDeleteThanks for the update on Korea. I knew a rate cut was expected. I obviously missed the Monday announcement.