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Markets in Asia rallied on Thursday following Wall Street’s rebound, helped by the largest jump in oil prices in more than two years. The jump was also supported by a take up of shares that were deemed to be in oversold territory.
Tokyo’s Nikkei 225 index jumped 3.54% or 684.32 points to 20,011.38 in the first few minutes of trading on Thursday. The broader Topix index rose 3.81% or 54.55 points, to 1,486.02.
Australian shares gained sharply on Thursday, with the S&P/ASX 200 index up in the largest intra-day percentage gain in almost one month, rising as much as 1.50%.
Singapore’s Straits Times Index bounced 1.38% or 41.6 points on Thursday morning, to 3,052.75 points, while Malaysia’s FTSE Bursa Malaysia edged up 0.36% or 6.07 points, to 1,678.67.
Chinese stocks rose minutes into trading, with the Shanghai Composite Index up 1.07% or 27.84 points higher at 2,525.14, while the Hang Seng Index was up 0.99% or 253.87 points at 25,905.25.
Wall Street surge helped by oversold equities, oil price gains
Overnight, the Dow Jones Industrial Average rose nearly 1,100 points or 4.98%, to 22,878.45 points, with most of United States’ (US) major indices rising by the largest daily percentage gains in nearly a decade by the end of trading day.
The broad-based S&P 500 surged 4.96% to 2,467.70 points, while Nasdaq jumped 5.84% to 6,554.36 points.
Analysts said the strong rebound is partly due to equities being oversold recently, as investors had been jittery over the US-China tariff war, and projections of a weaker economic outlook for next year.
The close to a 9.00% jump in US oil prices – the biggest in more than two years – also contributed to the bounce in equities.
Oil-related shares saw a good session, with Equinor ASA winning 5.36% and Chevron up 6.34%, following the rally in oil prices.