Wednesday, May 27, 2009

Asian Stock Markets Improved

Share markets in Asia have continued to rise on Wednesday as the Asian investors were encouraged by the slowly improving American market. It has been reported that the consumer confidence in the US has been increased to 54.9 in May from April’s 40.8. This indicates that American consumers will start spending more very soon and the export oriented Asian countries will have more demands in American markets. Having realized the condition, Asian investors were inspired to invest in local share markets.

That is the reason behind the rise in Asian stocks. However, the 5.3% surge in Hong Kong’s Hang Seng Index was mainly because of the government announcement for 16.8 billion Hong Kong dollar ($2.17 billion) stimulus package. Under this stimulus package, the residents of Hong Kong will be provided with subsidies for public services. Businesses will enjoy some other advantages like temporary tax cuts, getting released from some government fees. Japan’s Nikkei share market improved by 1.4% to 9,438.77 with Japanese investors hoping to increase exports in the coming days.

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