Asian shares rebounded on Monday after a heavy sell-off in global equities last week, as United Arab Emirates central bank moved to boost its banking sector. Hong Kong's Hang Seng index surged by more than three percent in morning trade to stand at 21,833.75. In Tokyo, shares rose 2.39 percent with confidence also buoyed by a rise in factory output and government plans for an extra stimulus of 31 billion dollars this fiscal year to tackle the surging yen and weak equities.
However, the recent volatility was "an important reminder that all is not yet well in the global economic and financial system"..
The central bank gave no figures for the amount of liquidity being made available, but its step helped boost confidence in Asia.
In Hong Kong, shares in the two banks with the largest exposure to Dubai perked up. HSBC was 3.9 percent higher at 90.35 Hong Kong dollars, after plunging 7.6 percent Friday. The other bank was Standard Chartered and it showed similar reaction.
Commodities also recovered ground in the broader market recovery. Oil was higher in Singapore with New York's main contract, light sweet crude for January delivery, gaining 49 cents to 76.52 dollars a barrel. Hong Kong gold went up to 1,175.00 US dollars an ounce. Markets were also waiting for interest rate decisions in Europe and Australia later this week.
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