Pedestrians pass in front of a sign showing the Hang Seng Index in Hong Kong (file). The benchmark powered up 1.75% yesterday, or 333.99 points, to close at 19,455.33
AFP/Tokyo

Asian shares were widely up yesterday, led by a sharp rise in Hong Kong, amid hopes of Chinese and US stimulus measures ahead of Federal Reserve chairman Ben Bernanke appearing before Congress.
Hong Kong’s benchmark Hang Seng Index powered up 1.75%, or 333.99 points, to close at 19,455.33, while the Shanghai Composite Index rose 0.62%, or 13.23 points, to 2,155.20 on bargain-hunting after hitting a three-year low on Monday.
In Tokyo the Nikkei climbed 0.35%, or 30.88 points, to 8755.00, while Sydney’s ASX 200 rose 0.87%, or 35.7 points, to 4,140.8, and the Kospi in Seoul was up 0.23%, or 4.17 points, at 1,821.96.
Elsewhere in Asia; Singapore was up 0.54%, or 16.05 points, at 3,014.80; Taipei rose 0.52%, or 36.96 points, to 7,127.00; Kuala Lumpur ended 0.19%, or 3.19 points, higher at 1,639.15; Bangkok added 0.82%, or 9.96 points, to 1,224.21; Manila fell 0.24%, or 12.87 points, to 5,285.12; Wellington edged up 0.04%, or 1.53 points, to 3,468.86, while Jakarta closed 33.20 points higher, or 0.82%, to 4,080.67.
There were several factors behind Hong Kong’s surprise rise, analysts said, including short-covering and hopes of a lending boost in China and quantitative easing in the US.
In Australia, IG Markets analyst Cameron Peacock said: “Perhaps today’s (Tuesday) price action is just a function of the market being sick and tired of all the doom and gloom.
“Perhaps the worst case scenarios for Europe, China, and the US are already priced into the market.”
China said last Friday economic growth slowed to 7.6% year-on-year in the second quarter, its lowest level in more than three years.
The figures have led to hopes Beijing will take steps to boost the world’s second-largest economy, including loosening restrictions on bank lending.
Alvin Cheung, associate director at Prudential Brokerage, told Dow Jones Newswires: “The talk is that China will cut reserve requirement ratio soon, perhaps as soon as Friday, that’s why we outperformed.”
Investors were also looking to two days of Congress testimony by Bernanke, scheduled to start later yesterday, for hints of a new round of stimulus by the Federal Reserve.
But in Tokyo, Barclays Bank chief currency strategist Masafumi Yamamoto warned: “If there is no indication (for more easing) from him, stocks and long-term US Treasury yields will fall on disappointment.”
The International Monetary Fund said Lisbon was on track to narrow its fiscal deficit under tough austerity measures required under the €78bn joint IMF-European Union rescue programme launched in May 2011.
The greenback traded at ¥79.03 from ¥78.83 on Monday.