Asian markets extend gains as Shanghai soars

Asian shares swept higher yesterday, with Shanghai leading the charge after China replaced its securities regulator, while a rise in oil prices cheered investors across the region.
Equities extended last week’s sharp rally, notching gains almost across the board after news that Russia and Saudi Arabia may freeze production sent crude higher.
Chinese shares closed up more than 2% after the head of the securities regulatory body who was in place during last year’s market rout was dismissed, while Japan’s exporters gained on a weaker yen.
But traders remained cautious after a rollercoaster start to the year. The pound sank after London’s popular mayor said he would campaign for Britain to leave the EU in a June referendum.
“People are willing to take risk again,” Karl Goody, a private wealth manager at Shaw and Partners in Sydney, told Bloomberg News.  “People are looking at the sell-off this year and saying: enough is enough, there’s been enough pain now.”
Financial markets have been on edge as fears the world economy is stalling have sent stocks and commodities tumbling and hammered oil prices, already weighed down by a global supply glut.
Crude flirted with 13-year lows this month, diving below $30 a barrel, but news that major producers Saudi Arabia and Russia plan to cap production has eased some concerns the market will be oversupplied for years.
At around 0845 GMT yesterday, US benchmark WTI for delivery in March was up 84 cents at $30.48. Brent, for April, advanced 75 cents to $33.75 a barrel.  Chinese shares jumped after state media reported on Saturday that the head of the country’s securities regulator, Xiao Gang, would be replaced by Liu Shiyu, chairman of the Agricultural Bank of China.
China has been struggling to reassure investors it has a grip on its financial markets after a rout last summer wiped trillions off equities, prompting the government to step in and tighten regulations.
Shanghai fell 23% in January, the world’s worst-performing major market.
Its benchmark index closed yesterday up 2.35%, while Hong Kong ended 0.93% higher. Tokyo added 0.90%.