Mon, November 10, 2008
Business > Markets

Stocks soar on economic stimulus plan

2008-11-10 07:41:19 GMT2008-11-10 15:41:19 (Beijing Time)  China Daily

Stock investors monitor the market changes at a securities office in Fuyang, Anhui Province Nocember 10, 2008. The Shanghai stock index rose 7.27% at the government's massive economic stimulus plan. [CFP]

Chinese stocks soared by more than 7 percent Monday on the news that, the State Council decided to stimulate its slowing economy by spending $586 billion before 2010 on Sunday.

The Shanghai Composite stock index closed at 1874.80 points, up 127.09 or 7.27 percent, the largest one-day gain recorded in the past month.

Beijing's giant stimulus package will bring $586 billion-worth of fiscal spending on railways, airports and other infrastructure, and on social welfare projects.

The massive government spending plan not only buoyed investors in China, but also gave a shot in the arm for all the other major stock bourses in Asia.

Asia investors are now anticipating that China's economy, the world's third largest, will remain on the fast lane, and keep sizzing up, acting as a source of growth for neighboring economies.

Tokyo's Nikkei 225 stock average surged 498.43 points, or 5.8 percent, to 9,081.43. Hong Kong's Hang Seng Index gained 712.56 points, or 5.02 percent, one hour before its closing. Markets in Australia and South Korea also joined the region's advance.

Asian companies seen as potential beneficiaries of the massive Beijing spending program were among the biggest stock gainers on Monday.

Hitachi Construction Machinery, which generates one-sixth of its sales in China, soared 17 percent in Tokyo. Doosan Heavy Industries & Construction, South Korea's largest power-equipment maker, jumped 14 percent, and Australian mining giant BHP Billiton rose 7.8 percent in Sydney.

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