Asian shares boosted by US recovery hopes

Japan’s main Nikkei 225 index was up more than 3% in early trading today boosted by Federal Reserve chairman Ben Bernanke’s comments last Friday.

Mr Bernanke’s comments came at a speech in the annual central bankers’ retreat in Jackson Hole, Wyoming, and said the prospects for economic recovery “appear good”.

His comments, along with record US housing data released late last week sent European stocks and US stocks higher.

On Friday, the Dow Jones index in the US closed 156 points higher at 9,506 - a 9-month high, while London’s FTSE 100 index climbed 2% to close at 4,850.89. Germany’s Dax index rose 2.8%, while France’s Cac 40 added 3.1%.

Meanwhile, Hong Kong’s Hang Seng rose 2% today while markets in Thailand and South Korea gained 1.8%, Taiwan and Australia were higher by 2.8%, and India was up by 2%.

However, Ryuta Otsuka at Toyo Securities said: “The rally reflects the changes in external environments for Japan - that is mounting expectations that the US economy will recover.”