6:00AM New York, 6:00PM Hong Kong – Hong Kong stocks gain led the rally in the Asia on fiscal stimulus package in the U.S. Crude oil and metal prices rose.

Hong Kong stock indexes traded in positive territory after calm returned to the financial markets as the U.S. Congress and the Bush Administration agreed on the stimulus plan. Commodities, metals, and energy prices surged higher.

While investors pushed stocks higher in the wake of fiscal stimulus, lower interest rate in the U.S. is likely to weaken dollar and push up prices of metals and crude oil. The move by the U.S. could be inflationary in China, India, and most countries around the world.

In Hong Kong trading Hang Seng Index gained 6.7% or 1,583.10 to 25,122.37, declining 0.3% for the week, while the China Enterprises Index of H shares rose 8.4% or 1,082.55 at 14,015.75, falling 3.8% for the week.

Daily trading turnover on the main-board was HK$126.7 billion compared to HK$142.4 billion yesterday.

Xinhua News Agency reported today that Shanghai Mayor Han Zheng said today at the first annual session of the municipal’s People Congress that the city aims to increase its Gross Domestic Product to Rmb 2 trillion by 2012.

Zheng added that the city will consolidate its position as a global financial and logistics center.

In 2007 Shanghai’s GDP was recorded at Rmb 1.2 trillion or Rmb 65,000 per capita.

The U.S. Congress and White House yesterday agreed on a fiscal economic stimulus package that will provide tax rebates of at least $600 per household with taxable income of less than $150,000. The rebate is likely to help consumer spending and help businesses to invest more in the business.

Businesses suffering losses can now reclaim taxes previously paid amounting to $70 billion.

Financial stocks rose as a result of renewed confidence in the global markets. China Construction Bank soared 9.8% to HK$6.19, China Life gained 8.4% to HK$33.50, Industrial & Commercial Bank of China spiked 8.1% to HK$5.2 and Bank of Communications jumped 11.6% to HK$9.89.

Bank of Communications also rose after Morgan Stanley increased the rating of the stock from “neutral” to “overweight”.

HSBC Holdings rallied 4.4 % to HK$120.5.

Energy stocks gained as well after crude oil prices from March delivery rose by $2.42 to $89.41 per barrel. Sinopec jumped 11.2% to HK$9.37 on the news.

Technology stocks also gained after Microsoft Chie Executive Steve Ballmer forecasted that annual sales will top $60.5 billion lifting Lenovo stock 15%.


5:00AM New York, 7:00PM Tokyo – Japanese stocks surged on Asiawide rally. Unemployment in December fell to 5% and consumer price index rose 0.2% in December.

Stocks in Japan participated in stockmarket surge across Asia as the U.S. stimulus plan positively influenced investor sentiment.

In Tokyo trading Nikkei 225 soared 4.1% or 536.38 to 13,629.16, down 1.7% for the week, while the broader Topix Index rose 4.7% or 60.32 to 1,344.77.

In the first section of the Tokyo Stock Exchange 11 billion shares worth 1.3 trillion yen were traded and in the seond section 429 million shares valued at 5.6 billion yen changed hands.