Asian, European mkts rally, Nikkei posts biggest one-day gain

London, Oct 14 (PTI) Asian and European stocks rallied
for the second day in a row, with Japanese benchmark index
Nikkei skyrocketing 14 per cent as the rescue plans worth over
one trillion dollars mooted by various European countries
boosted market sentiments.

The stellar gains made by the American bourses overnight
which saw the key Dow Jones Industrial Average Index jumping
over 900 points also bolstered the shares in Asia and Europe.
London Stock Exchange's benchmark F.T.S.E. 100 Index
opened on a strong note, gaining over 4 per cent at 4,432.01
points.
After being closed for public holiday on Monday, Tokyo's
Nikkei joined the Asian rally, posting the biggest one day
gain ever. The key index shot up 14.15 per cent to 9,447.57
points, leading the way for the region's two other indices --
India's 30-share Sensex and Hong Kong's Hang Seng.
While the Sensex was trading at 11,545.17 points, up 2.09
per cent, Hang Seng rose 3.19 per cent to 16,832.88 points.
On the European front, France's Cac 40 Index and
Germany's Dax Index, jumped over four per cent in the early
hours of trading.
After pledging coordinated action to tide over the credit
turmoil, many G-7 nations came out with mammoth bailout
packages on Monday, primarily to shore up the fortunes of
troubled financial institutions.
Cac 40 climbed 4.09 per cent to 3,675.99 points whereas
Dax grew 4.15 per cent to 5,272.34 points.
On Monday, European economic majors, the U.K., Germany,
France and Spain had announced various bailout packages,
together having a worth over one trillion dollars.

Moreover, other major Asian indices, South Korea's Kospi,
Indonesia's Jakarta Composite and Singapore's Sraits Times
Index, made substantial gains.
U.S. President George Bush is expected to make a
statement on the country's response to the ongoing financial
crisis.
Further, the Treasury is anticipated to announce that the
government would be buying stakes in leading banks.
On Monday, in an effort to shore up the fortunes of the
country's troubled banking sector, Germany announced a nearly
500 billion Euro (685 billion dollars) package, while France
came out with a 100 billion Euro (137 billion dollars)
lifeline.
The U.K. government would be pumping in 37 billion euro
(64 billion dollars) to salvage the nation's three major banks
-- Royal Bank of Scotland, H.B.O.S. and Lloyds T.S.B.
Further, Spain has extended a lifeline of nearly 100
billion euro.
Meanwhile, calling for a greater role of the I.M.F. to
tide over the credit turmoil, Japan today said the country is
ready to offer financial support to the multilateral funding
agency to stabilise world markets.
In addition, the Japanese finance ministry would issue
30-year Japan government bonds (J.G.B.) with an offering
amount about 600 billion yen.
The Dow Jones Industrial Average Index on Monday closed
at 9,387.61 points, up 11.08 per cent while S&P 500 ended the
day with a gain of 11.58 per cent at 1,003.35 points.
In addition, the Nasdaq Composite Index rose 11.81 per
cent to close at 1,844.25 points.