A pedestrian is reflected on an electronic board showing graph of the recent fluctuations of the Japan’s Nikkei average outside a brokerage in Tokyo. Asian stocks extended gains yesterday as a sharp rebound on Wall Street and gains in battered Chinese shares eased fears of a deep and protracted global market rout, while the dollar rallied as risk aversion eased.

AFP/Tokyo

Asian stocks rose yesterday, with Shanghai leading the gains after a rally on Wall Street cheered investors and eased fears of a deep and lasting global market rout.
Comments from a senior US Federal Reserve official that the case for a rate rise in September had weakened and upbeat durable goods data also boosted sentiment, pushing up the dollar.
Shanghai led the charge, closing up 5.34%, or 156.30 points, at 3,083.59, while Hong Kong gained 3.60%, or 758.15 points, to close at 21,838.54.
Tokyo stocks closed up 1.08%, or 197.61 points, to finish at 18,574.44, while Seoul gained 0.73%, or 13.91 points, to 1,908 and Sydney rose 1.17%, or 60.53 points, to 5,233.30.
Asian shares had ended the day mixed after a volatile session that saw Shanghai veer wildly between losses and gains as dealers weighed news that China’s central bank had cut its key rates and moved to free up cash for banks.
Yesterday’s rises came after William Dudley, the head of the New York branch of the Fed, said the reasons for a rate hike in September had been dampened by the turmoil gripping financial markets.
Dealers had feared that a rise in US rates – their first in almost a decade – would heap pressure on the world economy at a time when a slowdown in China is already expected to drag on growth.
A better-than-expected official US manufacturing report showing orders for durable goods – products expected to last at least three years – jumped 2% in July also added to the optimism.
“Strong durable goods numbers out of the US and tempting valuations saw a phenomenal bounce in all US equities,” said Angus Nicholson at IG Markets.
“William Dudley’s speech seemingly put to bed any prospect of September rate hikes... I think the market will largely be looking towards December as the most likely date if a rate hike happens this year.”
In currency markets, the dollar gained and dealers sold the yen – seen as a safe haven during times of market turmoil – as risk aversion eased.
In Tokyo trading, the dollar bought 120.21 yen, up from 119.98 yen in New York. This week it touched a six-month low of 116.18 yen.
The euro traded at 135.81 from 135.72 yen, and fetched $1.1296, compared to $1.1312 in US trade.
Gold, also seen as a safe haven when markets are going haywire, gave up gains as sentiment improved to trade at $1,127.40, down from $1,131.80 late Wednesday.
Oil rose in Asia as dealers digested a mixed US energy report showing a dip in crude inventories, but barely any decline in production despite sinking prices.
US benchmark West Texas Intermediate was trading at $39.68, compared to $38.60, while Brent crude was at $44.28, from $43.14.
In other markets, Bangkok rose 2.87%, or 37.95 points, to 1,358.03; Kuala Lumpur rose 1.35% or 21.33 points to close at 1,601.70; Jakarta ended up 4.55% at 192.90 points or 4,430.63;
Singapore surged 2.52%, or 72.43 points to close at 2,945.43; Taipei rose 1.41%, or 108.96 points, to 7,824.55; Wellington closed up 1.02%, or 57.17 points, at 5,634.95 and Manila rose 2.25%, or 154.17 points, to 7,022.09.