Buffett’s investment plan boosts stocks

Buffett’s investment plan boosts stocks

Hong Kong: Asian stocks closed mostly up on Wednesday after a massive investment by Warren Buffett in Wall Street bank Goldman Sachs Group Inc. offset concern about the $700 billion (about Rs32 trillion) US financial rescue plan.

Japan’s benchmark Nikkei index reversed early losses to close up 0.2%, on a day when the government pumped another $14.2 billion into the market, the sixth straight business day it has flooded the bourse with money.

Australian market picked up 1.2% and Hong Kong 0.47%, while Shanghai bounced back from early losses to record a 0.7% rise and Seoul added 1%. Singapore stayed flat. Taiwan closed down 0.8%.

Traders said sentiment was still swinging dramatically on worries over how to draw a line under the global financial crisis. “We continue to bounce from boom to gloom to boom to gloom," said Richard Herring, director at Australia’s Burrell Stockbroking Pty Ltd.

Buffett’s Berkshire Hathaway Inc. said it would invest $5 billion in Goldman, which along with Morgan Stanley agreed this week to give up its investment bank status and transform into a bank holding company.

The Tokyo Stock Exchange’s Nikkei-225 index rose 24.44 points to end at 12,115.03. The benchmark Hang Seng Index in Hong Kong closed up 89.14 points at 18,961.99.

In Singapore, the blue-chip Straits Times Index closed 1.09 points higher at 2,477.60.

In China, the benchmark Shanghai Composite Index, which covers A and B shares, was up 15.30 points at 2,216.81 on turnover of $7.2 billion dollars. The Shanghai A-share index added 0.69% to 2,328.15 points, while the Shenzhen A-share index jumped 0.88% to 619.07.

Shares of food and beverage producing companies rebounded in the afternoon, led by liquor maker Kweichow Moutai and Yantai Changyu Pioneer Wine, after they filed notices denying media reports that their products contain materials that cause cancer.