Asia petrochemical shares surge on hopes of eurozone debt plan

27 September 2011 11:12  [Source: ICIS news]

SINGAPORE (ICIS)--Asian petrochemical shares rebounded on Tuesday after days of heavy falls, with crude prices on an upswing as investors welcomed the drafting of measures meant to address the eurozone's debt woes.

At 17:40 Singapore time (09:40 GMT), US crude futures were up by $2.40/bbl at $82.64/bbl.

Among the major petrochemical companies in Japan, Mitsubishi Chemical closed 3.70% higher, Mitsui Chemicals gained 4.06% and Asahi Kasei was up by 1.08%, with the benchmark Nikkei 225 index rising by 235.82 points or 2.82% to 8,609.95.

In South Korea, LG Chem was up by 7.35%, SK Innovation rose by 8.99% and Honam Petrochemical was 6.91% higher as the KOSPI composite index gained 83 points or 5.02% to reach 1,735.71.

In China, the Shanghai composite index rose by 21.87 points or 0.91% to reach 2,415.05. The Hang Seng exchange in Hong Kong jumped by 722.75 points or 4.15% to settle at 18,0130.55 at the close of trade. PetroChina shares trading in Hong Kong were up by 5.43%.

In Malaysia, PETRONAS Chemicals went up by 4.52%, with the FTSE Bursa Malaysia (Kuala Lumpur composite index) rising by 32.40 points or 2.43% to close at 1,364.20.

Market sentiment improved as details of a massive rescue package to deal with the eurozone debt crisis were being hammered out.

“Talk of a €2,000bn [$2,700bn] bailout plan for Europe has lifted markets. [It] is the sort of size that most reckon would 'finally' put the matter [of debt problems] to rest,” Singapore-based DBS Bank Research said in a note to clients.

Additional reporting by Samuel Wong

($1 = €0.74)

By: Pearl Bantillo
+65 6780 4359

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