Asian shares mostly up on China bank report

HONG KONG: Asian markets mostly rose Wednesday, with Hong Kong and Shanghai boosted by reports that China´s central bank had pumped $81 billion into the country´s five biggest lenders, while traders also awaited a US Federal Reserve policy decision.

A rally on Wall Street increased buying incentives, with US shares helped by the China report as well as a feeling that the Fed will come up short of announcing a significant shift in its monetary policy after its meeting.

Shanghai ended 0.49 percent, or 11.34 points, higher at 2,307.89, while in late afternoon trade Hong Kong was up 0.97 percent and Singapore gained 0.57 percent. Seoul jumped 0.96, or 19.69 points, to close at 2,062.61.However, Tokyo gave up early gains to finish 0.14 percent lower, dipping 22.86 points to 15,888.67, while Sydney closed down 0.70 percent, or 38.1 points, at 5,407.3.A report on web portal Sina said the People´s Bank of China would inject 500 billion yuan ($81 billion) into the five top state-owned banks, with a view to boosting lending to businesses.

The move is a major stimulus injection following a string of weak data -- including on trade and industrial output -- that has raised questions about the state of the world´s number two economy and key driver of regional and global growth.

The injection, a three-month low-interest rate loan, is similar to a 0.5 percentage point cut to the ratio of cash China´s entire banking system must keep in reserve, according to Dow Jones Newswires.