On Monday, Oct 13 the US government agreed to take $25 billion stakes in several big banks in a bid to shore up the banking system and arrest the financial crisis. The move follows pledges by the governments of Britain, Germany, France and other European countries of more than 1 trillion euros to bolster their own banks.
Wall Street rebounded from its worst week on record with its best single day ever on Monday, as countries around the world pledged to infuse liquidity into their struggling banks to prop up the global financial system.
The Dow Jones industrial average soared 936.42 points, or 11.08 per cent, to end unofficially at 9,387.61 while the Standard & Poor's 500 Index jumped 104.06 points, or 11.57 per cent, to finish unofficially at 1,003.31. The Nasdaq Composite Index surged 194.74 points, or 11.81 per cent, to close at 1,844.25.
Asian markets joined the global party. After plunging 24 per cent last week, the Nikkei share average soared 12.4 per cent on Tuesday after a holiday on Monday. Australia's S&P/ASX 200 rose 5.9 per cent after posting its biggest daily gain since October 1997 on Monday. Hong Kong's Hang Seng surged 2.72 per cent, Singapore's Straits Times climbed 5.12 per cent and South Korea's Kospi jumped 4.25 per cent.