Bulls ran amok in Asian markets

It was a crazily bullish day in the Asian markets. Investors are so confident and their risk-appetite increased from the better-than-expected corporate earnings smaller contraction in the economic growth. The global manufacturing cycle seems to be increasing in momentum. Investors have set aside worries about the swine flu (H1N1) outbreak which could turn into a global pandemic.



Taiwan benchmark index soared 5.6 percent, after increasing more than 6 percent last Friday. China's PMI data seems to show recovery for the economy. Investors see mega deals that would spur Chinese investments in Taiwan.

Other big gainers in the region include Hong Kong and Singapore. Hong Kong Hang Seng Index surged 860 points or 5.54 percent to close 16,381 points, breaking above the 16,000 points technical resistance level. Singapore FTSE Straits Times Index rose 108.43 points or 5.56 percent to close above the 2,000 points psychological resistance level at 2,028.71 points.

China's Shanghai Composite closed 3.32 percent higher at 2,559.51 points. Despite the political uncertainty, Thailand's SET Index closed 2.96 percent higher at 506.26 points. Kuala Lumpur Composite Index went up 1.88 percent to close at 1009.38 points while Japan's Nikkei up 1.7 percent at 8.977.37 points on the first of May. Japan is on holiday for three days starting today.

Commodities prices up as well
U.S. crude oil went up 25 cents to $53.45 a barrel and gold price was up $8 an ounce at $893.80.

The US Dow Jones Industrial Average is expected to extend its rally after increasing 44.29 points on Friday. The Dow is currently at 8,212.41 points and is expected increase 2 percent today. NextVIEW's Chief Market Strategist Benny Lee added that the US may extend the gains this week before move into a correction.

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