Stocks in Singapore, Hong Kong, Tokyo and Seoul have rallied as confidence ebbed back into the battered Asian markets, following a second day of rises in New York.

Donald Tsang, financial advisor to the Hong Kong government: "tail end of turmoil" (3'04'')

Wall Street's gains provided welcome relief to traders and investors in Asia, who have watched their markets collapse in the wake of a region-wide currency crisis.

Traders said the region may have received an important reprieve

Even Indonesia, which has been at the centre of the region's most recent worries, rose amid optimism that the government of President Suharto would reach agreement with the International Monetary Fund (IMF) on how to manage the country's economic chaos.

The Jakarta Stock Index opened 3.46% higher at 395.35.

In Singapore, the Straits Times Industrials index (STI) surged 44.07 points or 3.91% to 1,200.59 in the first 10 minutes of trading.

"Everybody rushed in to buy this morning," said a trader at a Singapore brokerage. "There was no time even to sell."

With the rise in New York stocks, some traders said the region may have received an important reprieve.

The sales director at Vickers Balls in Hong Kong, Antony Mak, said: "We are temporarily out of the woods. It seems like south-east Asia is stabilising."

Region-wide rise

In Hong Kong the Hang Seng index jumped 3.44% shortly after opening to trade above the 9,000 level.

Tokyo stocks opened in similar optimism. In addition to the jump in US stocks, Tokyo traders cheered a newspaper report that some of the country's beleaguered banks may receive public money as part of efforts to shore up Japan's crumbling financial system.

According to local media reports, big money-centre banks, including Sanwa Bank 8320.T and Bank of Tokyo-Mitsubishi 8315.T, are considering taking the government funds, which could be the first step to a broader package for the banking system.

At midday (local time) the Nikkei 225 average was up 297.01 points or 2.01% at 15,052.95.

In Seoul, the stock market surged more than 4% at the opening, amid news that labour unions will participate in discussions with management and the government on more flexible employment policies.

Unions had refused to participate in the talks, arguing that revision of existing labour policies would lead to more layoffs.

The Korea Stock Price Index (KOSPI) rose 482.34 points or 4.01% shortly after the opening as foreign investors flocked back to a country that two weeks ago some thought might trigger a global recession.

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