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Daily Scan: Abenomics pulls Japan from the brink, Asia rallies

By NexChange
Capital Markets

The prospect of more stimulus in Japan helped drive a 7.7% surge  on the Nikkei today, dragging it back from a seven-month low. The rebound came after Prime Minister Shinzo Abe told a Bank of America-Merill Lynch conference in Tokyo today that he pledged to cut corporate tax rates by a least 3.3% next year, AP reports.

The rest of Asia was a field of green by the end of trading. With the Shanghai stock market closing 2.3%, bringing it a full 10% higher than its late August low, indicating the selloff has already hit its trough.

The global surge is now set to continue in Europe, with the pan-European FTSEurofirst 300 index up more than 2%in early trade. This is how the other Asian markets performed:

Hang Seng: +4.10%
Jakarta Comp: +0.69%
KLSE Comp: +1.02%
Straits Times: +1.48%
Seoul Comp: +2.96

Here is what else you need to know:

World Bank chief economist warns Fed to delay rate rise. Chief economist Kaushik Basu has warned the US Federal Reserve that it risks triggering “panic and turmoil” in emerging markets if it opts to raise rates at its September meeting and should hold fire until the global economy is on a surer footing. Financial Times (paywall)

Southeast Asian reserves shrinking rapidly. The lowering of the yuan's reference rate and expectations of a U.S. interest rate hike has spurred sell-offs of South Asian currencies.  From July to August, Malaysia and Indonesia saw the steepest drops in their currency reserves. Nikkei
Bangkok shrine attack suspect 'gave device to bomber'. Thai police say a key suspect in the Bangkok shrine bombing has confessed to giving a bag containing a device to the man who carried out the attack that killed 20 people at the Erawan Shrine on August 17. BBC
China leader firms up plans for US state visit. President Xi Jinping will head to the US for a lengthy and elaborate state visit later this month. Hopes of any breakthrough are low for the president's trip, which begins in Seattle and ends at the United Nations in New York. SCMP (Paywall) 

Australia to take in 12,000 Syrians. Amid growing pressure to do more to help those displaced by violence in the Middle East, Prime Minister Tony Abbott announced that Australia would accept 12,000 Syrians from persecuted minorities on top of the 13,750 overall intake of confirmed refugees for 2015. BBC

Queen becomes UK's longest reigning monarch. Queen Elizabeth II is to become Britain's longest-reigning monarch today when she passes the record set by her great-great-grandmother Queen Victoria: 63 years and seven months. BBC

Netflix to launched in Hong Kong, Singapore next year. US streaming service said on Wednesday it will launch the new Asia services in early 2016 as part of a larger global expansion. Netflix, which recently launched in Japan, will also roll out coverage to South Korea and Taiwan. SCMP (pay

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