KUALA LUMPUR: Asian markets rallied in the morning session on May 7 on better US jobs reports and a reassurance that US banking industry could cope with the recession.

At 12.30pm, the KL Composite Index was up 5.57 points or 0.54% to 1,029.53. Turnover was 1.85 billion shares valued at RM1.34 billion. There were 424 gainers, 226 losers and 235 counters unchanged.

Asian markets were traded higher with Japan’s Nikkei 225 up 4.22% to 9,356.15, Hong Kong’s Hang Seng Index edged up 0.79% to 16,967.04 and Singapore’s Straits Times Index rose 0.22% to 2,183.91. Shanghai’s Composite Index fell 0.86% to 2,570.13.

Light crude oil rose 27 cents to US$56.61 but crude palm oil futures fell RM14 to RM2,611.

Reuters reported US regulators had ordered some of the largest US banks to get tens of billions of dollars of capital to cushion themselves in the event of a deep economic downturn.

While the capital shortfalls at the 19 largest US banks are much larger than analysts had expected, bank shares soared, extending a two-month rally as investors got more clarity over how well the industry will cope with perhaps the most severe recession since World War II.

Bursa rose 25 sen to RM7.10, LPI 20 sen to RM10.20 and Dutch Lady 15 sen to RM10.10. Magna rose 24 sen to RM2.33, Petra 21 sen to RM2.16, Suria 17 sen to RM1.21 while Parkson gained 16 sen to RM4.74.

Among plantations, NSOP added 16 sen to RM3.98 and Far East 15 sen to RM10.10.

SAAG was the most active with 108 million shares done, adding three sen to 33.5 sen. Mulpha added three sen to 49 sen while Scomi gained six sen to 55.5 sen.

BAT was the top loser, down 50 sen to RM42.25m Hap Seng lost 18 sen to RM2.45 while KFCH, MISC-F and UMW shed 10 sen each to RM6.85, RM8.65 and RM5.85.