Abu Dhabi lifeline spurs recovery in Asian markets

Updated

In Asia Monday, China's Shanghai Composite Index gained 1.7% to close at 3,303 and Hong Kong's Hang Seng Index added 0.8% to end the day at 22,086. In Japan, the Nikkei 225 Index was nearly unchanged, slipping 0.02% to 10,106. U.S. markets are also set to rise.

News that neighboring emirate Abu Dhabi will supply $10 billion to help Dubai pay off debts, which have rattled investors who fear that the enormity of the desert kingdom's debt would create a second wave of financial turmoil, sent shares in Dubai investors higher. Hong Kong-listed HSBC (HBC), a major lender to Dubai World, surged 1.7%. Standard Chartered (SCBFF), which Bloomberg reports has made $18 billion of loans in the Middle East, shot up 3.9%.

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