Investors in China have been pouring money into real estate and stock market as banks pay interest rate less than the prevailing inflation. The recent surge in stock market indexes and real estate prices in urban areas is a reflection of current account surplus and rising trade surplus. The macro picture for stock markets and real estate is not likely to change unless the trade surplus declines dramatically.

PetroChina closed higher by 5%.

Sensex in India surged 3.6% to close at 19,854.12 after Gujarat State election returned pro-business BJP party with a higher margin and just short of two-thirds majority.

Banks led the gainers in the session. HDFC, the housing finance company soared 6%. Software exporters gained led by a 6% rise in Wipro. GAIL, Gas Authority of India soared 9% and ONGC added 4.8%.