Asian Tyre Stock Jumps on US Auto Rebate Extension

The possibility of an extension to the US’s “cash for clunkers” auto rebate scheme has led to a bump in Asian stock prices for shares in Bridgestone, Hankook and others, according to Reuters reports. The US senate is mulling over a plan to offer 200 per cent of the original funding for its car sales booster scheme, since the billion dollar pot quickly evaporated. Purchasers can claim a rebate of up to $4,500 when they trade in old models for new, green alternatives.

The activity on Asian stock-markets reflects the optimism of the Obama administration, which believes the proposed extension will pass through the senate. Stock in Bridgestone, Hankook and Giti all climbed in value (5.1, 5.6 and 4.6 per cent respectively). According to the report, Ford has recently announced its first year-on-year monthly gain for nearly two years, thanks in part to the rebate scheme.