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Standard Chartered rose 23 per cent after the bank said trading in the third quarter was as expected. The bank, which makes 58 per cent of its profit in Asia, said it is "cautious" of the short term owing to current turbulence, though it is confident of its long-term prospects. The banking sector benefited this week as the Bank of England lowered its benchmark interest rate as part of a global push for lower interest rates.

Hong Kong has yet to follow but a reduction is increasingly likely as local interest rates have begun to stabilise and the stronger Japanese yen has eased pressure on the Hong Kong dollar. The Asian banks do not have exposure to hedge funds.