HONG KONG, Dec 26: Asian stocks closed mostly up on Wednesday as investors opted to look on the bright side during the holiday season despite the financial woe afflicting the US economy.
Tokyo was up 0.65 per cent but trading was light with many investors still enjoying the Christmas and New Year break.
Among the region’s other major markets, Shanghai rose 0.62 per cent, Singapore ended 1.12 per cent higher and Mumbai finished 1.74 per cent up.
But Taipei fell 0.13 per cent and Seoul was down 0.7 per cent.
Some smaller markets posted substantial gains, including Jakarta, up 2.1 per cent, and Manila, which rose 2.3 per cent.
Analysts said investors had been cheered by moves to shore up banks hit by the default crisis in the US subprime mortgage sector, which is comprised of now struggling borrowers with poorer credit histories.
The crisis has led to billions of dollars in losses and pummelled share prices globally. Despite the cheerier mood in Asia, analysts said the crisis still threatened a slowdown or even recession in the US.
The markets in Hong Kong, Sydney and Wellington were shut.
TOKYO: Japanese share prices advanced for a fourth straight session as market worries about the fallout from the recent global credit squeeze continued to recede, dealers said.
But they said trading was thin, with many foreign investors off for the year-end holidays.
The Tokyo Stock Exchange’s benchmark Nikkei-225 index added 100.95 points or 0.65 percent to 15,653.54.
The broader Topix index of all first-section shares rose 12.44 points or 0.83 percent to 1,508.47, regaining the symbolic 1,500-point level.
Gainers outnumbered decliners 1,426 to 228, with 70 issues unchanged.
Volume traded dropped to 1.39 billion shares from 1.42 billion shares on Tuesday.
Even after the Nikkei index gained more than 520 points in the previous two sessions, “investors have yet to feel the market is overheated,” said Hiroichi Nishi, equity chief at Nikko Cordial Securities.
Hopes of a market rally in January as well as a stable yen were among the factors supporting sentiment, he said.
Exporters were broadly higher, with Toyota Motor Corp. up 80 yen or 1.3 percent at 6,180 and Nissan Motor Co. rising 19 yen or 1.6 percent to 1,233.
Toyota said Tuesday that it was raising its sales forecast for 2008 and confirmed it expected to overtake US rival General Motors this year to become the world’s top automaker in terms of production.
Kansai Electric Power Co closed down 40 yen at 2,670. The shares rose in early trade on news that the company and Sumitomo Corp will join forces with a state-run Kazakh firm to process uranium for nuclear power generation.
But they turned lower after the electric power company cut its net profit forecast for the year to next March by 37 percent amid higher fuel costs and delays in the reopening of a key nuclear power plant.
SHANGHAI: Chinese share prices closed 0.62 per cent higher, with retail stocks leading the gains on expectations of strong sales in the New Year holidays, dealers said.
The benchmark Shanghai Composite Index, which covers both A and B shares, closed up 32.17 points at 5,233.35.
Turnover declined to 122.85 billion yuan (16.38 billion US dollars) from 125.07 billion yuan in the previous session.
SINGAPORE: Singapore shares closed 1.12 per cent higher as investors took comfort from a fresh injection of funds into banks hit by a crisis in the US subprime mortgage sector, dealers said.
The main Straits Times Index was 38.68 points higher at 3,473.21 from Monday’s close of 3,434.53. Markets in Singapore were closed Tuesday for Christmas Day.
Volume totalled 1.28 billion shares worth one billion Singapore dollars (694 million US).
We had positive market leads,” said Song Seng Wun, regional economist at CIMB-GK Research.
Among banks, DBS Group gained 44 cents to 21.12 Singapore dollars. Singapore Airlines eased six cents to 17.40.
KUALA LUMPUR: Malaysian share prices closed up 0.1 per cent as investors continued to buy palm oil-related plantation stocks, dealers said.
The Kuala Lumpur Composite Index (KLCI) was up 0.78 points at 1,424.02. The local bourse was closed Tuesday for Christmas.
The market is still in holiday mood and the bourse is going nowhere, said Kenny Yee, the head of research at OSK Investment Bank.
Palm oil firm IOI Corp. finished up 15 sen at 7.50 ringgit. Rivals Kuala Lumpur Kepong and Sime Darby advanced 20 sen to 16.70 ringgit and 10 sen to 11.40 ringgit respectively.
On the Malaysian derivatives exchange, the benchmark crude palm oil contract for March delivery jumped 50 ringgit to an all-time high of 3,080 ringgit per metric ton amid flooding in major palm oil-producing states.
JAKARTA: Indonesian shares closed 2.1 per cent higher, belatedly following gains on Wall Street, dealers said.Fund managers were also active as they tidied up their portfolios before the end of the year, they said.
The Jakarta composite index closed up 56.57 points at 2,714.55 on volume of 2.21 billion shares worth 3.19 trillion rupiah (339.72 million dollars).
Crude palm oil (CPO) producer Astra Agro rose 1,800 rupiah to 26,250, rival Lonsum added 300 rupiah to 10,250, Bakrie Sumatra Plantations advanced 150 to 2,200 and Sampoerna Agro gained 175 to 3,475.
CPO prices hit a fresh high on the Malaysian derivatives exchange Wednesday.
MUMBAI: Indian share prices closed up 1.74 per cent as concerns about the fallout from a global credit squeeze receded, dealers said.
The 30-share Mumbai stock exchange Sensex index rose 345.4 points to 20,199.52, its fourth straight gain.
The fresh buying surge was led by global trends. Buying could however taper off a bit by the weekend, said Bhaskar Kapadia, a partner at Pyramid Securities.—AFP
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