Asian stocks close mostly higher

Published April 29, 2008

HONG KONG, April 28: Asian stocks closed mostly higher on Monday, buoyed by optimism ahead of an expected US interest rate cut later in the week and the belief that the worst leg of the global financial crisis has passed.

Japan, the region’s biggest market, rose about 0.2 per cent, with Hong Kong, Australia, Taiwan and Singapore also ending higher.

But mainland Chinese shares fell more than two per cent. Last week they surged nearly ten per cent in a single day in the wake of a steep cut to a stock trading tax.

The Indian stock market ended down too, with investors fearing the authorities will move to slow the economy in a bid to curb high inflation.

The Fed, the US central bank, is expected to cut American rates by 25 basis points Wednesday to two per cent. The prospect of the cut raised the mood in Asia.

TOKYO: Japanese share prices ended slightly higher after the benchmark index briefly topped 14,000 points for the first time in two months on easing worries about tight credit and corporate earnings, dealers said.

The benchmark Nikkei-225 index ended 30.90 points higher at 13,894.37, off a high of 14,003.28. The broader Topix index of all first-section shares fared even better, advancing 21.84 points or 1.63 per cent to 1,361.75.

Gainers outnumbered decliners 1,154 to 478, with 87 issues unchanged.

Volume rose to 2.04 billion shares from 1.84 billion shares on Friday.

HONG KONG: Hong Kong share prices closed up 0.6 per cent, dealers said.

The Hang Seng index closed up 149.51 points at 25,666.29. Turnover was 73.74 billion Hong Kong dollars (9.4 billion US).

Among large caps, HSBC rose 0.98 per cent at 133.30 and China Mobile was up 0.59 per cent at 135.70. HKEX fell 0.37 per cent to 161.30.

SYDNEY: Australian shares closed up 0.3 per cent, dealers said. The benchmark S&P/ASX 200 added 15.4 points to end the day at 5,602.7 and the broader All Ordinaries index gained 11.6 points to 5,670.3.

Turnover was 1.3 billion shares worth 5.5 billion dollars (5.2 billion US).

It’s been a choppy session, though I do think the market started off a bit too strongly as there’s some uncertainty about what’s going to happen in the US tonight ahead of this week’s Fed policy meeting, said Michael Heffernan at Reynolds & Co.

SINGAPORE: Singapore share prices closed up 0.39 per cent, dealers said.

The blue chip Straits Times Index rose 12.43 points to 3,201.63 on volume of 1.34 billion shares worth 1.47 billion Singapore dollars (1.08 billion US).

KUALA LUMPUR: Malaysian share prices closed 0.6 per cent higher, dealers said.

The Kuala Lumpur Composite Index (KLCI) gained 7.23 points at 1,295.31.

Tee Sze Chiah, analyst with Aseambankers Research, said the current uptrend could be short-lived. “Volatility could continue to disrupt any recovery effort,” he said.

JAKARTA: Indonesian shares closed 0.6 per cent higher, dealers said.

The Jakarta composite index closed up 17.73 points at 2,254.31. Telkom rose 2.9 per cent to 8,900 rupiah and coal giant Bumi Resources gained 5.6 per cent to 6,550.

WELLINGTON: New Zealand share prices closed 0.71 per cent higher, dealers said.The NZX-50 gross index rose 25.82 points to 3,642.63.

Now that conditions have become more settled over world share markets, value starts to reassert itselfsaid James Smalley, a client adviser with Hamilton, Hindin, Greene.

MUMBAI: Indian share prices closed down 0.64 per cent, dealers said. The benchmark Mumbai 30-share Sensex index fell 110.02 points to 17,015.96.

The central bank will certainly issue a very hawkish statement and will retain its options for further monetary tightening before the next policy review in July, said Siddhartha Sanyal, economist at Edelweiss Securities.

—AFP

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