Asian stocks post sharp gains

HONG KONG, Dec 8: Asia’s stock markets rocketed on Monday, led by Hong Kong, as dealers followed a Wall Street rally on hopes of more stimulus measures for the US economy following poor jobs data last week.

Traders were also confident that the Big Three automakers in the United States were close to securing a multi-billion-dollar handout to prevent them from bankruptcy and the industry from collapse.

Markets in Singapore, Kuala Lumpur and Jakarta were closed for public holidays.

TOKYO: Japanese shares soared 5.20 per cent.

The benchmark Nikkei-225 index closed up 411.54 points at 8,329.05. The broader Topix index of all first section issues rose 26.06 points, or 3.32 per cent, to 812.08.

But “it’s hard to say that (Japanese shares) have found a sense of direction,” Daiwa Securities SMBC analyst Yumi Nishimura said.

Shares of non-life insurers ended sharply higher because they have exposure to the US auto sector, dealers said.

Tokio Marine Holdings rose 8.9 per cent to 2,315 yen and Mitsui Sumitomo Insurance Group Holdings surged 10 per cent to 2,265 yen.

Nippon Steel rose 6.3 per cent to 286 yen, while JFE Holdings ended up 7.1 per cent at 2,415 yen.

Fast Retailing, the group behind the popular Uniqlo brand, surged 8.2 per cent to 12,810 yen.

HONG KONG: Hong Kong share prices closed 8.7 per cent higher.

The benchmark Hang Seng Index rose 1,198.78 points at 15,044.87. Turnover was stronger than recent sessions at HK$63.88 billion.

The rally was also fuelled by Hong Kong Financial Secretary John Tsang’s statement Monday that the long-delayed programme to allow mainland Chinese residents to directly invest in the city’s bourse has not been scrapped.

“The Hang Seng Index is likely to re-test its recent intraday high (of 15,317) hit on November 5 very soon, if there is no more bad news from the US and other regions.”

Dealers said Chinese banks jumped on reports the government may cut commercial banks’ business tax to offset lower net interest margins resulting from the several central bank rate cuts.

Bank of Communications rose 11.7 per cent to $5.44, China Construction Bank rose 10.0 per cent to $4.85, and ICBC was up 7.4 per cent at $4.37.

Hong Kong property developers rose on solid home sales over the weekend, Daiwa Institute of Research said.

Sun Hung Kai rose 8.8 per cent to $59.05 and Henderson Land jumped 16.2 per cent to 28.00.

Sinopec rose 9.6 per cent to $5.15 and PetroChina was up 7.2 per cent at 6.70.

SYDNEY: Australia shares closed up 4.1 per cent.

The benchmark S&P/ASX200 was up 141.7 points to 3,631.6, while the broader All Ordinaries rose 126.6 points, or 3.7 per cent, at 3,553.8.

National turnover was 1.18 billion shares worth A$3.7 billion.

Ben Potter, research analyst with IG Markets, said the government’s $10.4 billion economic stimulus package, most of which will find its way to millions of pensioners and low income families, would soon boost consumer pockets.

Commonwealth Bank rose 6.2 per cent to $32.80 and National Australia Bank added 5.8 per cent to $20.96.

The energy sector also gained, on a higher price for oil and speculation the China National Petroleum Corporation is considering a joint bid for Australian oil and gas producer Santos.

Santos closed up 9.1 per cent at $13.25.

BHP Billiton gained 4.1 per cent to $27.22 and Rio Tinto rose 0.25 per cent to $32.08.

SHANGHAI: Chinese shares closed up 3.57 per cent.

Beijing’s hierarchy gathered in the capital Monday for the three-day meeting that will set the tone for the major economic policies next year.

“Beijing is likely to issue more measures to support exports and ensure at least eight per cent GDP growth in 2009 during the annual economic planning conference,” Guosen Securities’ analyst Wang Junqing said.

Oil refiners rose after Beijing said Friday it would reform its oil pricing system to give oil companies a “reasonable” profit margin.

The benchmark Shanghai Composite Index, which covers A and B shares, closed up 72.12 points at 2,090.77 on turnover of 116.5 billion yuan.

PetroChina, the biggest index component, rose 2.4 per cent to 11.85 yuan, while China Petroleum and Chemical was up 2.2 per cent at 8.87 yuan.

SAIC Motor rose 3.6 per cent to 6.65 yuan.

TAIPEI: Taiwan share prices closed up 4.57 per cent.

The weighted index rose 193.26 points at 4,418.33 on turnover of T$64.20 billion.

The market opened 1.27 per cent higher as the financial sector staged a technical rebound and the momentum accelerated with interest spreading across the board and the bellwether electronic sector in focus, dealers said.

Regional markets hailed the Wall Street performance, prompting investors to leave behind pessimism over a global economic meltdown and start hunting bargains, Mega Securities analyst Alex Huang said.

Fubon Financial gained 6.96 per cent to $20.75, Cathay Financial rose 6.86 per cent to 34.25 and Chinatrust Financial added 6.76 per cent to 11.85.

Taiwan Semiconductor Manufacturing Co rose 6.99 per cent to 39.80 and United Microelectronics Corp gained 5.88 per cent to 7.20.

SEOUL: South Korean shares closed 7.5 per cent higher.

The KOSPI index ended up 76.92 points at 1,105.05, the highest close since November 12. Volume was 533.9 million shares worth 6.44 trillion won.

Foreigners and domestic institutions picked up 119.3 billion won and 695.1 billion won net worth of shares, respectively, while local retail investors sold 773.6 billion net worth of stocks.

China plays, such as shipbuilders, steelmakers and shippers, were strong on hopes that Beijing will release additional economic stimulus measures during the three-day Central Economic Work Conference which started Monday.

Samsung Heavy Industries jumped 14.3 per cent to 23,250 won, POSCO climbed 6.5 per cent to 367,000 won and Hyundai Steel jumped 12.8 per cent to 35,750.

Banks and builders were also higher on expectations the government will unveil additional measures to help the sectors. KB Financial Group soared 13.7 per cent to 73,000 won and GS Engineering and Construction jumped the daily limit to 51,100.

Samsung Electronics jumped 8.7 per cent to 464,000 won and Hyundai Motor climbed 7.7 per cent to 42,550.

MANILA: Philippine share prices closed 1.04 per cent higher.

The composite index gained 19.72 points to 1,908.68 points.

Philippine Long Distance Telephone Co. was unchanged at 2,355 pesos but Globe Telecom was up 2.7 per cent at 750 pesos.

Ayala Corp. rose 5.68 per cent to 188 pesos.

San Miguel Corp’s A and B shares were unchanged at 41 pesos and 41.50 pesos respectively.

WELLINGTON: New Zealand shares closed 0.26 per cent lower.

The benchmark NZX-50 index fell 6.91 points to 2,699.81.

Market leader Telecom was unchanged at $2.32, giving up earlier gains and second-ranked Contact Energy fell 14 cents to $6.71.

Auckland Airport dropped three cents to $1.66.

Fisher & Paykel Appliances was up four cents at $1.39 and Port of Tauranga added 10 cents to 6.10.

MUMBAI: Indian shares rose 2.2 per cent.