HONG KONG, Dec 5: Asian stocks were up on Wednesday, helped by late rallies after a report Britain’s Northern Rock bank may be nationalised, raising hopes of bailouts for other institutions hit by subprime troubles.
Expectations of a US interest rate cut also helped give a boost to markets, most of which were already closed when China announced it would tighten monetary policy next year, the first such shift in a decade.
Only Australia and New Zealand bucked the trend as markets across the region recorded gains, even though some dealers cautioned there was still uncertainty about a US decision on interest rates next week.
Japan was up 0.83 per cent, Hong Kong gained 1.61 per cent and Shanghai jumped 2.58 per cent.
TOKYO: Japan’s benchmark Nikkei-225 Index was up 0.83 per cent after two days of losses, with shares benefitting as a softer yen lifted exporters and investors appeared optimistic about another US rate cut.
The Nikkei gained 128.69 points to close at 15,608.88. The broader Topix index of all first-section shares gained 11.13 points or 0.73 per cent to finish at 1,526.63.
As the dollar edged up against the yen, analysts said, the Northern Rock report was also helping to ease the lingering concerns about the subprime mortgage crisis.
HONG KONG: The Hang Seng Index gained 1.61 per cent led by China stocks, as a strong performance on the Shanghai market lifted sentiment on H-shares, the shares in Chinese companies traded in Hong Kong.
The benchmark index closed up 465.86 points at 29,345.45.
Airline stocks outperformed on speculation that a bidding war for China Eastern may be looming after Air China’s parent raised further its stake in the mainland carrier.
SYDNEY: Australian stocks were down 0.4 per cent, tracking weakness on Wall Street amid ongoing concerns about the US economy.
The benchmark S&P/ASX 200 closed down 22.7 points at 6,508.1, while the broader All Ordinaries closed 20.4 points lower at 6,568.4.
Traditionally December is quite a strong period but it’s started very weak, with the stuff coming out of the US making everyone a little bit negative, said Lucinda Chan of Macquarie Equities.
The Reserve Bank of Australia’s decision to leave its target cash rate unchanged at 6.75 per cent was in line with expectations and failed to jumpstart the market.
SINGAPORE: Singapore closed 0.91 per cent higher, after losing ground early in the session due to concerns about the US economy and whether the Fed will go ahead with an interest rate cut.
The Straits Times Index was up 32.18 points at 3,560.05.
In the meantime, we will just only have situational plays, he said.
KUALA LUMPUR: Malaysia closed up 0.8 per cent, in line with other markets thanks to optimism after the report about Northern Rock.
The Kuala Lumpur Composite Index (KLCI) finished up at 11.96 points at a new closing high of 1,427.77, off an all-time intraday high of 1,431.69.
JAKARTA: Indonesian stocks closed 0.6 per cent higher on hopes the central bank is poised to cut its benchmark rate, with extra momentum spurred by the late regional rally.
The Jakarta composite index rose 15.12 points to close at a record high of 2,768.06. The previous record close was 2,752.94 on Tuesday.
Indosat also found favour after the government ordered PT Telekomunikasi Indonesia, carrier of domestic long-distance calls, to open up the market to Indosat subscribers by April 2008.
WELLINGTON: The benchmark NZX-50 index was down 0.48 per cent, losing 19.30 points to close at 4,034.55.
The market basically is still taking its lead from offshore markets and with concerns about America slowing,” Richard Burton of Forsyth Barr said.
MUMBAI: Indian share prices closed 1.07 per cent higher as buying resumed in index heavyweights and select mid- and small-cap stocks.
The benchmark 30-share Sensex index rose 208.57 points to 19,738.07.—AFP
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