HONG KONG, July 9: Asian stocks closed mostly up on Wednesday after a drop in oil prices boosted sentiment, but the G8 industrial powers issued fresh warnings about threats to the global economy.

Indian and Chinese shares led the rise, jumping more than 4.5 per cent and 3.7 per cent respectively, but are still far below highs hit some months ago following a steep plunge this year.

Oil was trading around 138 dollars per barrel on Wednesday, sharply lower than recent all-time highs around 147 dollars. That allayed some concerns about surging global inflation, which threatens slower economic growth.

Elsewhere in Asia on Wednesday, Hong Kong shares rallied nearly three per cent, Australia was up 1.6 per cent and Singapore ended just over one per cent higher.

The Japanese stock market edged up 0.15 per cent. The country’s core machinery orders were unexpectedly strong in May, but experts warned that had failed to dispel gloom about prospects for Asia’s largest economy.

Asian stocks were helped by a Wall Street rally Tuesday and comments by Ben Bernanke, the head of the US central bank, indicating continued steps to deal with a credit crunch after a financial crisis.

But investor sentiment could be hit over the rest of the week after Iran on Wednesday test-fired a missile it said was capable of reaching Israel.

The test angered the US as fears grow that a standoff over the contested Iranian nuclear drive could lead to war.

TOKYO: Japanese shares closed 0.15 per cent higher as Wall Street rallied on lower oil prices, but dealers said reports of an Iranian missile test could weigh on market sentiment.

The Tokyo Stock Exchange’s benchmark Nikkei-225 index firmed 19.03 points to end at 13,052.13. The broader Topix index of all first-section shares gained 2.02 points or 0.16 per cent to 1,285.53.

Wednesday’s trading volume was estimated at 1.966 billion shares, below the 25-day moving average of 2.026 billion shares.

Darren Heathcote, head of precious metals trading at Investec Bank in Sydney.

Mitsubishi UFJ Financial rose 2.2 per cent to 955 yen and Sumitomo Mitsui Financial gained 3.2 per cent to 796,000 yen.

HONG KONG: Hong Kong share prices closed up 2.8 per cent, dealers said.

The benchmark Hang Seng Index finished 585.00 points higher, at 21,805.81.

Turnover was 74.55 billion Hong Kong dollars (9.56 billion US).

Cathay Pacific was up 4.91 per cent and shipping firm Cosco Pacific jumped 5.26 per cent, following a drop in crude oil prices overnight. China Mobile rose 1.5 per cent to $104.20.

SYDNEY: Australian share prices closed 1.6 per cent higher, dealers said.

The benchmark S&P/ASX 200 index closed up 79 points at 5,011.9, while the broader All Ordinaries gained 67 points to close at 5,089.4.

Market volume was 1.57 billion shares worth 6.1 billion dollars (5.8 billion US).

Austock senior client adviser Michael Heffernan said the market was “spritely” following a positive lead from Wall Street.

The banks are performing exceedingly well, and stocks that have been belted down are staging a bit of a resurgence, he said.

SINGAPORE: Singapore share prices closed 1.07 per cent higher, dealers said.

The blue-chip Straits Times Index was 31.00 points firmer at 2,917.62.

Volume totalled 1.14 billion shares worth 1.31 billion Singapore dollars (963 million US).

CapitaLand was four cents firmer at 5.82 Singapore dollars. DBS bank gained 36 cents to 18.84. Singapore Airlines put on 52 cents to 14.88.

KUALA LUMPUR: Malaysian share prices closed up 1.7 per cent, dealers said.

The Kuala Lumpur Composite Index gained 18.56 points to 1,139.81. Although volume is still low, today’s market strength is encouraging.

JAKARTA: Indonesian shares closed 0.3 per cent higher, dealers said.

The Jakarta Composite Index gained 7.06 points to 2,286.03.

The market managed to finish in positive territory thanks to strong buying interest in telecom and banking stocks, said Teuku Hendry Andrean, analyst at Finan Corpindo Nusa.

Index heavyweight Telkom rose 1.4 per cent to 7,400 rupiah, rival Indosat added 3.1 per cent to 6,600 rupiah.

WELLINGTON: New Zealand shares closed up 0.53 per cent, dealers said.

The NZX-50 gross index rose 16.88 points to close at 3,177.46.

We’ve certainly seen some bargain-hunting,” Forsyth Barr dealer David Price said. How long it holds for, I’m not sure.Telecom rose four cents to 3.51 dollars and Fletcher Building gained 20 cents to 6.73.

MUMBAI: Indian shares surged to close 4.6 per cent higher, dealers said.

The benchmark Mumbai 30-share Sensex index rose 614.61 points to 13,964.26.

Equity markets have recovered after the leftist parties’ decision to withdraw support, said Shuchita Mehta, an economist with Standard Chartered bank.

From the perspective of long-term commercial interests, the government’s decision to go ahead with the nuclear deal is positive.—AFP