HONG KONG, July 17: Asian shares made sharp gains on Thursday after a steep fall in oil prices and a Wall Street rally sparked bargain hunting, but doubts remained about long-term prospects due to US economic woe.

The Taiwanese bourse led the gainers among major markets, rising 3.9 per cent, and India jumped more than four per cent in the wake of the oil price tumble.

Japan, Asia’s biggest market, was one per cent up, Hong Kong rallied over two per cent and Australia, South Korea and Singapore also ended higher. US shares had rallied 2.5 per cent on Wednesday.

TOKYO: Japanese share prices closed 1.00 per cent higher, dealers said.

The Tokyo Stock Exchange’s benchmark Nikkei-225 index gained 127.15 points to close at 12,887.95. The broader Topix index of all first-section shares ended up 14.37 points or 1.15 per cent at 1,263.65.

The market welcomed a steep drop overnight in oil prices due to a rise US crude reserves, even though the price inched back up on Thursday in Asian trade.

But dealers in Tokyo remained cautious ahead of second-quarter earnings reports from major US banks.

HONG KONG: Hong Kong shares closed 2.41 per cent higher, dealers said.

The Hang Seng Index closed up 511.22 points at 21,734.72. Turnover was 63.46 billion Hong Kong dollars (8.14 billion US).

Banking giant HSBC buoyed the market, rising 3.72 per cent after three dismal sessions, on increased optimism among US financial stocks. In the local bourse, Sinopec gained 4.5 per cent to $7.48.

China Shenhua gained 4.4 per cent to 31.20 dollars, rebounding after a 4.8 per cent fall over the past three sessions.

SYDNEY: Australian shares closed up 0.6 per cent, dealers said. The benchmark S&P/ASX 200 index closed up 30.4 points at 4,901, while the broader All Ordinaries index gained 29.9 points or 0.6 per cent to close at 4,977.4.

National Australia Bank gained $1.04 to $27.35. Rio Tinto lost 3.44 dollars to 118.00 dollars, while its rival and would-be buyer BHP Billiton fell 1.74 dollars to 37.55 dollars. Telstra lost two cents to 4.25 dollars.

SINGAPORE: Singapore share prices closed 1.02 per cent higher, dealers said.

The blue-chip Straits Times Index finished 28.78 points higher at 2,864.10 on volume of 1.03 billion shares worth 1.40 billion Singapore dollars (1.04 billion US).

KUALA LUMPUR: Malaysian share prices ended 0.2 per cent higher, dealers said. The Kuala Lumpur Composite Index gained 1.75 points to 1,121.17.

The market was under pressure for almost the entire day with foreign-favoured stocks leading losses as a result of political uncertainty, a dealer told Dow Jones Newswires.

JAKARTA: Indonesian shares slumped 2.3 per cent, dealers said. The Jakarta Composite fell 51.12 points to 2,167.71.

Massive selling in commodity stocks, which have so far defended the main index, erased earlier gains made by banks after an overnight rally on Wall Street,” Katarina Setiawan from Kim Eng Research told Dow Jones Newswires.

WELLINGTON: New Zealand share prices closed 1.04 per cent higher, dealers said.

The benchmark NZX-50 index rose 32.0 points to 3,091.4.

“Finally, a reasonably positive day,” said Grant Williamson of Hamilton Hindin Greene.

MUMBAI: Indian markets rose 4.26 per cent, dealers said.

The benchmark Mumbai 30-share Sensex index rose 536.05 points to 13,111.85.—AFP