Asian stocks close up, buoyed by US figures

HONG KONG, Aug 29: Asian shares closed up on Friday on unexpectedly strong US economic growth figures, with Japan rallying over two percent ahead of the announcement of an economic stimulus package.

The Japanese bourse rose 2.39 per cent following a Wall Street rally Thursday triggered by data showing stronger than expected second quarter US economic growth of 3.3 per cent.

Later Friday the Japanese government announced an economic stimulus package worth more than $100 billion to tackle the fastest inflation in a decade and the looming threat of a recession.

TOKYO: Japanese share prices surged 2.39 per cent, ending above the key 13,000-point level on unexpectedly strong US economic growth and anticipation of a domestic stimulus plan.

The Tokyo Stock Exchange’s benchmark Nikkei-225 index rose 304.62 points to 13,072.87, the highest close since August 18. The broader Topix index of all first-section shares gained 35.18 points or 2.88 per cent to 1,254.71.

The market ended the week waiting for an announcement of a stimulus package aimed at propping up the economy.

Nippon Steel jumped 5.4 per cent to 523 yen and JFE Holdings ended up 4.7 per cent at 4,660 yen.

HONG KONG: Hong Kong share prices closed 1.4 per cent up, dealers said.

The benchmark Hang Seng Index rose 289.6 points to 21,261.89. Turnover was 63.44 billion Hong Kong dollars (8.13 billion US).

The jump was led by property developers and banks. Cheung Kong gained 2.84 per cent, Sino Land was up 5.98 per cent, and Sun Hung Kai surged 2.28 per cent.

SYDNEY: Australian shares closed up 1.4 per cent, dealers said.

The benchmark S&P/ASX 200 index closed up 69.1 points at 5,135.6, while the broader All Ordinaries Index added 72.2 points to end the day at 5,215.5.

Trading volumes were thin, with 1.44 billion shares worth 7.1 billion dollars (6.1 billion US) changing hands.

The battered financial sector found some traction today, climbing 2.0 percent as traders covered their short positions, pushing Macquarie Bank up over four per cent, CMC Markets senior dealer Dominic Vaughan said.

SINGAPORE: Singapore share prices closed 1.82 per cent higher, dealers said.

The blue-chip Straits Times Index closed 48.95 points higher at 2,739.95 on volume of 990 million shares worth 1.46 billion Singapore dollars (1.03 billion US).

DBS bank was a key gainer, up 54 cents to 18.08 Singapore dollars, while other banks also rose. UOB climbed 34 cents to 19.00 and OCBC was three cents higher at 8.09.

KUALA LUMPUR: Malaysian share prices ended 2.8 per cent higher, dealers said.

The Kuala Lumpur Composite Index gained 30.04 points to close at 1,100.50.

This is likely to be supportive of domestic consumption growth, he told Dow Jones Newswires.

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

The Jakarta Composite Index rose 21.09 points to 2,165.94 on low volume.

Late buying in most blue-chips by foreign funds drove the main index higher, a trader told Dow Jones Newswires.

WELLINGTON: New Zealand share prices closed 0.86 per cent, dealers said.

The benchmark NZX-50 index rose 28.45 points to 3,353.24.

The main reason for the rise was Wall Street and the main beneficiary was Fletcher Building, said Grant Williamson of Hamilton Hindin Greene.

Investors are regaining some confidence in this market as more and more companies produce better than expected financial results, he added.

The doom and gloom is no longer there. Fletcher Building rose 18 cents to $7.48, and Telecom rose one cent to 3.27.

MUMBAI: Indian shares closed up 3.67 per cent, dealers said.