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Published 12 Jun, 2008 12:00am

Asian stocks close mixed

HONG KONG, June 11: Asian stocks closed mixed on Wednesday as Japan rallied on surprisingly strong economic growth data, but worries about inflation and a share price slump at the start of the week lingered.

Japan's stock market rose more than one per cent after official data showed the country's economy had powered ahead at a 4.0 per cent annualised pace in the first quarter of 2008.

However, analysts warned tougher times lay ahead due to high oil prices and slowing US growth. Investors elsewhere in Asia are worried that soaring oil prices will stoke inflation, leading eventually to slower economic growth.

A Chinese central bank move to tighten credit conditions to cap inflation led to the big plunge, but sentiment took another hit Wednesday as data showed wholesale price inflation hit 8.2 per cent in May -- the highest level in years.

But Indian share prices rose nearly two per cent amid news of Japanese pharmaceutical group Daiichi Sankyo's decision to buy a majority stake in India's top drug company, Ranbaxy Laboratories, for up to 4.6 billion dollars.

TOKYO: Japanese share prices closed up 1.16 per cent, dealers said.The benchmark Nikkei-225 index rose 162.31 points to end at 14,183.48. The broader Topix index of all first-section shares added 6.83 points or 0.49 per cent to 1,390.03.

Japan's economy grew at a brisk 4.0 per cent annualised pace in the first quarter of 2008, better than an initial estimate of 3.3 per cent, data showed.

Toyota Motor rose 2.4 per cent to 5,550 yen and Honda Motor climbed 2.7 per cent to 3,800 yen.

HONG KONG: Hong Kong share prices closed down 0.21 per cent, dealers said.

The Hang Seng Index closed down 47.92 points at 23,327.6. Turnover was light at 62.91 billion Hong Kong dollars (8.07 billion US).

Chinese stocks in Shanghai closed 1.57 per cent lower.

SYDNEY: Australian stocks closed up 0.6 per cent, dealers said.

The benchmark S&P/ASX 200 index gained 29.8 points to end the day at 5,467.3 while the broader All Ordinaries climbed 17.6 points to 5,561.9.

Turnover was 1.98 billion shares worth 6.7 billion dollars (6.3 billion US).

Dealers said financial stocks could continue to gain as the US dollar strengthens.

SINGAPORE: Singapore share prices closed 0.45 per cent higher, dealers said.

The blue chip Straits Times Index rose 13.72 points to 3,046.77 on volume of 1.11 billion shares worth 1.44 billion Singapore dollars (1.05 billion US).

DBS Group gained 32 cents to 19.48 Singapore dollars. City Developments rose 14 cents to 10.64. Singapore Airlines advanced four cents to 15.12.

KUALA LUMPUR: Malaysian stocks ended little changed, dealers said.

The Kuala Lumpur Composite Index fell 1.68 points to 1229.28.

Tenaga gained 1.2 per cent at 8.50 ringgit, while gaming giant Genting was down 3.5 per cent at 5.45 ringgit.

JAKARTA: Indonesian shares closed little changed, dealers said.

The Jakarta Composite Index ended up 4.03 points at 2,374.78.

Investors swiftly cashed in their gains on any rebound, a trader said.

WELLINGTON: New Zealand share prices closed 0.53 per cent lower, dealers said.

The NZX-50 gross index fell 18.47 points to 3,487.43.

The local market was still suffering aftershocks from the big falls in US stocks on Friday, said James Smalley, a client adviser with Hamilton, Hindin, Greene.

Telecom fell six cents to 3.80 dollars, Contact Energy gained seven cents to 8.66, and Fletcher Building dropped 21 cents to 7.14, after touching a 30-month low of 7.10 during the day.

MUMBAI: Indian shares closed up 1.99 per cent, dealers said.

The benchmark Mumbai 30-share Sensex index rose 296.07 points to 15,185.32.

This appears to be a brief bounce after a sharp slide. High crude, rising inflation and re-rating of corporate earnings will keep the markets subdued in days ahead, said a dealer at brokerage Prabhudas Lilladher.

—AFP

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