Sun, Jun 05, 2005 - Page 10 News List

Continued US gains support Asian markets

PERKING UP Taiwanese share prices are expected to rise further in the week ahead, while continuing interest from investors will boost electronic stocks, analysts said

AFP , HONG KONG AND TAIPEI

Asian stocks closed higher on Friday following mild gains on Wall Street, but analysts said trade was cautious with investors maintaining a watchful eye on US jobs data for next week's lead.

Lower oil prices aided the rise as Asian investors focused on the US, where they expect to see a posting of 187,000 new US jobs for last month, which held the promise of fuelling further regional share market gains.

Gains in the Asia-Pacific region were virtually across the board with local factors adding to the upward momentum.

Malaysia perked up over bank reassurances on lending, the Philippines struck a two-month high on brighter economic prospects and Australia was helped by BHP Billiton nearing completion of its bid for WMC Resources.

Only China bucked the trend to close lower with dealers saying that institutions had joined individual investors and lost confidence in the market amid the ongoing overhang of government-held non-tradable shares.

Taiwanese share prices are expected to rise in the week ahead amid growing investor confidence and ample liquidity, dealers said.

Electronic stocks, which have led the market in the past week, are expected to continue their upward trend due to continuing investor interests.

"The share prices reached 6,100 points and there is a good chance of going up to 6,200 points next week if there is no significance decline in Wall Street," said Daniel Hsin (辛日祺), senior vice president at Capital Securities Corp (群益證券).

Share prices closed 1.13 percent higher in active trade on Friday as investors took their lead from the continued gains on Wall Street overnight. The TAIEX closed up 68.47 points to 6,107.95 on turnover of NT$102.53 billion (US$3.27 billion).

For the week to June 3, the TAIEX gained 116.40 points or 1.94 percent to 6,107.95, following a 0.62 percent gain the previous week. Average daily turnover stood at NT$81.08 billion (US$2.55 billion), up from NT$55.92 billion a week earlier.

Tokyo share prices closed mixed as investors stayed on the sidelines ahead of May jobs data in the US due out later in the day.

"Japanese investors are becoming increasingly worried about the possibility of a downturn on Wall Street in the wake of a weak US jobs report," Shinko Securities market analyst Yutaka Miura said.

The NIKKEI-225 index gained 20.00 points or 0.18 percent to 11,300.05.

Shares closed 0.51 percent higher in Seoul on lower oil prices and strong service sector output figures, with the rise checked by concerns over the economy.

Dealers said the rise may have been capped ahead of a national holiday tomorrow.

The KOSPI index closed up 5.21 points at 976.09.

Hong Kong share prices closed flat in cautious trade ahead of the release of US jobs data for May.

The Hang Seng Index closed up 3.87 points or 0.03 percent at 13,818.45. Property stocks closed mixed, with the sectoral sub-index up 2.15 points or 0.01 percent at 16,794.82.

Share prices closed 0.24 percent lower in Shanghai, extending losses with petrochemical and textile companies weighed down by profit concerns

The Shanghai A-share Index fell 2.58 points to 1,063.96, while the Shenzhen A-share Index fell 1.39 points o 258.29.

The Shanghai Composite Index, which covers both A and B-shares, closed at a fresh eight-year low, down 2.43 points or 0.24 percent at 1,013.64, hitting the lowest level of 1,000.52.

This story has been viewed 2487 times.
TOP top