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Markets in Asia close mixed as confidence rises

Asian stocks closed mixed on Friday, consolidating another strong week marked by increasing investor confidence that the economic prospects are sound despite the threat of soaring oil prices, dealers said.

They said there was little fresh news to provide a lead on Friday although the latest US jobs claims showing a sharp fall were taken positively, promising a good US employment report and further evidence that Hurricanes Rita and Katrina may not have been so damaging as first thought.

Given that several markets are in record territory and most of the rest at multi-year highs there was some cautiousness about stocks being overbought but this remains a minority view, with many happy to push prices further.

Taiwanese share prices closed 1.81 percent higher, supported by gains on Wall Street and institutional investor portfolio window-dressing on the last day of the September quarter, dealers said.

They said speculation about a possible government stimulus package and a sharp gain in the New Taiwan dollar helped sentiment, with local investors no longer so nervous that their foreign counterparts were selling down the market.

TAIEX up

The TAIEX rose 108.62 points to the day's high of 6,118.61 on turnover of NT$95.62 billion (US$2.88 billion). Risers led decliners 703 to 238, with 136 stocks unchanged.

A firmer local currency and expectations of a stimulus package from the government underpinned the gains, said Jack Tam, an assistant vice president with Yuanta Core Pacific Capital Management Co Ltd (元大京華投顧).

"The currency and stockmarket have negatively affected each other previously but they are now set for a positive cycle over the next few days," he said.

Early gains attracted further window-dressing interest, pushing the benchmark index higher, while hopes are high for robust earnings from selected companies for the third quarter, he added.

Japanese share prices closed 0.32 percent on Friday as investors took a breather after recent gains and ahead of a key survey of business confidence due next week, dealers said.

The Tokyo Stock Exchange's benchmark NIKKEI-225 index fell 42.94 points to 13,574.30. The broader TOPIX index of all first-section shares lost 15.85 points or 1.11 percent to 1,412.28.

Over the week, the NIKKEI rose 3.15 percent and the TOPIX 4.1 percent.

South Korean share prices closed 0.83 percent lower in a correction after a four-day record-breaking run, with investors belatedly responding to poor economic data, dealers said.

Wall Street's overnight gains and South Korea's solid service sector growth for August supported a firm start but foreign investors then opted to sell blue chips, unsettled by higher oil prices and ahead of a three-day break.

Dealers said disappointing industrial output and current account figures for August, which had been overlooked Thursday, may have made a greater impression on Friday, providing a ready excuse to take profits at least.

The KOSPI index lost 10.21 points at 1,221.01, off a high of 1,232.98 and a low of 1,217.70.

Hong Kong flat

Hong Kong share prices closed flat as the market consolidated Thursday's sharp gains, dealers said. The benchmark Hang Seng Index closed down 2.73 points at 15,428.52, off a low of 15,394.68 and a high of 15,470.51. The Hang Seng China Enterprises Index, a gauge of Hong Kong-listed China stocks, was up 9.07 points or 0.17 percent at 5,227.28.

Chinese share prices closed little changed in cautious trade as the market wound down after sharp gains Thursday and ahead of the long National Day holidays next week, dealers said.

The Shanghai A-share Index added 0.15 points to 1,214.01, while the Shenzhen A-share Index was down 0.10 points at 291.46. The Shanghai Composite Index, which covers both A- and B-shares listed on the Shanghai Stock Exchange, rose 0.13 points at 1,155.61.

Australian share prices closed 0.65 percent lower as blue-chip banking and mining stocks succumbed to profit-taking after a week featuring three record finishes, dealers said. The S and P/ASX 200 lost 30.5 points at 4,641.2 while the broader All Ordinaries index dropped 24.8 points to 4,592.6.

Singapore share prices closed 0.25 percent higher after three straight days of losses as investors searched for bargains, dealers said. The Straits Times Index rose 5.85 points to 2,305.14.

Malaysian share prices closed 0.36 percent higher on last-minute support on Friday as investors reacted positively to the federal budget, dealers said. The Kuala Lumpur Composite Index was up 3.31 points to 927.54.

Indian share prices ending another record-breaking week with a very modest loss of 0.18 percent as investors consolidated in confident mood, dealers said. The 30-share SENSEX index lost 15.69 points to 8,634.48.
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