Asian stocks closed mostly higher on Friday amid reduced inflation fears after the cost of crude fell sharply and inspired Wall Street to a much stronger finish, dealers said.
They said fears surrounding a further spread of bird flu had also subsided and this had added some gloss to trade with Seoul striking a record close and Tokyo ending at a four-year high.
Taipei and Mumbai were among the strong performers, while Manila succumbed to profit-taking, which analysts said was healthy given its recent rally.
However, the prospect of higher interest rates weighed on Wellington while Kuala Lumpur and Jakarta were unable to shake their downward trend which has been fueled by persistent signs of inflation in their respective economies.
In Taipei the weighted index rose 1.45 percent to close back above the key 6,000-points level on Friday, supported by strong corporate sales figures for last month and continued foreign investor interest.
Dealers said gains on Wall Street overnight added to the positive tone, with foreign investor support then giving a strong lead to their local counterparts.
"Investors apparently took note from the strong showing on Wall Street," said Stanley Hsu, a manager with First Taisec Securities (
"Foreign investors' buying [Thursday then] convinced [local] investors to increase their exposure to the local bourse," he said.
At the same time as dealers reported foreign investor interest, they also noted the possibility that government-related funds may also have been providing support.
The TAIEX closed up 86.89 points at 6,075.26 on turnover of NT$92.73 billion (US$2.77 billion).
United Microelectronics Corp (聯電) rose NT$0.65 to NT$19.20. Taiwan Semiconductor Manufacturing Co (台積電) gained NT$1.10 to NT$57.00, with the world's two top chip-wafer foundries attracting foreign investors again.
Tokyo
Tokyo share prices pushed up to the highest levels for over four years Friday, supported by stronger-than-expected economic growth figures and a positive lead from Wall Street.
The NIKKEI-225 index rose 74.18 points or 0.53 percent to 14,155.06 for the best finish since May, 2001 but was off the day's high of 14,206.14.
"Share prices here rose on the upbeat [growth] data," said Toshihiko Matsuno, senior strategist at SMBC Friend Securities.
Japan's GDP grew 0.4 percent in the three months to September quarter-on-quarter, down from the 0.8 percent pace in the previous three-month period but above the market consensus of 0.3 percent.
"Investors were certainly relieved over the GDP figures, which provided evidence that Japan's economy is getting out of a lull," Seig Securities analyst Hideo Mizutani said.
The market also benefited from strong gains overnight on Wall Street after crude oil prices fell to their weakest close in five months.
However, some analysts have cautioned that a buying pullback by foreign investors could limit the scope for further gains in the near future.
Seoul
In Seoul share prices rose 1.73 percent to a new record high on heavy program buying, with sentiment boosted by Wall Street's overnight gains and falling oil prices.
Dealers said positive external leads helped boost the spirits of investors who were already encouraged by the market's resilience in the face of this week's options expiries.
"It would not be difficult to hit 1,300 points by the year-end, considering favorable supply and demand conditions and stable oil prices," Seoul Securities analyst Kwon Hyuk-Joon said, adding the upward trend would not be easily reversed.
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