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.
PHOTO: AP
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.
Kwon said that IT and financial stocks are "two pillars" supporting the recent rally and they're expected to rise further on strong seasonal demand.
Although there will be attempts to regulate the pace of the rally, the recent upward trend would not be easily reversed as the market went through enough correction last month, Kwon added.
The KOSPI index closed up 21.69 points at a new record of 1,256.12.
Hong Kong
Hong Kong share prices closed 0.73 percent higher following Wall Street's gains overnight on the back of easing oil prices.
Dealers said additional support for the market came from gains in the property sector, as most investors have now discounted a possible new round of interest rate increases by the US Federal Reserve next month amid expectations of a shortened rate rise cycle.
The Hang Seng Index closed up 107.27 points at 14,740.60.
Shanghai
In Shanghai share prices closed 0.17 percent higher on a very modest technical rebound after sharp losses Thursday, with automakers and airlines once again attracting speculative interest.
Dealers said the upturn was insignificant, with sentiment continuing cautious on outbreaks of bird flu, especially in northeastern Liaoning province, where senior officials have voiced concerns at the seriousness of the situation.
The Shanghai A-share Index added 1.95 points to 1,145.87, while the Shenzhen A-share Index was up 0.96 points or 0.35 percent at 275.76.
The benchmark Shanghai Composite Index, which covers both A- and B-shares, rose 1.89 points or 0.17 percent at 1,090.20.
Sydney
Sydney share prices closed up 0.67 percent as investors took encouragement from an overnight rise on Wall Street along with stronger local resource and banking stocks.
Dealers said Rio Tinto and BHP Billiton could see further strong gains, following comments from Brazil's CVRD, the world's largest iron ore company, that strong demand for iron ore was likely to drive up prices again next year.
CVRD's comments came ahead of annual price negotiations with key customers in Japan and China.
The SP/ASX 200 index closed up 30.6 points at 4,574.3.
In Singapore share prices closed 0.34 percent higher, supported by gains in heavyweight stock Singapore Telecommunications (SingTel).
Overnight gains on NASDAQ were a boost to local technology stocks as investors looked to exit the property sector which had been overbought after registering sharp gains in recent weeks, dealers said.
The Straits Times Index gained 7.78 points to 2,266.03.
Malaysian share prices closed 0.30 percent lower on extended selling of selected blue chips, while the key index dipped below the psychologically important 900-points level. The Composite Index lost 2.74 points to 898.35.
In Bangkok share prices closed 0.57 percent lower as investors traded with caution after a court delayed a decision on the listing of the country's largest energy utility, EGAT.
Dealers said that investors were awaiting the Administrative Court's decision next Tuesday on whether to allow the Electricity Generating Authority of Thailand (EGAT) to be listed on the stock market.
If listed, it would mark Thailand's biggest stock listing. An initial public offer (IPO) of EGAT was originally scheduled for next Wednesday.
The Composite Index lost 3.99 points to close at 690.45.
In Jakarta share prices closed 1.41 percent lower for a third consecutive loss amid persistent concerns that high interest rates may lead to an economic slowdown next year. The Composite Index lost 14.71 points to close at 1,028.984.
In Manila share prices closed 0.31 percent lower as investors took profits on the recent sustained gains ahead of the weekend. The Composite Index fell 6.46 points to 2,092.68.
In Wellington share prices closed 0.37 percent lower on Friday on continuing concerns about the effects on business of expected rises in interest rates.
The NZSX-50 gross index fell 12.12 points to 3,269.44.
In Mumbai share prices surged 1.95 percent higher on renewed buying by funds after reports the government was considering a fresh set of economic reforms to boost foreign investment.
The SENSEX index climbed 162.11 points to close at 8,471.04.
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