Asian stocks roared ahead on Friday after fears of inflation-induced interest-rate hikes abated in the US in response to the release of softer than expected consumer spending figures.
This resulted in a galloping performance by Wall Street and markets in the Asia-Pacific region followed suit, with Tokyo -- already buoyed by its own economic outlook -- leading the surge to close at a fresh five-year high.
Jakarta was among the biggest winners on the day, rising more than 2 percent. Taipei, Manila, Sydney and Hong Kong also registered solid gains and hopes have again been raised for a traditional end-of-year rally.
However, Kuala Lumpur continued to ease after the central bank raised interest rates earlier this week and Bangkok was flat after profit takers moved in to cash-up ahead of a long weekend.
The TAIEX closed 0.80 percent higher, with sentiment bolstered by Wall Street's latest rally and sharp gains in Tokyo which more than offset any concerns about yesterday's local elections.
Dealers said the elections had raised some uncertainty, with the opposition widely expected to do well against the government.
"The Wall Street lead apparently lent support to the local bourse in late trade ahead of tomorrow's local elections," said Calvin Chen, a deputy manager with Yuanta Core Pacific Capital Management Co Ltd (
"Some investors took a cautious approach as they were uncertain about the impact of the election results on the stock market," he said.
Selected conglomerate stocks might have benefited from expectations of group support for year-end window dressing, Chen said.
Against such a backdrop, petrochemical stocks were hit by soft product prices, at a time when they usually enjoy a price uptrend.
"Selected petrochemical products saw their prices weakening, given worries about demand," he added.
The TAIEX closed 49.13 points higher at 6,228.95 on turnover of NT$112.31 billion (US$3.34 billion).
United Microelectronics Corp (聯電) gained NT$0.40 to NT$19.20, Taiwan Semiconductor Manufacturing Co (台積電) rose NT$1.30 to NT$60.60 and AU Optronics Corp (友達光電) rose NT$0.60 to NT$48.20, following strong performances by their respective American Depositary Shares.
Tokyo
Tokyo share prices jumped 1.92 percent to above 15,400 points for the first time in over five years as investors remained enthusiastic about prospects for the economy.
Dealers said a weaker yen, which helps exporters, and a solid performance on Wall Street, where worries about US inflation eased, had added further cheer for investors here.
The NIKKEI-225 index rose 291.10 points to 15,421.60, the highest closing level since Oct. 16, 2000, when it hit 15,512.
"The overall market mood was lifted as both export-oriented electronics shares and domestic demand-oriented banks were bought actively," said Hideo Mizutani, a chief strategist at Sieg Securities. "This means that investors are expecting a further rise."
Mizutani cited the upbeat mood surrounding the market amid a strong dollar which promises to boost earnings of Japanese exporters, as well as the continued growth in the US economy, a major trading partner.
Seoul share prices closed 0.32 percent higher at a fresh record high as foreign investors focused on Samsung Electronics and Hynix, taking their leads from Intel's overnight surge.
Dealers said the mood was buoyed by a galloping performance on Wall Street where fears of further interest rate hikes due to inflation were abating, at least for the short term.
RSS