Sun, Dec 11, 2005 page10

• India, Japan grab limelight in Asia

  PATCHY WEEK Investors kept to the sidelines as they awaited the US' decision on interest rates, which could determine whether the region will see a year-end rally

  • AFP
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  Asian stocks closed mostly higher with modest gains on Friday at the end of a patchy week, with India and Japan grabbing the lion's share of the limelight, dealers said.

  They said most investors remain sidelined ahead of a raft of economic data and a decision on interest rates due out in the US next week which could determine whether the region will see a year-end rally.

  But of the standouts, Mumbai outperformed, surging 1.81 percent on aggressive foreign buying which delivered the benchmark beyond the magical 9,000-point level and to another record close.

  Tokyo leapt 1.45 percent with investors shrugging off a downward revision of economic growth figures and moving in after a sharp fall on Thursday.

  Taipei share prices closed 0.24 percent higher as financial stocks rebounded following a report that the Legislative Yuan set aside a proposal to cap interest rates on credit-card debt.

  They said worries over interest rate spreads dragged down financial stocks over the past two days, but such concerns have eased now.

  The TAIEX added 15.17 points to 6,264.36 on turnover of NT$83.73 billion (US$2.5 billion).

  Select technology stocks also attracted interest on leads such as robust sales figures for last month and strong demand.

  Kai Yuan Securities Investment Consultant Co Ltd (開元投顧) president Tom Tang (湯建源) said technology stocks drew support from both foreign and local investors.

  "Some component makers outperformed thanks to robust demand and positive corporate leads," he said.

  But the reduced turnover suggests possible consolidation going forward, he said.

  "With technical pressure remaining in place following the previous rally, the local bourse in likely to extend its consolidation between 6,200 and 6,350 points in the near term," Tang said.

  Tokyo

  Tokyo share prices closed 1.45 percent higher, rebounding from Thursday's losses as investors shrugged off a downward revision to third-quarter economic growth estimates.

  Dealers said the market had also recovered from the chaos seen Thursday caused by a large erroneous sell order by a major Japanese securities firm which contributed to a bout of profit-taking.

  The NIKKEI-225 index rose 220.69 points to 15,404.05.

  Dealers said the heavy volume was partly due to transactions involving settlements of special quotations in the December futures and options contracts.

  "The NIKKEI index opened lower in knee-jerk reaction to weaker-than-expected revised [growth] data," said Hiroyuki Nakai, chief strategist at Tokai Tokyo Research Center.

  "However, the blue chip marker soon regained upward momentum with market participants hunting for bargains after the sharp decline [on Thursday]," Nakai said.

  The government halved its estimate of economic growth in the third quarter to 0.2 percent but also upgraded its figures for the first and second quarters, mitigating the impact on investor sentiment.

  Dealers said the market had recovered its poise after the chaos Thursday when Mizuho Securities accidentally tried to sell 600,000 shares in telecoms outsourcing company J-Com, more than 41 times the number of the Osaka-based firm's outstanding stock, briefly sowing confusion among investors.

  Seoul share prices closed 0.5 percent lower as foreign investors unloaded major blue chips ahead of the weekend and a US interest rate decision in the coming week.

  Dealers said the market came under pressure as many investors took to the sidelines ahead of the US interest rate decision.

  The KOSPI index closed down 6.78 points at 1,317.42.

  Hong Kong

  Hong Kong share prices closed 0.21 percent firmer on a technical rebound after Thursday's sharp fall, with the gains capped by some year-end selling by institutional investors.

  Dealers said trade was also cautious ahead of this week's US Federal Reserve policy meeting and the WTO summit in Hong Kong.

  The Hang Seng Index closed up 31.35 points at 14,910.51.

  Shanghai share prices rose 1.38 percent to finish a choppy week on a strong note Friday, led by the banks and real estate stocks as investors rotated around the market looking for bargains.

  Dealers said that turnover continued modest in the absence of any fresh lead on the policy front, with the only real feature being interest in the precious metals companies as the price of gold continued to rise.

  The Shanghai A-share Index added 15.96 points to 1,170.81, while the Shenzhen A-share Index was up 4.44 points or 1.63 percent at 277.20. The benchmark Shanghai Composite Index, which covers A and B-shares, rose 15.15 points or 1.38 percent at 1,113.48.

  Sydney share prices closed little changed in lackluster trade marked by late interest which took the market off its lows.

  Dealers said higher prices for oil, gold and base metals helped the resources sector which continued to lead the market.

  The S&P/ASX 200 index was up 2.1 points at 4,580.1.

  Singapore share prices closed 0.67 percent higher on gains in blue chips linked to state investment firm Temasek Holdings.

  The Straits Times Index rose 15.39 points to 2,321.1.

  Kuala Lumpur share prices closed 0.24 percent higher as last-minute buying on selected blue chips by local funds turned around an otherwise sluggish market.

  The Composite Index was up 2.19 points to 898.30.

  Wellington share prices fell 1.47 percent after overnight losses on Wall Street amid concerns about how long interest rates will remain high after the latest hike earlier in the week. The benchmark NZSX-50 gross index was down 46.68 points to 3,183.31.

  In Mumbai share prices surged 1.81 percent to a fresh high on aggressive buying by foreign funds on expectations the economy will post eight percent growth in the second half to March. The 30-share SENSEX climbed 160.97 points to close at a record peak of 9,067.28, beating the previous high of 8,931.16 set on Nov. 29.

  "Foreign funds and also local institutions were strong buyers across all sectors on expectations the economy will continue to grow at eight percent over the second half," said Hemen Kapadia, partner at investment advisory firm Morpheus Inc.
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