Asian stocks closed mixed and tending higher on Friday following strong gains on Wall Street overnight where tame inflation data further eased fears over interest-rate hikes.
That, coupled with the prospect of flat interest rates in Japan over the near term, helped Tokyo to a 1.51 percent higher close, and this lent support to Seoul, Taipei and Hong Kong, all of which finished stronger.
Jakarta was again the best performer surging 2.46 percent to another record close amid speculation the government will drop a planned increase in power tariffs.
Bangkok made a slight gain, but foreign investors remained on the sidelines amid ongoing calls for the resignation of Thai Prime Minister Thaskin Shinawatra.
However, gains were not convincing, with profit takers looking to cash out of markets that have peaked at historical highs and this resulted in Wellington closing flat as Sydney and Mumbai posted modest falls.
Kuala Lumpur was also flat, while Shanghai and Singapore were lower.
Taipei share prices closed 0.36 percent higher, finding some support after a lackluster overnight showing on Wall Street amid continued concerns over tensions with China.
Dealers said interest was muted in cautious trade ahead of planned rallies this weekend.
The TAIEX rose 23.59 points at 6,528.57 on turnover of NT$90.81 billion (US$2.80 billion).
"We had a market that could not be bought up or sold down significantly today," Barits International Securities assistant vice president Alex Huang said.
Huang said even prospects of improved corporate revenues for this month may not be a strong enough catalyst for a market rebound as street demonstrations at the weekend kept investors sidelined.
"An uncertainty is an uncertainty and that is good reason for investors not to become too aggressive," he said.
Tokyo
Tokyo share prices closed 1.51 percent higher as worries about an early rise in interest rates abated and after the Dow Jones hit fresh multi-year highs.
Dealers said that the market took comfort from remarks by Bank of Japan governor Toshihiko Fukui, who told a parliamentary committee Thursday it was too soon to say when interest rates would rise.
The NIKKEI-225 index rallied 243.52 points to 16,339.73. on turnover of 1.53 billion shares.
Seoul share prices closed 0.38 percent higher, rising for a third day as investors focused on chipmakers and other selected blue chips in the absence of a really positive lead from Wall Street.
The market opened on a weak note, pressured by rising oil prices but then managed to recover with modest gains ahead of the weekend.
The KOSPI index closed up 5.14 points at 1,341.12.
Hong Kong share prices closed 0.46 percent higher as investors welcomed stronger-than-expected 2005 results from China Mobile and tame US inflation data.
Dealers said sharp gains on the Tokyo market also helped the benchmark index recover the 15,800 points level.
The Hang Seng Index rose 72.62 points to 15,801.66.
Shanghai share prices closed 0.36 percent lower, slipping back after a positive week on concerns about the outlook for liquidity as automakers and power generators lost ground.
Dealers said investors remain uneasy at the prospect the authorities will soon allow the resumption of new share offers and approve overseas investment by domestic institutions, hitting liquidity as a result.
RSS