Asian stocks ended the trading year on Friday on another high as Sydney, Shanghai and Singapore closed at record highs with gains capped by profit taking.
The profit taking followed mild losses on Wall Street overnight and resulted in Hong Kong easing off its record high but elsewhere the year end rally could not be thwarted with Shanghai soaring 4.22 percent.
Taipei, Manila and Kuala Lumpur also registered solid gains while Bangkok was little changed and Tokyo ended the day flat in thin half day trade. Jakarta and Seoul were closed for public holidays.
TAIPEI
Share prices closed up 1.17 percent at a more than a six-year high on continued year-end window-dressing activity and a stronger NT dollar following the central bank's decision on Thursday to raise interest rates.
Dealers said the central bank's move has triggered expectations of a further influx of foreign capital into Taiwan.
The weighted index closed up 90.79 points at 7,823.72 on turnover of NT$102.95 billion (US$3.16 billion).
"The rate hikes by the central bank boosted the Taiwan dollar and triggered a buying spree in the stock market," said Johnny Lee, manager at President Securities.
"Prospects of upswing in interest rates are drawing a rosy picture for the local currency and heightened hopes for more foreign capital inflows," he said.
Amid such hopes, investors extended their window-dressing activity into the last session of the year, he said.
"With regional currencies poised for further appreciation, more funds may move in [to Asia] ... and liquidity needs to find exit" through instruments such as equities, Lee said.
Meanwhile, the launch of Microsoft's new operating system Vista should boost demand for electronic products such as notebook computers and benefit the entire supply chain.
United Microelectronics Corp closed up 0.10 at 20.25.
TOKYO
Share prices inched up in the final trading session of this year to leave the benchmark index with a gain of 6.92 percent over a turbulent year marked by financial scandals.
The Nikkei-225 index gained 1.02 points to 17,225.83. Volume was 985 million shares, compared with 1.77 billion for all Thursday.
The final day of trade was quiet, with the market little affected by Wall Street's slip overnight.
Mitsushige Akino, chief fund manager at Ichiyoshi management, said investors might start the new year by selling shares because the market had been overheating.
"There might be a short-term position-adjusting early next year but the key is whether the market will be helped by buying on dips," he said.
HONG KONG
Share prices closed 0.19 percent weaker, trading just below the key 20,000-point mark, as investors locked in profits in some China stocks and select blue chips.
Dealers said turnover thinned from Thursday when the benchmark index broke the 20,000 points level for the first time, and investors took a cautious stance ahead of the long weekend.
The Hang Seng Index closed down 37.19 points at 19,964.72.
"The market was weak, with some profit-taking in China related stocks and select blue chips, as investors turned cautious after more than 600-point gain in the last two days," said Castor Pang, strategist at Sun Hung Kai Financial group.
"Turnover was trimmed in late trade as investors were readying for the New Year holiday," he said.
Pang noted that property counters outperformed as the sector has lagged the market's gains this year.
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