Wary Asian markets end week with modest gains

Asian stock markets closed with mostly modest gains on Friday, consolidating a solid performance ahead of a key US employment report that was due later in the day and was expected to set the near-term direction, dealers said.

They said investors were happy to buy in cautiously after the recent turbulence, but they were wary of the US labor data and Wall Street's reaction to it amid hopes a strong set of figures will calm nerves about the US outlook.

Any unwelcome news could easily undo what has so far been a technical recovery and cause more damage still if it suggests the US economy is weakening much faster than anticipated, upsetting calculations based on a soft-landing scenario.

TAIPEI

Taiwanese share prices closed little changed in slower trading as investors turned cautious and reluctant to push gains any further after three consecutive winning days, dealers said.

Wall Street's continued advance overnight also provided some room for investors to lock in profits ahead of the weekend, they added.

The TAIEX fell 5.67 points at 7,568.20, off a low of 7,550.83 and a high of 7,619.35, on turnover of NT$96.37 billion (US$2.92 billion).

"People had the feeling that it might be time for a pause after three consecutive sessions of a technical rebound," Jih Sun Securities Investment Consulting Co (日盛投顧) deputy manager Wilson Lien said.

Barring big surprises from other major markets, the Taipei bourse is likely to enter a phase of consolidation in the near-term, he said.

TOKYO

Japanese share prices ended in positive territory for a second day running, supported by a rebound on other battered global bourses and by a weaker yen, dealers said.

They said that investors also welcomed stronger-than-expected Japanese machinery orders data, a key gauge of corporate capital spending.

The Tokyo Stock Exchange's benchmark NIKKEI-225 index of leading shares gained 73.73 points or 0.43 percent to 17,164.04, after adding 1.94 percent on Thursday. The broader TOPIX index of all first section issues was up 9.35 points or 0.54 percent to 1,730.31.

HONG KONG

Hong Kong share prices closed 0.21 percent weaker as investors locked in profits quickly after Thursday's gains amid continuing uncertainty surrounding global markets, dealers said.

Trading was cautious ahead of key employment data in the US later in the day although strong results from some local firms and China's new corporate income tax policy helped limit the downside.

The benchmark Hang Seng Index closed down 40.29 points at 19,134.88, off a low of 19,065.03 and high of 19,259.10.

"The Hang Seng tested the 19,200 level, prompting investors to lock in profits. Selling was also expected after Thursday's strong gains and ahead of the weekend," said Kenny Tang, associate director at Tung Tai Securities.

SEOUL

South Korean share prices closed little changed as profit-taking offset gains in exporters amid easing concerns over the US economy and the appreciation of the local currency, dealers said.

The KOSPI index was down 0.31 points at 1,423.58, off a low of 1,415.71 and a high of 1,434.7.

SHANGHAI

Chinese share prices closed narrowly mixed after early losses, with investors unwilling to push prices ahead too much further after a very solid performance repaired some of last week's damage, dealers said.

They said that there was some interest in stocks which had suffered most in the recent turmoil, such as the banks, as with the expected launch of futures contracts in the first half of the year, these stocks could be sought after.