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Asian stocks end week mixed in hesitant trading

Asian stocks closed mixed in hesitant Friday trading, with investors wrong-footed as Wall Street reversed its view that the latest comments from the US Federal Reserve meant a US interest rate cut was on the cards, dealers said.

Markets rose sharply on Thursday as investors welcomed a change in emphasis in the Fed statement after its interest rate meeting which was taken to mean the central bank was now more worried about the economy slowing than inflation.

If that was the case, then the Fed would be more likely to cut interest rates sooner rather than later but on a second glance, Wall Street turned more cautious, noting the bank's warning that inflation remained an issue which could go either way.

"The [Fed] statement did remove the bias towards tightening [interest rates] but there was no hint of any rate cut soon. It was modestly positive news at best," Dick Green at Briefing.com said.

As the view changed, US stocks managed only very modest gains, making for an uncertain start to the Asian day, with investors deciding there was little to be gained from any aggressive trades ahead of the weekend.

Kuala Lumpur, a market which has been a laggard overall, was the best performer, rising 1.14 percent to extend gains to a seventh straight day.

TAIPEI

Taiwanese share prices closed 0.46 percent higher, extending Thursday's gains as foreign investors maintained their buying interest, dealers said.

They said the market, however, appeared to lack enough support to get much nearer the psychologically significant barrier of 8,000 points, with investors awaiting more convincing leads to justify aggressive buying following a mixed performance on Wall Street overnight.

The weighted index rose 35.65 points at 7,859.32, after trading between 7,806.89 and 7,879.09, on turnover of NT$109.02 billion (US$3.30 billion).

Risers led decliners 605 to 460, with 243 stocks unchanged.

"Although people could not bring themselves to push the upside aggressively, there was no reason for them to decisively pull out either," Jih Sun Securities Investment (日盛投顧) deputy manager Wilson Lien said.

Lien said the local bourse is likely to keep up a generally positive tone so long as international markets and Wall Street provide that lead.

Given that foreign investors are positive on the Taiwan market again, there is a good chance it should breach 8,000 points before long, he said.

At the same time, the market will face a testing time as companies start reporting their first quarter to March results, he said, adding that the key techs normally go through a seasonally weak period in the first three months.

TOKYO

Japanese share prices closed up 0.35 percent, extending their winning streak to a fourth trading day as a weaker yen gave a lift to exporters, dealers said.

The Tokyo Stock Exchange's benchmark NIKKEI-225 index of leading shares gained 61.41 points to 17,480.61.The TOPIX index of all issues on the Tokyo Stock Exchange's first section advanced 10.14 points or 0.59 percent to 1,741.94.

HONG KONG

Hong Kong share prices closed flat, consolidating strong gains made this week as the market recovered lost ground on the back of solid results from the major companies, dealers said.

Buying momentum turned weak Friday, however, with most of the top company results now out and trade was cautious as the market awaited key housing data in the US after Wall Street provided no lead overnight.

The Hang Seng Index added 2.39 points at 19,692.64, off a low of 19,634.11 and high of 19,729.49. For the week, the market was up 739.14 points or 3.9 percent.

SEOUL

South Korean share prices closed little changed, with investors turning cautious ahead of the weekend and the corporate earnings season beginning next month, dealers said.

The KOSPI index slipped 1.15 points at 1,447.38, off a high of 1,454.34 and a low of 1,443.04. The market gained 19.50 points for the week.

SHANGHAI

Chinese share prices closed 0.10 percent higher, edging up for another record finish as early losses were recovered on the back of sustained capital inflows, dealers said.

The benchmark Shanghai Composite Index, which covers both A- and B-shares listed on the Shanghai Stock Exchange, added 3.06 points to a record close of 3,074.29.

The Shanghai A-share Index was up 3.25 points or 0.10 percent at 3,230.27 and the Shenzhen A-share Index rose 9.11 points or 1.08 percent at a record 853.16.

SYDNEY

Australian shares closed flat in cautious trade as some investors took profits following Thursday's sharp rally, dealers said.

The benchmark S&P/ASX 200 slipped 3.4 points at 5,952.3 and the broader All Ordinaries shed 2.3 points to 5,933.1.

SINGAPORE

Singapore share prices closed 0.43 percent lower on a lack of fresh leads and as investors consolidated a series of strong gains made this week, dealers said.

The Straits Times Index was down 13.69 points at 3,205.82.

KUALA LUMPUR

Malaysian share prices closed 1.14 percent higher, extending gains to a seventh straight day after the government announced major incentives for the property sector, dealers said.

The Kuala Lumpur Composite Index closed up 13.93 points at 1,235.65.

MUMBAI

Indian share prices closed down 0.17 percent, snapping four straight days of gains as investors took profits after a sharp rally led by global trends, dealers said.

The 30-share Mumbai stock exchange SENSEX index fell 22.1 points at 13,285.93, having risen 855 points or 7.06 percent on Thursday.
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