Asian stocks bounced back to close broadly higher on Friday amid easing concerns over a tightening of monetary policy in China, and on the back of a record close on Wall Street overnight.
A further tightening by Beijing, including interest rate hikes, remains on the cards after China posted a sharp spike in quarterly economic growth figures and prompted Thursday's sell-off in stocks around the region.
However, on the day bargain hunters moved in on what many described as a technical rebound with investors also adopting a wait-and-see approach to what Beijing authorities will do next to cool their rapidly overheating economy.
Bucking the trend were Bangkok and Wellington, which both closed flat.
TAIPEI
Share prices closed 0.69 percent higher as a recovery across major regional markets during morning trading allowed for a technical rebound in the local bourse.
Dealers said that while there were lingering concerns over credit-tightening measures in China to rein in its surging economy, the recovery in Chinese stock markets on Friday morning convinced investors here to follow suit.
The weighted index closed up 54.04 points at 7,942.67 on turnover of NT$92.39 billion (US$2.79 billion).
Yuanta Core Pacific Capital Management (
"The China lead undermined the local bourse yesterday, but the rebound there also set the tone for Taipei stocks today," Tam said.
He said worries were eased by an absence of any immediate fresh macro-economic control measures announced in China, but added that it was too early to say whether this factor had run its course.
TOKYO
Share prices staged a modest rally on Friday as investors welcomed gains on the US and Chinese bourses amid easing concerns about China's breakneck economic growth.
Dealers said that a softer yen also lifted sentiment after Wall Street edged up to a second consecutive record finish overnight, although gains were limited owing to caution ahead of a slew of Japanese corporate results next week.
The NIKKEI-225 index rose 80.65 points to 17,452.62. Volume dropped to 1.79 billion shares from 2.14 billion on Thursday.
HONG KONG
Share prices closed 1.31 percent higher, rebounding from Thursday's steep decline amid hopes that Chinese authorities will take measured steps to cool down the country's economy.
Dealers said investors also noted a recovery on Shanghai's A-share market, which bounced back 3.92 percent after tumbling 4.5 percent Thursday amid worries over possible policy tightening.
The Hang Seng Index closed up 266.88 points at 20,566.59.
SEOUL
Share prices closed sharply higher as investors took their cue from a rebound in other Asian markets after heavy selling the previous day.
Dealers said Thursday's sell-off was prompted by fears the Chinese government may tighten credit further, in the wake of stronger than expected growth and inflation in the first quarter.
Foreign investor interest in both the spot and futures markets improved overall supply and demand, they said, with steelmakers, builders and shipbuilders among the most sought-after stocks.
The KOSPI index ended up 19.42 points at 1,533.08.
SHANGHAI
Share prices closed 3.92 percent higher as concerns about a possible fresh round of economic cooling measures eased despite the release of very strong growth figures.
RSS