Asian markets post gains for second week

Asian stocks climbed for a second week on speculation company earnings and global economic growth will withstand a US housing slump.

CNOOC Ltd (中國海洋石油), China's largest offshore oil explorer, climbed after reporting net income that beat estimates, while Woolworths Ltd, Australia's biggest retailer, gained as it forecast higher profits. Sony Corp led exporters higher ahead of an announcement by US President George W. Bush of measures to help subprime-mortgage borrowers.

"The market is going to be led by sentiment on the US subprime situation," said Jason Teh, who helps manage the equivalent of about US$6.5 billion at Investors Mutual Ltd in Sydney. "The reassuring earnings results across the board may help combat some of the influence from the US."

The Morgan Stanley Capital International Asia-Pacific Index added 2.6 percent to 152.16, as all 10 industry groups advanced. The measure jumped 8.1 percent in the previous five-day period, after a four-week, 15 percent rout.

Gains in the past two weeks trimmed the MSCI Asian index's monthly loss to 2.4 percent. The benchmark fell last month for the first time in 11 months as losses from subprime mortgages triggered a rout that wiped more than US$5.5 trillion from the value of global stock markets.

CNOOC gained 6.5 percent this week to HK$9.53. The offshore oil explorer said first-half profit slid 11 percent to 14.6 billion yuan (US$1.9 billion), beating analyst estimates.

China Construction Bank Corp (中國建設銀行) rose 12 percent to a record HK$6.53 in Hong Kong. First-half net income rose to 34.2 billion yuan from 23.2 billion yuan, the lender said.

Hon Hai Precision Industry Co (鴻海精密), Taiwan's biggest contract electronics manufacturer, rose 4.1 percent to NT$245.

LG Electronics Inc, South Korea's second-biggest exporter, advanced 1.1 percent to 72,000 won. Li & Fung Ltd (利豐), a Hong Kong-based trading company that sells goods to Wal-Mart Stores Inc, added 1.8 percent to HK$28.90.

TAIPEI

Taiwanese share prices closed sharply higher, up 2.41 percent on follow-through buying, regional strength and support for stocks with an exposure to China.

Dealers said investors found no comfort in Wall Street's lackluster performance overnight, with the Dow slipping 0.38 percent.

The weighted index closed up 210.95 points at the day's high of 8,982.16 on turnover of NT$166.14 billion (US$5.03 billion).

Jack Tam, an assistant vice president with Yuanta Core Pacific Securities Investment Consulting (元大京華投顧), said the strength of the Asian markets propped up the local bourse, helped further by advances made by China plays.

"Some local firms' exposure to the [Chinese] market really paid off. Their earnings results encouraged investors to chase share prices much higher," Tam said.

TOKYO

Japanese share prices closed 2.57 percent higher as technology stocks soared on strong earnings by US giant Dell and a depreciation of the yen after recent volatility.

The NIKKEI-225 index closed up 415.27 points at 16,569.09.

HONG KONG

Share prices closed sharply higher, up 2.13 percent, after briefly breaking 24,000 points for the first time as China stocks and blue chips surged on hopes of new mainland money.

The Hang Seng Index closed up 499.6 points at 23,984.14.

The Hang Seng Index saw triple-digit swings on as many as 17 of the 23 trading days this month, with 10 days seeing swings of more than 500 points.