Asian stocks closed mostly up on Friday amid growing hopes of a US interest rate cut, but Shanghai bucked the trend by falling more than 2 percent as investors nervously eyed upcoming flotations.
The rally came after investors took comments by US Federal Reserve chief Ben Bernanke to suggest that the US central bank will cut interest rates again this month.
Tokyo was up 1.08 percent, Hong Kong rose 0.6 percent, Taipei was up 1.65 percent, Seoul jumped 1.5 percent, Sydney ended up 1.4 percent and Singapore climbed 1.24 percent.
Bernanke said on Thursday that Fed policymakers would need to be "exceptionally alert and flexible" given the increased uncertainty about the US economic outlook.
However, his comments failed to inspire investors in China, with the main index in Shanghai falling 2.63 percent.
Analysts said a number of big upcoming flotations in China had raised the worry that investors would sell existing holdings to buy the new shares.
TAIPEI
Taiwan share prices closed 1.65 percent higher after US Federal Reserve chairman Ben Bernanke's comments bolstered hopes that US borrowing costs will fall this month.
The weighted index closed 139.37 points higher at 8,586.40 on turnover of NT$131.92 billion (US$4.08 billion).
Risers led decliners 1,525 to 581, with 358 stocks unchanged. A total of 47 stocks closed limit-up, while 30 were limit-down.
"The rate cut hopes helped ease worries over the US economy and consumption," Oliver Fang of Yuanta Core Pacific Securities said.
Taiwan Semiconductor Manufacturing Co gained NT$0.60 to NT$60.60 and United Microelectronics Corp added NT$0.15 to NT$19.30.
Hon Hai Precision was steady at 206.00, while MediaTek gained 16.50 to 421.50, Powerchip Semiconductor added 0.70 to 12.45 and AU Optronics rose 1.50 to 62.50.
TOKYO
Japanese share prices closed more than one percent higher as Federal Reserve chief Ben Bernanke cheered markets by hinting at another US interest rate cut next month, dealers said.
They said worries over the US subprime loan crisis continued to ease, tempting bargain-hunters to buy shares after the market's recent beating, while a weaker yen stirred interest in exporter shares.
The Tokyo Stock Exchange's benchmark Nikkei-225 index gained 166.93 points or 1.08 percent to 15,680.67, rising for a second straight day.
The broader Topix index of all first-section shares climbed 17.41 points or 1.15 percent to 1,531.88.
Gainers outnumbered decliners 1,229 to 406, with 84 issues unchanged.
Turnover rose to 2.62 billion shares from 1.95 billion on Thursday.
Signs are emerging that the market's recent downtrend, triggered by the subprime loan turmoil, may have bottomed out, said Shigeo Kikuchi, a market analyst for Takagi Securities.
Investors were also weighing news that Japan's core consumer prices rose for the first time in 10 months in October, although analysts said the recovery was largely due to high energy prices which will push up company costs.
Mizuho Financial Group was up 12,000 or 2.1 percent at 595,000, Sumitomo Mitsui Financial rose ¥31,000 or 3.4 percent at 951,000 and Mitsubishi UFJ Financial jumped ¥13 or 1.2 percent higher at 1,089.
Sony was down ¥30 or 0.5 percent at 6,010.
HONG KONG
Hong Kong share prices closed 0.6 percent higher as optimism rose for an interest rate cut next month by the Fed to bolster the US economy, dealers said.
The Hang Seng Index closed up 161.07 points at 28,643.61. The index gained nearly 8 percent this week after tumbling for three successive weeks last month.
"The market made reasonable gains today, mainly spurred by a stronger US market," said Conita Hung, head of research at Delta Asia Securities.
Local property stocks rallied, with Cheung Kong advancing 2.40 to 146.30.
But HSBC shares fell 20 to US$132.10, after Moody's cut its rating outlook on the stock to "stable" from "positive."
Local banks surged on optimism of further rate cuts. Bank of East Asia rose 80 to US$47.35, while BOC Hong Kong gained 59 to 20.35.
Shares in Ping An gained 2.75 to 85.95. Ping An said on Thursday that it had agreed to buy a 4.18 percent stake in Fortis Group for 1.81 billion euros (US$2.68 billion).
This is Ping An's first major investment overseas and is in keeping with the growing trend of Chinese firms expanding their global presence, analysts said.
SHANGHAI
Chinese share prices closed sharply lower as investors took profits from the previous day's rally amid liquidity worries due to large initial public offerings, dealers said.
The benchmark Shanghai Composite Index, which covers both A and B shares, closed down 131.56 points or 2.63 percent at 4,871.78 on turnover of 70.50 billion yuan (US$9.53 billion).
Dealers said liquidity was expected to be tight after China Railway Group booked 3.383 trillion yuan from both institutional and retail share applications last week.
Meanwhile Hong Kong-listed China Shipping Container Lines will launch subscriptions for its issue of 2.3 billion A shares in Shanghai next week.
China Pacific Insurance also said it planned to issue one billion A shares in Shanghai, and the securities regulator will review the insurer's flotation plan tomorrow.
The Shanghai A-share Index fell 139.72 points or 2.66 percent to 5,112.13 on turnover of 69.13 billion yuan. The Shenzhen A-share Index lost 23.81 points or 1.81 percent at 1,295.43 on turnover of 29.15 billion yuan.
PetroChina closed down 1.53 yuan or 4.63 percent at 31.52. China Life Insurance lost 1.60 yuan to 54.83 and Ping An Insurance fell 1.25 yuan to 108.73.
The Shanghai B-share Index rose 12.23 points or 3.70 percent to 343.01 on turnover of US$1.37 billion.
The Shenzhen B-share Index rose 26.25 points or 3.95 percent to 690.91 on turnover of HK$820.64 million (US$105 million).
SEOUL
South Korean share prices closed 1.5 percent higher, with the KOSPI index reclaiming the 1,900-point level for the first time in two weeks amid hopes for a US rate cut, dealers said.
The KOSPI ended 28.44 points higher at 1,906.00. The closing level was the best since 1,926.20 on Nov. 16. The benchmark index finished the week with a 7.5 percent gain.
Volume was 330 million shares worth 6.5 trillion won (US$7.05 billion).
"The KOSPI recouped about half of what it lost during its slide from this month's peak," said Woori Investment Securities analyst Lee Youn-hak.
"But the advance is largely seen as nothing more than a technical rebound, and it is hard to say that the market has found sustainable stability," Lee said.
Hyundai Heavy rose 5,000 won or 1.1 percent to 470,000 and Hyundai Mipo Dockyard added 5,500 at 319,500. STX Shipbuilding surged 5,200 to 61,000.
POSCO climbed 10,000 to 587,000. Woori Finance gained 450 at 17,700. Hynix Semiconductor rose 1,400 to 25,900.
SYDNEY
Australian share prices closed up 1.4 percent amid hopes for another US rate cut despite National Australia Bank losing two percent on concerns about its takeover of a US bank, dealers said.
The benchmark S&P/ASX 200 index closed up 88.6 points at 6,533.1. It was up 202.9 points or 3.2 percent on last Friday's close.
The broader All Ordinaries index closed up 1.3 percent or 86.4 points at 6,593.6.
Some 2.3 billion shares worth about A$11.3 billion (US$10 billion) changed hands.
National Australia Bank fell A$0.78 or two percent to 38.30 amid investor concerns about its takeover of South Dakota-based agricultural bank Great Western Bank.
SINGAPORE
Singapore share prices closed 1.24 percent higher on increased hopes the US Federal Reserve will cut interest rates, dealers said.
The Straits Times Index added 43.05 points to 3,521.27. Volume totalled 1.99 billion shares worth S$3.05 billion (US2.12 billion).
"The Fed statements seem a bit more friendly towards a rate cut," said Khiem Do, a strategist at Baring Asset Management.
Banks closed higher led by DBS Group which gained S$0.30 to S$20.10. Oversea-Chinese Banking Corp was S$O.O5 up at S$8.50 and United Overseas Bank was S$0.30 firmer at S$19.80.
KUALA LUMPUR
Malaysian share prices closed 1.7 percent higher after Sime Darby, the world's largest palm oil grower, was relisted, dealers said.
Sentiment was also bolstered by hopes of a US rate cut, they said.
The Kuala Lumpur Composite Index was up 22.66 points at 1,396.98.
Volume was 970.32 million shares valued at 2.6 billion ringgit (US$774 million).
Sime Darby closed up 2.10 ringgit at 11 ringgit. It traded to a high of 12.10 ringgit in early deals, up 36 percent from its reference price of 8.90 ringgit.
Telekom Malaysia was down 20 sen at 10.80 ringgit, while national power company Tenaga added 20 sen to 9.25 ringgit.
JAKARTA
Indonesian share prices closed 0.4 percent lower as investors opted to lock in gains in late trade ahead of the release of last month's consumer inflation data next week, dealers said.
The Jakarta Stock Exchange composite index closed down 11.49 points at 2,688.33 on volume of 6.53 billion shares worth 6.92 trillion rupiah (US$739 million).
The key index hit an all-time intra-day high of 2,737.81 yesterday, before closing at 2,699.82.
MUMBAI
Indian share prices closed up 1.89 percent, buoyed by hopes that the US Federal Reserve will cut interest rates at its next monetary policy meeting, dealers said.
The benchmark 30-share Sensex index closed up 359.93 points or 1.89 percent at 19,363.19.
The market welcomed India's economic growth figures, which showed the economy grew by 8.9 percent in the second quarter to September, a rate of expansion second only to China's.
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