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.
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