Asian stocks roared ahead on Friday after fears of inflation-induced interest-rate hikes abated in the US in response to the release of softer than expected consumer spending figures.
This resulted in a galloping performance by Wall Street and markets in the Asia-Pacific region followed suit, with Tokyo -- already buoyed by its own economic outlook -- leading the surge to close at a fresh five-year high.
Jakarta was among the biggest winners on the day, rising more than 2 percent. Taipei, Manila, Sydney and Hong Kong also registered solid gains and hopes have again been raised for a traditional end-of-year rally.
PHOTO: AP
However, Kuala Lumpur continued to ease after the central bank raised interest rates earlier this week and Bangkok was flat after profit takers moved in to cash-up ahead of a long weekend.
The TAIEX closed 0.80 percent higher, with sentiment bolstered by Wall Street's latest rally and sharp gains in Tokyo which more than offset any concerns about yesterday's local elections.
Dealers said the elections had raised some uncertainty, with the opposition widely expected to do well against the government.
"The Wall Street lead apparently lent support to the local bourse in late trade ahead of tomorrow's local elections," said Calvin Chen, a deputy manager with Yuanta Core Pacific Capital Management Co Ltd (
"Some investors took a cautious approach as they were uncertain about the impact of the election results on the stock market," he said.
Selected conglomerate stocks might have benefited from expectations of group support for year-end window dressing, Chen said.
Against such a backdrop, petrochemical stocks were hit by soft product prices, at a time when they usually enjoy a price uptrend.
"Selected petrochemical products saw their prices weakening, given worries about demand," he added.
The TAIEX closed 49.13 points higher at 6,228.95 on turnover of NT$112.31 billion (US$3.34 billion).
United Microelectronics Corp (聯電) gained NT$0.40 to NT$19.20, Taiwan Semiconductor Manufacturing Co (台積電) rose NT$1.30 to NT$60.60 and AU Optronics Corp (友達光電) rose NT$0.60 to NT$48.20, following strong performances by their respective American Depositary Shares.
Tokyo
Tokyo share prices jumped 1.92 percent to above 15,400 points for the first time in over five years as investors remained enthusiastic about prospects for the economy.
Dealers said a weaker yen, which helps exporters, and a solid performance on Wall Street, where worries about US inflation eased, had added further cheer for investors here.
The NIKKEI-225 index rose 291.10 points to 15,421.60, the highest closing level since Oct. 16, 2000, when it hit 15,512.
"The overall market mood was lifted as both export-oriented electronics shares and domestic demand-oriented banks were bought actively," said Hideo Mizutani, a chief strategist at Sieg Securities. "This means that investors are expecting a further rise."
Mizutani cited the upbeat mood surrounding the market amid a strong dollar which promises to boost earnings of Japanese exporters, as well as the continued growth in the US economy, a major trading partner.
Seoul share prices closed 0.32 percent higher at a fresh record high as foreign investors focused on Samsung Electronics and Hynix, taking their leads from Intel's overnight surge.
Dealers said the mood was buoyed by a galloping performance on Wall Street where fears of further interest rate hikes due to inflation were abating, at least for the short term.
The KOSPI index closed up 4.14 points at 1,310.12.
Hong Kong share prices closed 0.88 percent higher as the latest economic data from the US, which showed an easing in inflationary pressures, renewed hopes that the interest rate-rise cycle there will be brought to an end soon.
Dealers said that fresh gains in Link REIT, Wall Street's overnight rise and the Japanese stock market's extended rally also supported sentiment. The Link REIT closed up 0.45 at 13.25.
The Hang Seng Index closed up 132.35 points at 15,200.38.
Kenny Tang, associate director at Tung Tai Securities, said the latest economic data from the US has eased worries about the outlook for interest rates.
Shanghai share prices closed 0.39 percent lower in thin trade, with a lack of fresh leads prompting investors to sell and as warrants, or stock derivatives, remained in focus.
Dealers said the market continued in its narrow range, showing no sign of any change to the recent trading pattern whilst warrants -- highly speculative share derivatives -- continued to attract most of the attention.
Small and medium-sized companies were hit by news that the Shenzhen Stock Exchange may resume initial public offerings on its secondary board soon.
The Shanghai A-share Index lost 4.49 points to 1,150.47, and the Shenzhen A-share Index was down 2.62 points at 274.31. The benchmark Shanghai Composite Index, which covers A and B-shares , fell 4.46 points or 0.41 percent at 1,094.29.
Sydney
Sydney share prices closed 0.95 percent higher as rising commodity prices and a positive lead from Wall Street helped end a three-day losing streak.
Dealers said blue-chip mining stocks BHP Billiton and Rio Tinto enjoyed strong support after solid buying in their London-listed stock while gold stocks benefited from high gold prices.
"The strong commodity prices overnight with copper reaching record levels and gold trading at its highest in 23 years provided the perfect lead for both BHP Billiton and Rio Tinto with both stocks posting significant gains," CMC Markets' senior dealer James Foulsham said.
The SP/ASX 200 index rose 43.4 points to 4,623.5.
Singapore share prices closed 0.93 percent higher on gains in technology stocks following an upbeat outlook for the sector due to rising global demand.
"The technology sector is behaving as expected. It is still going strong, contributing to the rebound in the STI," a dealer from a local brokerage said.
Dealers said that next week players will likely take their cue from Wall Street, in the absence of local corporate news ahead of the Christmas holidays.
The Straits Times Index (STI) rose 21.53 points to 2,332.52.
In Kuala Lumpur share prices closed 0.30 percent lower with most investors reluctant to take fresh positions ahead of the weekend.
The Kuala Lumpur Composite Index was down 2.66 points at 885.14.
Bangkok share prices closed just 0.16 percent lower amid ongoing profit taking in large market capitalization stocks in the energy and construction sectors prior to a long weekend.
Dealers said the selling bucked the trend of regional markets and was enough to offset positive sentiment stemming from a strong overnight rally on Wall Street and another solid day in Tokyo.
The Composite Index shed 1.04 points to 659.91.
Wellington share prices closed 0.15 percent higher in a muted end to the week's trading. The NZSX-50 gross index rose 4.99 points to 3,297.24.
In Mumbai share prices closed just 0.19 percent higher as investors continued to buy blue chips on the back of strong economic growth data for the second quarter to October.
The 30-share benchmark SENSEX index rose 16.83 points to 8,961.61.
"There was some buying in select stocks as investors continued to buy given the strong economic growth figures, but the index is still not closing above the 9,000 mark," a fund manager with a leading brokerage said.
India's economy expanded by 8.0 percent in the second quarter of the financial year, exceeding analyst expectations.
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