Asian stocks made sharp gains on Friday as Tokyo registered its biggest one-day windfall in almost four years amid further signs a Japanese era of deflation is ending.
Dealers said strength in Tokyo and a rally on Wall Street pushed the region higher on the last day of trading before Lunar New Year celebrations, despite oil prices reversing course and heading back toward US$70 a barrel.
A spate of better-than-expected profit results from hi-tech companies added a further shine to sentiment.
As a result, Seoul followed Tokyo, finishing up 2.35 percent, Mumbai rose 1.91 percent to a record close, Hong Kong was up 1.50 percent, Sydney climbed 1.19 percent to another all-time peak and Singapore was 1 percent higher.
The rest of the region was also stronger, but gains were more modest. Taipei and Shanghai were closed for the lunar holidays and many other markets will follow suit and close next week.
Tokyo
Tokyo share prices posted their biggest gain in nearly four years as investors got over the slump of the Livedoor scandal after Sony posted strong results and data showed Japan beating deflation.
The headline NIKKEI-225 index jumped 3.58 percent to a new five-year high, putting the market back on track and at levels which were interrupted early last week when fraud allegations engulfed celebrity Internet firm Livedoor.
The NIKKEI-225 rose 569.66 points, the biggest one-day gain since March 4, 2002. It closed at 16,460.68, the highest level since Sept. 8, 2000.
The broader TOPIX index of all first-section shares gained 47.03 points or 2.86 percent to 1,690.32, the highest level since May 2000.
"Investors had a strong appetite because the key level of 16,500 was right in front of their eyes," said Kazuhiro Takahashi, equity general manager at Daiwa Securities SMBC.
"After the Livedoor shock, the focus is now on the economic fundamentals such as Japan getting out of deflation and strong earning results," he said.
Seoul
Seoul share prices closed 2.35 percent higher on foreign investor support, rising for a fourth session as large cap IT and financial stocks led the rally.
Dealers said Wall Street's gains and South Korea's solid industrial production figures for last month discouraged any profit-taking moves, while rallies in major Asian markets helped sentiment.
The KOSPI index was up 31.81 points at a high of 1,384.56.
Given the strong gains Sejong Securities analyst Im Jung-Suk said that the market would see a correction next week after the run-up.
Hong Kong share prices closed sharply higher, adding 1.5 percent to their value, after Wall Street's overnight gains and continued rally of the Japanese market, which closed at a new five-year high.
Dealers said fresh fund inflows also provided support ahead of the Lunar New Year, which will see the market closed for two days next week.
The Hang Seng index closed up 233.07 points at 15,753.14.
"The local market was mainly boosted by overseas gains. Sentiment was strong, supported by fresh fund inflows, leading to a rally ahead of the Lunar New Year," said Kenny Tang, associate director at Tung Tai Securities.
Sydney
Sydney share prices jumped 1.19 percent to a new record finish on fresh optimism over continued high world commodity prices and rumored takeover activity.
Expectations that the global economy is on a strong growth path that will support high raw materials prices into the future propelled mining giant and index leader BHP Billiton to an all-time share high.
The benchmark SP/ASX 200 index jumped 57.9 points on the day to 4,919.3, putting the market within sight of the historic 5,000-point level and well above the previous record of 4,866.1 reached on Jan 17.
Singapore share prices closed 1 percent higher after key technology firms reported better-than-expected corporate earnings.
The Straits Times Index climbed 23.86 points to 2,412.08.
Malaysian share prices closed 0.10 percent higher in brisk trade, with sentiment supported by gains on the US markets.
The composite index rose 0.87 points to 914.01.
"The strong outlook for corporate earnings and the overnight gains on Wall Street, amid expectations of a further fall in global oil prices, provided fresh impetus for investors to take positions on penny, as well as poultry, stocks on the last trading day before the Lunar New Year," a dealer said.
"Investors are clearly anticipating a post Lunar New Year rally, but I have doubts about the quantum of gains," the dealer said.
Bangkok
Bangkok share prices closed flat as foreign investors stayed on the sidelines ahead of the Lunar New Year holiday.
Dealers said the market was marginally higher as investors took a wait-and-see stance ahead of the release of Thailand's inflation report for this month next week. The composite index edged up just 0.13 points to 761.27.
Indonesian shares closed mixed, ending up 0.25 percent as buying in select blue chips was offset by broader market losses.
The composite index closed up 3.065 points at 1,229.709.
In Manila share prices closed 0.19 percent higher as continued gains in index heavyweight Philippine Long Distance Telephone allowed the market to push its recent modest advance.
Dealers said the gains were capped by profit-taking before the Lunar New Year holiday, when many fund managers are expected to be on vacation.
The composite index rose 4.08 points to 2,121.89.
Wellington share prices closed 0.39 percent higher, following the lead of overseas markets. The NZSX-50 gross index rose 12.91 points to 3,341.10 in light trading.
In Mumbai share prices rose 1.91 percent to a fresh record high on buying by mutual funds and retail investors, led by firm Asian markets and strong economic growth projected for India.
The 30-share SENSEX rose 185.05 points to 9,870.79.
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