HONG KONG, Oct 25: Asian stocks closed off their highs on Tuesday after the initial cheers that accompanied a new US Federal Reserve chairman faded and the realities of inflationary pressures returned to haunt investors.
Dealers said bargain hunters had pushed most markets sharply higher in early trade in response to Wall Street’s gains and the appointment of Ben Bernanke to replace Alan Greenspan when he retires.
But fears that rising inflation will lead to higher interest rates were never far from the surface and the early buying spree gave way to afternoon profit taking, leaving markets to close mixed.
Dealers said there was also some concern about a possible bird flu outbreak, particularly in Taipei which closed flat and Bangkok which fell sharply, but it remained surprising that the region did follow Wall Street’s glee.
Singapore, Kuala Lumpur and Seoul all closed lower amid inflation fears. But Tokyo and Sydney were sharply higher with buying remaining strong in the aftermath of Bernanke’s posting.
TOKYO: Share prices rose 1.33 per cent, riding the coat-tails of Wall Street as US gains helped the market overcome jitters about upcoming company results.
The Nikkei-225 index rose 174.44 points to 13,280.62 on turnover of 2.48 billion shares.
Steelmakers were among the main gainers. Kobe Steel closed up 11 yen to 329, JFE Holdings gained 100 yen to 3,480 and Nippon Steel rose nine yen to 407.
HONG KONG: Share prices closed up 0.16 per cent but were well off early highs made following sharp gains on Wall Street in a positive response to the nomination of White House economic adviser Ben Bernanke as the next Federal Reserve chief.
The Hang Seng Index closed up 22.53 points at 14,424.88. Turnover was US$2.1 billion.
Sun Hung Kai Properties lost 0.30 to 74.00, HSBC rose 0.20 to 120.90, China Mobile gained 0.10 to 34.75 and PetroChina was up 0.15 at 5.80.
SYDNEY: Share prices rose 0.97 per cent as bargain hunters moved into a market that had been at three-months lows.
The SP/ASX 200 index closed up 42.1 points at 4,399.3. Market volume was 1.0 billion shares worth 4.19 billion dollars.
In resources, BHP Billiton rose 39 cents to 20.16 dollars and Rio Tinto was up 93 dollars at 55.20 dollars.
SINGAPORE: Share prices rose 0.16 per cent but were well off early highs after investors opted for safety rather than push the market higher despite Wall Street’s sharp advance overnight.
The Straits Times Index added 3.63 points to 2,226.46. Volume totalled 903 million shares worth US$484 million.
KUALA LUMPUR: Share prices closed flat, finding no lead in Wall Street’s sharp gains overnight while investors remained concerned over an uncertain economic outlook and rising inflation.
The Composite Index added 0.05 points to 904.75 and volume traded was 323.53 million shares, worth 628.93 million ringgit (166.61 million dollars).
JAKARTA: Share prices closed 1.02 per cent lower on concerns that the central bank will increase interest rates further after raising its full-year inflation forecast to 14 per cent from 12 per cent.
The Composite Index shed 10.910 points to 1,062.172 on volume of 1.65 billion shares worth 828.57 billion rupiah.
WELLINGTON: Share prices rose 0.84 per cent, as investors went bargain hunting after the market ended last week on a three-month low.
Fletcher Building, which lost ground last week, rose 13 cents, or 1.7 per cent, to 7.75 dollars, while market leader Telecom jumped seven cents, or 1.2 per cent, to 5.82.
MUMBAI: Share prices closed 0.90 per cent higher after the central bank said in a policy review that the economy would grow faster than previously forecast this fiscal year.
The Sensex index rose 70.94 points to 7,991.74 in low turnover of US$533 million.—AFP
