September 19, 2006	Tuesday	Sha'aban 25, 1427

HONG KONG, Sept 18: Asian stocks closed higher on Monday with markets supported by a growing belief that the United States Federal Reserve will leave interest rates unchanged when it meets later in the week.

Benign inflation figures, lower oil prices and indications of a slowing in the US economy were the main reasons behind the prospect of no further interest rate hikes expected from Wednesday's meeting.

The central bank paused last month after 17 straight quarter-point rate hikes, resulting in a surge in stock markets around the world and in Asia there were no signs of positive sentiment abating.

SYDNEY: Share prices closed 0.72 per cent higher as investors bought the banks in a portfolio adjustment which outweighed losses in the mining sector.

Dealers said the underlying tone remains positive despite recent choppy trade, with stocks looking very good value on a historical basis which should provide the basis for further gains.

“Investors would be hard pressed to find better buying conditions on the Australian sharemarket,” he said.

Not only are valuations super cheap, but returns from dividends are at the best levels recorded in 16 months and falling oil prices have reduced the prospect of interest rate hikes over the remainder of the year.”National Australia Bank rose $0.59 to 36.94.

SINGAPORE: Share prices closed 1.19 per cent higher, boosted by buying interest in blue chips including Singapore Airlines.

The main Straits Times index rose 30.11 points to 2,552.02. Volume totalled 1.02 billion shares worth $1.11 billion (US$702m).

KUALA LUMPUR: Share prices closed 0.68 per cent higher on easing rate fears with the gains led by utility giant Tenaga Nasional.

The composite index was up 6.56 points at 965.55 on turnover of 551 million shares worth 946 million ringgit ($270m).

JAKARTA: Share prices closed 0.58 per cent higher led by Telkom and Astra International.

The composite index closed up 8.557 points at 1,474.258 on volume of 1.30 billion shares valued at 1.65 trillion rupiah ($181m).

WELLINGTON: Share prices closed 0.26 per cent higher, with a handsome profit report from retailer Pumpkin Patch providing a bright spot in mixed trading.

The NZX-50 index gained 9.29 points to 3,547.24 on turnover worth 131.04 million New Zealand dollars (US$85.92m).

Pumpkin Patch rose nine cents to 4.07 dollars after reporting a 16 per cent rise in net profit.

MUMBAI: Share prices closed 0.51 per cent higher, marking five successive days of gains on sustained fund buying ahead of quarterly earnings next month.

The 30-share index closed up 61.71 points at 12,071.30. The Sensex crossed the 12,000 points last week on strong local and foreign fund buying, as inflationary pressures across the region eased.—AFP