December 12, 2006	Tuesday	Ziqa'ad 20, 1427

HONG KONG, Dec 11: Asian stocks closed mostly higher on Monday in line with gains on Wall Street at the end of last week with markets cheering an improved United States employment report.

Benchmarks were also supported by domestic factors with Tokyo rising 0.67 percent on an easing yen, Singapore rose 0.77 per cent after its second casino licence was issued, and Sydney gained 0.81 per cent on support for Telstra.

Elsewhere the prospect of 3G licences being issued in China resulted in Hong Kong rising 0.99 per cent while Shanghai was the standout on the day with a 4.16 per cent surge on support for banks and property developers.

However, Seoul was flat ahead of futures expiries while Mumbai fell 2.9 percent after the central bank raised minimum cash reserve requirements for banks. Taipei fell 0.32 per cent after mixed election results.

Bangkok was closed for a public holiday.

TOKYO: Share prices closed higher, lifted by gains on Wall Street Friday and a further easing of the yen which was seen as positive for exporter earnings.

Dealers said signs of strengthening local consumer confidence provided another boost although the upbeat sentiment was capped by caution ahead of the Bank of Japan's closely watched Tankan survey of business sentiment due on Friday.

The Nikkei-225 climbed 110.17 points or 0.67 percent to 16,527.99. Volume was 1.69 billion shares, down from 2.39 billion on Friday, when volumes were swelled by the special quotation for the settlement of December futures and options contracts.

The market got off to a firm start as dealers took their cue from a stronger Wall Street after a reassuring US employment report.

The market here was helped by the rebound in US stocks last Friday as well as the yen's decline against the dollar, said Yutaka Miura, a senior strategist at Shinko Securities.

The release of consumer confidence data for last month in late trade also encouraged investors after the index rose to 48.7 last month from 48.2 in October, rising for the second straight month, dealers said.

The positive reading for consumer confidence sparked some optimism about the final outcome of the ongoing year-end sales season, said Marusan Securities market analyst Takashi Ushio.

Dealers said investors had also been encouraged as an interest rate rise in Japan next week was seen as less likely after recent soft economic data.

If the central bank decides not to hike rates next week, in view of the the weak economic data of late, this will encourage foreign investors to keep buying Japanese equities, Ushio said.

Toyota Motor closed 100 yen higher at 7,140.

HONG KONG: Share prices closed 0.99 per cent higher led by China Mobile and other telecom stocks on hopes the Chinese authorities will issue third generation (3G) licenses next year.

Dealers said the market was boosted by expectations that the 3G licences will be issued early next year to enable operators to set up infrastructure and provide services in time for the Beijing 2008 Olympic games.

Sentiment was also supported by Wall Street's gains Friday following better-than-expected US employment data, which eased concerns over economic growth in the world's largest economy.

The Hang Seng Index closed up 184.67 points at 18,924.66. Turnover was 44.47 billion Hong Kong dollars (5.7 billion US).

Index heavyweight China Mobile gained 1.05 at 62.85.

Lee said the market was also supported by strong US employment data.

Scores of people were worrying about a slowing of the US economy. But those concerns were dissipated by the stronger-than-expected jobs data, she said.

The US Labour Department announced on Friday that US employers added 132,000 jobs last month, an improvement from the 79,000 generated in October.

SYDNEY: Share prices closed 0.81 per cent higher on Wall Street's lead, with selling in resource and energy stocks capping market gains led by the banks.

Dealers said telecoms giant Telstra supported the market and interest continued in stocks subject to merger and acquisition activity such as Qantas, whose shares jumped ahead of a takeover bid that could be tabled as early as Tuesday.

The SP/ASX 200 rose 43.9 points to 5,469.7. Turnover was 1.43 billion shares worth 4.09 billion dollars (US$3.20 billion).

There's a school of thought that believes the commodity markets have topped out -- that's one view but others are saying there's still a way to go and I'm in that camp, Bell Potter private client advisor Stuart Smith said.

Qantas' shares soared 0.21 dollars to 5.26.

SINGAPORE: Share prices closed 0.77 per cent higher with institutional buying of blue chips lifting the main index.

Dealers said Genting International was the most active stock with 286.7 million shares changing hands after the Malaysian gaming concern won Singapore's second casino licence.

The Straits Times Index gained 22.09 points at 2,887.23 on volume of 1.63 billion shares worth 1.65 billion Singapore dollars (1.07 billion US).

The market is likely to see some consolidation this week but it should continue its run-up afterwards, a dealer at a local brokerage said, pointing out the market was well supported by strong liquidity flows.

Blue chip Singapore Telecommunication lifted the benchmark index today by over 18 points as the stock rose 0.14 to 3.22, given its still attractive valuation compared to its regional peers, dealers said.

KUALA LUMPUR: Share prices closed 0.28 per cent higher as gains in key blue chips offset profit-taking in the broader market.

The composite index closed up 3.11 points at 1,101.70. Volume traded was 1.08 billion shares worth 2.04 billion ringgit (572 million dollars).

“It looks like the local bourse had absorbed the selling pressure well on the back of active mergers and acquisitions as well as the recent strengthening of the ringgit,” said an investment analyst from a local brokerage.

Dealers said Genting and unit Resorts World surged after news that a Genting-led consortium was chosen by the Singapore government to build a casino resort in the city-state's Sentosa Island.

Genting closed at 32.00 ringgit, up 2.75 ringgit, after hitting a high of 35.75 ringgit, while Resorts World gained 1.00 ringgit to 14.40.

JAKARTA: Share prices closed 0.88 per cent lower on profit-taking with index heavyweight Telkom leading the fall.

The composite index closed down 15.612 points at 1,759.673 on volume of 3.68 billion shares worth 3.50 trillion rupiah (385.04 million dollars).

“The profit-taking is quite healthy as it will create fresh buying opportunities, especially in interest rate-sensitive stocks like banks and properties,” Suryo Dipo, head of dealing with Valbury Asia Securities said.

He said Telkom was sold off after investors took the view that the local price needed to adjust downward after the firm's American Depositary Receipts slumped Friday.

Telkom dropped 300 rupiah to 10,000 while rival Indosat fell 100 to 5,600.

WELLINGTON: Share prices closed flat in light trade despite renewed support for leading stock Telecom.

The NZX-50 index ended 1.37 points down at 3,880.08 on turnover worth 91.7 million New Zealand dollars (62 million US).

Telecom rose three cents to 4.66 dollars, following its 15 cent gain Friday.

It seems to be enjoying support and growing demand from overseas investors who are maybe attracted to it as a means to obtain exposure to the appreciating New Zealand dollar, said Barry Lindsay of First NZ Capital.

MUMBAI: Share prices closed nearly three per cent down following a central bank decision at the weekend to raise the amount of cash needed to be set aside as a reserve.

Dealers banks would be forced to raise lending rates after the Reserve Bank of India raised its cash reserve ratio by half a percentage point to 5.50 percent Friday in a moved aimed at steadying inflation.

The 30-share Sensex index closed down 400.06 points to 13,399.43.

The country's largest bank, the government-owned State Bank of India, closed down 110.75 rupees or 8.18 percent to 1,242.75 while leading private sector lender ICICI Bank fell 57.30 rupees or 6.45 percent to 819.40.

Overseas funds sold actively but weakness was seen since last week. We could still see the markets slide by 200-300 points in the coming days before it consolidates, said Hiten Mehta, a fund manager with Fortune Financial Services.

The increase in the cash reserve ratio will drain an estimated 135 billion rupees (three billion dollars) from the banking system which is intended to act as a brake on new loans as lenders will have less cash on hand.—AFP