December 14, 2006	Thursday	Ziqa'ad 22, 1427

HONG KONG, Dec 13: Asian stocks closed mixed on Wednesday with investors consolidating following falls on Wall Street overnight and a decision by the US Federal Reserve to leave interest rates unchanged.

However, comments by the Fed that economic growth has slowed over the course of the year, partly reflecting a substantial cooling of the housing market had rattled some investors in the US and Asia.

This resulted in limited profit taking which capped gains and sent many of the region's benchmarks into negative territory with the outlook for the US economy -- and whether or not a soft landing is at hand -- remaining uncertain.

Tokyo, the region's largest market ignored the anxiety and rose 0.33 per cent, Wellington climbed 0.45 per cent to another record close, Sydney was less optimistic with a 0.22 per cent gain, and Shanghai was up 0.21 per cent.

TOKYO: Share prices closed higher for a third straight session at a new six-week high, recovering from early losses as investors set aside interest rate jitters.

The Nikkei-225 gained 55.15 points or 0.33 per cent to 16,692.93. Volume dropped to 1.61 billion shares from 1.84 billion on Tuesday.

Investors were also cautious ahead of the Bank of Japan's quarterly Tankan business survey due Friday which is expected to have an important bearing on when the central bank raises interest rates from 0.25 per cent.

Since there were no surprises at the (Fed) meeting and as we brace for Friday's Tankan, there were no convincing leads that could drive the market in either direction, Nozomi Securities market analyst Akihiro Shiroeda said.

Tokyo stocks spent most of the day in negative territory, taking their cue from Wall Street's weakness overnight after the Fed left open the possibility that interest rates may rise in the future if inflation accelerates.

HONG KONG: Share prices closed 1.0 per cent lower after the US Federal Reserve warned yet again of inflation risks despite acknowledging that the economy has weakened.

The Fed's comments, which accompanied its widely expected decision to keep its benchmark interest rate unchanged at 5.25 per cent, suggested that it is leaving the door open for further rate hikes while disappointing investors who had been hoping for signals for a rate cut.

Dealers said selling was seen across the board with some fund managers seeking to lock in profits before taking their Christmas holiday break.

The Hang Seng Index closed down 188.98 points at 18,718.19. Turnover was 40.76 billion Hong Kong dollars (5.23 billion US).

The market saw huge profit-taking pressure in all kinds of stocks.

SYDNEY: Share prices rose 0.27 per cent supported by continued takeover and merger activity as Qantas rejected an initial bid for the airline.

Dealers said resource stocks were mixed, with investors trying to gauge the latest statement from the US Federal Reserve which pointed to both a slowing economy and continued concerns over inflation.

The SP/ASX 200 rose 14.6 points to 5,488.2. A total of 1.54 billion shares worth 4.95 billion dollars (3.9 billion US) were traded.

Qantas closed down 0.14 dollars or 2.67 per cent to finish at 5.09 after earlier trading to a low of 4.93, while Macquarie Bank shed 0.98 or 1.31 per cent to 73.75.

SINGAPORE: Share prices closed 0.33 per cent lower as investors continued to consolidate positions in the wake of Wall Street's overnight losses.

Dealers said indications of possible future interest hikes weighed on market sentiment, although the Federal Reserve kept its key fed funds rate pegged at 5.25 per cent.

The Straits Times Index shed 9.66 points to 2,884.15 on volume of 1.64 billion shares worth 1.41 billion Singapore dollars (915 US dollars).

KUALA LUMPUR: Share prices closed 0.81 per cent lower as investors continued to lock in profits, with construction stocks, among the biggest gainers in recent few weeks, leading falls.

Dealers said investors were cutting positions ahead of the upcoming Christmas and New Year holidays.

The composite index closed down 8.82 points at 1,079.60 with turnover of 955.48 million shares worth 1.69 billion ringgit (482.8 million dollars).

Investors were taking profit... there was nothing to be alarmed about,”said a fund manager from a local asset management firm.

JAKARTA: Share prices closed marginally lower, little changed in the absence of strong cues.

Dealers said profit-taking in selected blue chips kept the index just inside negative territory for a fifth straight day.

The composite index closed down 0.780 points at 1,753.798. Volume was 2.34 billion shares worth 2.47 trillion rupiah (272.33 million dollars).

WELLINGTON: Share prices continued their stellar run, rising a further 0.45 per cent to a fresh record close despite a boardroom bust up in prominent power company Vector.

The NZX-50 index gained 17.86 points to 3,945.98 on turnover worth 146.32 million New Zealand dollars (100.36 million US).

Although most stocks were positive, there were two major falls.

Number two stock Fletcher Building retreated 24 cents to 10.45 dollars, a day after posting a 43 cent rise.

MUMBAI: Share prices closed up 1.43 per cent as domestic funds bought blue-chip shares, snapping three days of sharp losses linked to fears of an economic slowdown.

The 30-share benchmark BSE Sensitive index gained 186.32 points to 13,181.34 after falling below 13,000 points for the first time in a month on Tuesday.

This was a relief rally with strong support seen in late afternoon trade.—AFP