December 28, 2006	Thursday	Zilhaj 06, 1427

HONG KONG, Dec 27: Asian stocks followed Wall Street's lead and closed mostly higher on Wednesday with Hong Kong, Sydney, Shanghai, Wellington and Jakarta all striking a best ever finish.

The buoyant mood was spread across the region although trade was disrupted particularly in north east Asia after the Taiwan earthquake cut international telecommunications and Internet cables.

However, overall trade seemed to have been largely unaffected with Singapore notching-up a record intraday high and Manila hit a nine-and-a-half year peak while strong gains in Tokyo also lent support around the region. Bangkok and Taipei bucked the trend and closed flat while Seoul succumbed to profit taking as investors squared off ahead of year's end.

TOKYO: Share prices closed up 0.31 per cent, extending gains after Wall Street's overnight post-Christmas rebound.

Dealers said share prices continued to be supported by the strong dollar, which boosts Japanese exporters, and by growing expectations that the central bank will not hike interest rates soon.

The Nikkei-225 gained 53.96 points at 17,223.15. Volume rose to 1.66 billion shares from 1.72 billion shares Tuesday.

HONG KONG: Shares prices jumped 2.10 per cent for a record finish as China financials tracked strong gains on the mainland's markets on hopes that a new tax policy will improve their earnings.

The Hang Seng Index closed up 409.21 points at 19,725.73. Turnover was heavy at 48.47 billion dollars (6.2 billion US).

A draft law on corporate income tax has set a unified tax rate for foreign and domestic firms at 25 per cent, Xinhua news agency reported last week.

China Construction Bank soared 0.44 to 5.06.

Powerchip Semiconductor Corp rose 0.35 dollars at 21.50.

SYDNEY: Share prices closed at new record highs as strong gains in Tokyo and advances by mining stocks lifted investor sentiment.

Dealers said retailers were also in demand on reports of solid Christmas sales, helped by a record low unemployment rate and easing worries about rising interest rates, while volume was thin with many investors on holiday.

SINGAPORE: Share prices closed 0.64 per cent higher, mirroring similar gains in the region on a bullish investor mood.

The main Straits Times Index rose 18.72 points to close at 2,961.25 after scaling a new intraday high of 2,971.53. Volume totalled 1.38 billion shares worth 842 million Singapore dollars (547 million US).

Investors' confidence received a boost from gains posted in the region's other markets particularly in Hong Kong where the Hang Seng Index closed at a new record high of 19,725.73 points.

KUALA LUMPUR: Share prices closed 0.46 per cent higher as selected blue chips and lower liners attracted interest amid strong gains on regional markets.

The composite index rose 5.07 points to 1,083.22. Trading volume reached 687.82 million shares valued at 798.54 million ringgit (224 million dollars).

The positive buzz today was driven by the anticipation that the market may see a year-end rally,” said Phua Kwee Hock of SJ Securities.

JAKARTA: Share prices closed 1.08 per cent higher at a fresh record high, supported by a firmer rupiah, Wall Street's overnight rise and some year-end window dressing.

Dealers noted that gains in telecom, plantation and mining stocks provided key support.

The composite index closed up 19.285 points at 1,803.264, topping the previous record of 1,792.163 points on December 15. Volume was 2.8 billion shares valued at 1.9 trillion rupiah (210.29 million dollars).

WELLINGTON: Share prices closed 0.32 per cent higher, reigniting a record run with strength seen in a variety of stocks.

Dealers said the top-50 had retreated from a record-breaking run in Friday's half-day session before the break. But the mood changed when trading resumed, despite top stock Telecom falling two cents to 4.79.

MUMBAI: Share prices closed 1.1 per cent higher, the fourth straight gain, as mutual funds bought blue chip companies to round out portfolios at the end of the year.

Dealers said however that the surge in blue chip buying may come to an end Thursday with the expiry of December futures contracts to buy shares on margin payments.—AFP