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HONG KONG, March 19: Asian stocks closed sharply higher Monday, shrugging off losses on Wall Street and another Chinese interest rate hike as investors adjusted positions ahead of US and Japanese central bank meetings, dealers said.
They said the Chinese rate increase, the third in less than a year aimed at slowing growth, was widely expected after a series of strong economic data.
Far from denting enthusiasm, however, mainland investors looked instead at the likely inflow of funds into the yuan as a result and put on nearly 3.0 per cent, showing no fear the authorities will return with tougher measures.
TOKYO: Japanese stocks closed up 1.59 per cent, ending above the key 17,000 points level for the first time in almost a week as investor confidence gradually returns after the recent rout, dealers said.
The Tokyo Stock Exchange's benchmark Nikkei-225 index of leading shares gained 265.40 points to 17,009.55.
HONG KONG: Hong Kong share prices closed 1.65 per cent higher led by China Mobile and select blue chips on expectations that they will post strong 2006 results this week, dealers said.
SYDNEY: Australian share prices closed 0.40 per cent higher as merger and acquisition activity in the financial sector dominated trade, dealers said.
SINGAPORE: Singapore share prices closed 1.46 per cent higher, led by property stocks as investors shrugged off market jitters over a build-up in US inflation and another Chinese rate hike, dealers said.
KUALA LUMPUR: Malaysian share prices closed 0.85 per cent higher, led by gains in conglomerate Genting after it announced a subsidiary will sell its paper and packaging business, dealers said.
WELLINGTON: New Zealand share prices closed 0.31 per cent higher in light trade as investors took heart from gains in the Australian market, dealers said.
The benchmark NZX-50 index rose 12.71 points to 4,050.31 on turnover of 96.0 million dollars (67 million US).
The market remained cautious after two rounds of heavy losses this month and amid fresh questions over the direction of local interest rates, following the recent quarter percentage point rise, he said.
Telecom rose one cent to 4.63 dollars as investors waited for news on the sale of the yellow pages directories business and the appointment of a new chief executive.—AFP
