HONG KONG, May 14:Asian stocks closed sharply higher on Monday with many benchmarks returning to record levels after strong gains on Wall Street at the end of last week in response to a report suggesting inflationary pressures in the US were easing. The government inflation report had raised the prospect of lower US interest rates and in turn pushed Tokyo up 0.71 percent, Sydney rose 0.76 per cent, while Jakarta gained 1.08 per cent and Bangkok advanced 0.75 per cent.
A relaxation of Chinese investment laws pushed Hong Kong up a whopping 2.50 per cent while Shanghai surged 0.61 per cent on easing China inflation data.
Both markets closed at record highs alongside Singapore, up 1.57 per cent after winning the rights to hold a Formulae One Grand Prix, and Seoul, which rose 0.14 per cent amid some profit taking.
Elsewhere, Mumbai was up 1.23 percent while Kuala Lumpur rose 0.60 per cent and Wellington gained a more modest 0.30 per cent. But politics kept a lid on trade in Taipei where the benchmark closed flat. Manila was closed for a public holiday.
TOKYO: Share prices closed 0.71 per cent higher, rebounding from Friday's sell-off in line with Wall Street's performance and after strong current account figures.
However, stocks slipped back from morning gains amid concern over disappointing corporate results, with shares in Isuzu Motor and NTT plummeting on forecasts of lower profits in the current year.
The Nikkei-225 index gained 124.22 points to 17,677.94. Volume grew to 2.37 billion shares from 2.31 billion Friday.
The market opened stronger, with the Nikkei index gaining more than one percent in morning trade after Japan said its current account surplus rose well beyond expectations in March.
Overall, Japanese shares closed higher due not only to the rally on Wall Street but also the strength of Asian markets ... and news that Chinese investors are now allowed to trade foreign shares, said Masayoshi Yano, market strategist at Tokai Tokyo Securities.
Over the weekend, Beijing announced that institutional investors would now be allowed to invest directly in shares overseas.
Tuesday “is the climax for corporate results and traders prepared themselves to see which direction corporate earnings will take,” he added.
Market players were also waiting for Japan's first quarter growth figures due out Thursday.
Truck maker Isuzu Motor plummeted 42 yen to 58.5 after it forecast a fall in current year to March 2008 earnings after record profits in the past year
HONG KONG: Share prices closed at record highs as fresh funds from China started to flow into the local market after China's move to relax restrictions on mainland banks and funds investing in overseas stocks.
Dealers said buying was across the board in heavy turnover, about a third of which is estimated to be due to fresh cash from mainland Chinese banks and institutional funds.
Under the revised Qualified Domestic Institutional Investor (QDII) scheme, the China Banking Regulatory Commission allows banks to invest up to 50 percent of the net value of their offshore investment in stocks.
SYDNEY: Share prices closed 0.76 per cent higher, recovering ground lost Friday as investor sentiment got a boost from a rebound in US stocks last Friday.
Dealers said the gains, to within sight of the record finish of last week, were largely a technical recovery, helped along by fresh speculation of a merger between two of the world's biggest miners -- BHP Billiton and Rio Tinto.
The benchmark S&P/ASX 200 added 47.7 points at 6,345.1 while the broader All Ordinaries index advanced 49.4 points to settle at 6,346.7.
Bell Securities private client advisor Stuart Smith said the market was simply reversing Friday's losses as sentiment got a lead from the US rally.
The focus was on the major bank and resource stocks, with Rio Tinto climbing after reports in Britain over the weekend reignited takeover speculation from possible suitors such as BHP Billiton.
I don't see much excitement for the rest of the week but it will likely remain steadily firm, Smith said.
BHP Billiton rose 0.28 dollars to 31.28 dollars.
SINGAPORE: Share prices closed at a fresh high with investors encouraged by gains on key regional bourses and Wall Street's rally on Friday.
Dealers said sentiment was also boosted by news that Singapore will host its first Formula One race next year, providing an expected benefit to the hotel and retail sectors.
The Straits Times Index closed up 54.18 points at 3,501.10. Volume was 2.51 billion shares valued at 2.23 billion dollars (1.48 billion US).
KUALA LUMPUR: Share prices closed 0.60 per cent higher in a mixed market as investors locked in profits after an earlier rebound.
The composite index was up 8.14 points at 1.359.59. Volume traded was 1.422 billion shares worth 2.748 billion ringgit (808.2 million dollars).
JAKARTA: Share prices closed 1.08 per cent higher supported by Wall Street's rise Friday and subsequent gains in a number of regional markets.
Among major gainers were Telkom and mining stocks.
The composite index closed up 21.914 points at 2,044.211 on volume of 7.0 billion shares valued at 4.68 trillion rupiah (531.51 million dollars).
WELLINGTON: Share prices rose 0.30 per cent, boosted by sharp gains in Fletcher Building.
The NZX-50 gross index rose 12.55 points to 4,238.94 on turnover worth 102.8 million dollars (75.8 million US). Falls outnumbered rises 55 to 53.
Trading was mixed, said David Price of Forsyth Barr, although he added Fletcher Building's 32 cents to 11.89 dollars was a standout.
Price said his brokerage had upgraded its Fletcher Building valuation to 13.00 dollars, at the top end of brokerage estimates.
MUMBAI: Share prices closed up 1.23 per cent on strong regional trends and gains in banking stocks on confidence a monetary tightening cycle since 2004 is coming to an end.—AFP
