HONG KONG, May 28: Asian stocks closed higher on Monday but gains were less than convincing as investors again consolidated amid fears mainland China markets may have gone too far and are due for a major correction.
However, none of those jitters were on display in Shanghai where investors shrugged off any talk of a further tightening in national monetary policy and drove the benchmark up 2.21 per cent for another record finish.
Gains on Wall Street at the end of last week had underpinned early gains in markets elsewhere around the region but as Shanghai continued its surge into unchartered territory profit taking emerged alongside another bout of nerves.
This was particularly reflected in Hong Kong, Sydney, Taipei, Wellington and Manila with all showing signs of uncertainty and closing little changed.
The mood wasn't helped with a public holiday in the United States coming up which will also leave the markets bereft of a major trading lead.
TOKYO: Share prices closed 0.61 per cent higher, recovering some of Friday's steep losses in line with gains on the US and Chinese stock markets.
Dealers said the recent weakness of the yen also lent support, although the rebound was limited because fewer foreign investors were active due to the Memorial Day holiday in the United States.
The Nikkei-225 index rose 106.38 points to 17,587.59. Volume was 1.57 billion shares, down from 1.89 billion on Friday.
“After the sharp losses on Friday, Tokyo shares started posting gains as the rebound on US stock markets gave investors some comfort,” said Hideo Mizutani, chief strategist at Sieg Securities.
Also, steady Chinese markets supported investor sentiment here, he added.
Chinese share prices closed more than two percent higher as investors continued to shrug off warnings about a possible sharp correction.
HONG KONG: Share prices closed little changed as profit-taking in Chinese financial counters and certain blue chips in the afternoon pared gains from the early session.
Dealers said investors were getting increasingly worried over further credit tightening measures on the mainland after China's main 'A' share index hit a new record high in Shanghai Monday.
They added that the futures contracts expiration on Wednesday and a public holiday in the US Monday also weighed on sentiment.
The Hang Seng Index closed up 9.10 points at 20,529.76. Turnover was 54.45 billion Hong Kong dollars (7.0 billion US).
SYDNEY: Share prices closed flat after a volatile session, with limited selling concentrated in the banking and financial sectors after earlier gains.
Dealers said resource stocks provided support on the downside, limiting the losses after a rebound in base metal prices on Friday.
The S&P/ASX 200 slipped 1.4 points percent at 6,251.4. Turnover was 1.5 billion shares worth 4.8 billion dollars (4.0 billion US).
Macquarie Equities client adviser David Halliday said strong commodity prices and a positive close on Wall Street Friday gave an initial spur to the market.
The resources have held up, and in terms of things to buy they look like the cheapest and best-value stocks in the market at the moment but as for everything else, it's not so easy, Halliday said.
SINGAPORE: Share prices closed 0.77 per cent higher after Wall Street's gains last week prompted investors to target selected blue chips.
Dealers said interest in stocks involved in merger and acquisition activity supported the rise.
The Straits Times Index (STI) added 26.74 points to 3,513.37 on volume of 2.52 billion shares worth 1.73 billion Singapore dollars (1.14 billion US).
“The market is likely to consolidate, given that this is a holiday-shortened week,” DBS Vickers Securities said in a client note.
CIMB-GK Research said the index may ease to 3,310-3,370 points in coming weeks as investors take profit from recent record gains.
Neptune Orient Lines added 0.34 to 4.38.
KUALA LUMPUR: Share prices closed 0.52 per cent higher, supported by gains in oil and gas stocks over rising exploration and production activities.
Dealers said sentiment was boosted by news the construction of a seven billion dollar pipeline across northern Malaysia had been formalised.
The composite index gained 6.91 points to 1,345.99. Volume traded was 660.481 million shares worth 1.276 billion ringgit (376.29 million dollars).
Teoh Cheng Guan, head of retail research at Kenanga Investment Bank, said the broader market was mixed, but buying in select blue-chips supported the key index in positive territory.
JAKARTA: Share prices closed 0.79 per cent higher, on a technical rebound led by large caps, including banks.
Dealers said noodle maker Indofood Sukses Makmur also finished higher after news its plantation arm is planning to acquire a majority stake in crude palm oil firm London Sumatra Indonesia.
The composite index closed up 16.324 points at 2,076.758 on volume of 5.64 billion shares worth 4.06 trillion rupiah (464.11 million dollars).
Indofood, through its Singapore-listed unit Indofood Agri Resources, has put forward a proposal to buy an initial stake of 64.4 percent in Lonsum and then make a tender offer for the rest.
Bank Mandiri rose 50 rupiah to 3,150.
WELLINGTON: Share prices closed barely changed as the market continued to consolidate sharp gains made last week.
The NZX-50 gross index fell 0.84 points to 4,304.41 on turnover worth 92.9 million dollars (67.5 million US).
Market leader Telecom was down five cents at 4.86 dollars after it going ex a seven cent dividend.
Fletcher Building fell seven cents to 13.03 dollars, following its jump last week after announcing a 700 million US dollar purchase of US-based Formica Corp.
Contact Energy fell eight cents to 8.80 dollars.
MUMBAI: Share prices gained 0.41 per cent as local funds bought heavily and are expected to sustain the current rally this week.
Dealers said funds snapped up blue chips, led by banking shares.
The 30-share Sensex rose 59.44 points to 14,397.89.
We expect the markets to hit a new record in the coming days, said Manoj Kakaiya, dealer with brokerage ULJK Securities.
