June 30, 2007	Saturday	Jamadi-us-Sani 14, 1428

HONG KONG, June 29: Asian stocks closed mixed on Friday with investors digesting the US federal reserve's latest outlook suggesting the world's mightiest economy may have improved but inflation remained a concern.

The outlook accompanied a fed decision to hold its key interest rate at 5.25 per cent and resulted in choppy trade on Wall Street which ended the day mixed.

However, Asian trade came under additional pressure with Shanghai slumping 2.39 per cent amid a proposal for a special bond issue of up to $200 billion to help fund a new foreign exchange reserve management agency and for an end or reduction of tax on bank interest income.

This raised fears the government will mop-up excess liquidity and divert funds away from equities. It also impacted on other regional markets with Hong Kong down 0.75 per cent, Taipei off 0.11 per cent, Bangkok also shed 0.11 per cent while Seoul fell 0.56 per cent.

Tokyo had a solid day out with a 1.15 per cent gain after a slew of economic data came in within expectations, Sydney was up 0.15 per cent in volatile trade while New Zealand rose 1.05 per cent.

TOKYO: Share prices shot back above the key 18,000 points level, closing up 1.15 per cent as a weaker yen boosted exporters and a batch of economic reports met expectations.

The Nikkei-225 index added 206.09 points to 18,138.36. Turnover was 1.74 billion shares, up from 1.61 billion on Thursday.

The softer trend of the yen encouraged investors to scoop up exporters,whose earnings are expected to benefit, said Hideo Mizutani, chief strategist at Sieg Securities.

The market was also relieved that a series of indicators were within expectations, although deflationary pressures linger with core consumer prices down for a fourth straight month in May, dealers said.

Players are likely to continue buying selected shares which they think are relatively low as the indicators showed that Japan's economy is not in bad shape, said Toshihiko Matsuno, a broker at SMBC Friend Securities.

Investors are now looking ahead to the release Monday of the results of the Bank of Japan's latest quarterly survey of business sentiment.

Isuzu Motors gained 21 yen to 668.

HONG KONG: Share prices closed 0.75 per cent lower as investors cut positions in late trade following another weaker finish on mainland bourses.

Dealers said Chinese bourses were hit by continued concerns that authorities are aiming to steer liquidity away from the equity markets and this was enough to offset the impact of a new trade agreement signed by Hong Kong and China.

Hong Kong and China signed the accord as part of celebrations for the 10th anniversary of Hong Kong's return to Chinese rule on July 1.

The Hang Se ng Index closed down 165.49 points at 21,772.73. Turnover was 68.85 billion Hong Kong (8.8 billion US) dollars.

SYDNEY: Share prices closed 0.15 per cent higher Friday after spending most of the final trading day of the financial year in negative territory.

Dealers said the market settled after a volatile week, with investors content to look back on gains of some 24 per cent over the past fiscal year as stocks continued to deliver very strong returns.

The S&P/ASX 200 rose 9.3 points at 6,274.9. Turnover was 2.65 billion shares worth 13.06 billion dollars (11.05 billion US).

Dealers said the market got a boost in late trade as investors came into the resource and energy stocks.

After a week of extreme volatility we finally saw things settle down, CMC Markets' senior dealer James Foulsham said.

There was no real lead from the US market which was flat overnight but commodities were stronger.For the financial year to end-June, the S&P/ASX 200 added 1,201.0 points or 23.67 per cent after a 18.62 per cent rise in the June 2006 fiscal year.

Macquarie Asset Management private client advisor Joseph Youssef said it was a lacklustre end to the financial year as investors locked in profits amid uncertainty regarding the direction of global markets.

SINGAPORE: Share prices closed 0.28 per cent higher after the US Federal Reserve held its key interest rate unchanged and offered few hints about a future change.

Dealers said property counters pushed the index higher but the gains were pared by quick profit-taking on a lack of fresh incentives.

The Straits Times Index closed up 9.97 points at 3,548.2 on volume of 4.03 billion shares worth 3.07 billion dollars (2.01 billion US).

A local brokerage dealer, who declined to be named, said investors will want to await clearer leads from forthcoming corporate earnings reports before they take fresh positions in the market.

KUALA LUMPUR: Share prices closed 0.27 per cent higher as gains in select blue chips helped the key index to close in positive territory after a volatile session.

The composite index closed up 3.66 points at 1,354.38. Volume traded was 1.053 billion shares worth 2.073 billion ringgit (600.9 million dollars).

The market is undergoing a consolidation phase because of fears of higher interest rates globally due to rising inflationary pressures, Choong Khuat Hock, head of research at investment firm Kumpulan Sentiasa Cemerlang, said.

Telekom Malaysia fell 0.20 to 10.30.

JAKARTA: Share prices closed 1.25 per cent higher led by big-caps and miners with investors optimistic inflation remains under control.

The composite index closed up 26.427 points at 2,139.278 on volume of 2.92 billion shares valued at 3.58 trillion rupiah (395.36 million dollars).

Investors were seen picking up stocks that are likely to post solid second quarter results.

The Central Bureau of Statistics is expected to announce May CPI data on Monday.

Economists polled expect the consumer price index (CPI) in June to have risen between 0.19 per cent and 0.4 per cent from May, and up by 5.77 to 6.0 per cent on an annual basis after gaining 6.01 per cent in May.

“I think the market also gained on window-dressing as we approach the end of the first half,” Yeung said.

Telkom gained 150 rupiah to 5,450.

WELLINGTON: Share prices closed 1.05 per cent higher, as investors reacted positively to stronger markets in Asia and Australia.

The NZX-50 gross index rose 44.92 points to 4,234.29 on turnover worth 195.8 million dollars (150.6 million US).

The market was led higher by Telecom, which rose 11 cents to 4.59 dollars in the wake of Thursday's appointment of BT's Paul Reynolds as chief executive.

Air New Zealand rose six cents to 2.64 dollars, as the market absorbed the placement of a 4.2 per cent stake by Qantas on Wednesday.

Pumpkin Patch fell nine cents to 3.35 dollars and Fisher & Paykel Appliances was down four cents at 3.48.

MUMBAI: Share prices rose 1.01 per cent, on improving global market trends after the US Federal Reserve kept key rates unchanged.

Dealers said sentiment also improved as India's inflation fell to a 14-month low, according to data released on Friday, easing pressure for a further interest rate hike.

The 30-share Sensex index rose 145.94 points to 14,650.51.

Dealers said sentiment was strong after the monthly derivatives contract rolled over smoothly.

India's inflation rate fell to 4.03 per cent for the week ended June 16, in line with India's central bank Reserve Bank of India's medium term target of 4.0-4.5 per cent.

“The tone of the US Fed statement was positive on growth as well as inflation, which aided global market sentiment,” said Manika Premsingh, economist at brokerage Edelweiss Capital.—AFP