July 06, 2007	Friday	Jamadi-us-Sani 20, 1428

HONG KONG, July 5: Asian stocks closed mostly higher on Thursday with investors extending the recent rally on upbeat sentiment for the region's economies, however, Shanghai stood out by registering a stunning fall.

Shanghai tumbled 5.25 per cent with fears of a liquidity crunch gathering pace as Beijing announced a special bond issue to soak up excess cash and cool China's runaway equity markets and economy.

Another measure, that weighed on Chinese sentiment but supported benchmarks elsewhere, will allow domestic funds to invest more offshore.

This helped Hong Kong to post another record high, up 0.16 per cent, while Taipei rose 0.88 per cent and Seoul gained 0.51 per cent, also a record high, with investors buoyed by improved consumer confidence.

TOKYO: Share prices rose for a sixth straight day as investors took an upbeat view of the economic outlook and as a softer yen helped to shore up exporters.

But dealers said trading was subdued in the absence of any lead overnight from Wall Street which was closed for the Independence Day holiday.

The Nikkei-225 index rose 52.76 points to 18,221.48. Turnover increased to 1.67 billion shares from 1.52 billion on Wednesday.

Investor expectations for higher share prices remain solid, given the (positive) view of growth in greater Asia and the rest of the world economy, said Hiroichi Nishi, an equities manager at Nikko Cordial Securities.

HONG KONG: Share prices closed 0.16 per cent higher as reports Beijing will allow mainland financial groups to increase their investment overseas triggered hopes of more fund inflows into Hong Kong.

China's state media said the State Administration of Foreign Exchange would raise investment quotas under the Qualified Domestic Institutional Investor programme, which allows overseas investment by some institutions. The Hang Seng Index closed up 34.44 points at 22,252.99. Turnover was 85.13 billion Hong Kong dollars (11 billion US).

SYDNEY: Share prices closed 1.01 per cent higher after investors snapped up energy and resources stocks following a rise in metals and oil overnight.

Dealers said even a lack of leads from Wall Street, which was closed Wednesday for a public holiday, failed to dent sentiment.

The S&P/ASX 200 ended up 63.7 points at 6,362.3. Turnover was 1.55 billion shares worth 5.65 billion dollars (4.24 billion US).

Banks were well supported but mining companies provided the main impetus upwards as metals prices rose, Macquarie private client adviser Helen Spencer said.

SINGAPORE: Share prices closed flat after profit-taking emerged in blue chips during afternoon trade in response to recent gains.

Dealers said buyers were scarce in the absence of new leads following Wednesday's closure of US markets for the Independence Day holiday.

The Straits Times Index fell 3.17 points to 3,551.68 on 4.47 billion shares traded with a value of 2.52 billion Singapore dollars (1.66 billion US).

KUALA LUMPUR: Share prices closed 0.56 per cent lower on profit-taking after four days of gains and amid a lack of fresh leads, dealers said.

The composite index fell 7.84 points to 1,369.30 on volume of 1.21 billion shares worth 2.2 billion ringgit (637.7 million dollars).

JAKARTA: Share prices closed 1.13 per cent higher, with the main index finishing at a new record for the fourth straight day.

Dealers said the market welcomed Bank Indonesia's move cutting its benchmark interest rate by 25 basis points to 8.25 per cent following tame inflation data in June. Although the rate cut had been widely expected, the market still reacted positively to the news.

The composite index closed up 24.826 points at 2,220.931. Volume was 4.89 billion shares worth 3.67 trillion rupiah (407.32 million dollars).

WELLINGTON: Share prices closed little changed in the absence of leads to drive the market. The NZX-50 gross index fell 3.56 points to 4,236.70. Turnover was worth 97.0 million dollars (75.8 million US).

The market's actually flat, which is where it's been for most of the day.Very little out there to drive the blue chips, said Tom Bliss of Forsyth Barr. Telecom rose four cents to 4.66 dollars.

MUMBAI: Share prices closed 0.12 per cent lower, snapping five days of gains as investors locked in profits after a sharp run-up this week.

The 30-share benchmark Sensex index fell 18.35 points to 14,861.89. The markets were distinctly choppy with investors ... taking profits in index stocks. This volatility could continue for a few days, said Atul Hatwar, dealer at brokerage Crosseas Securities.

Software stocks fell on concerns about a strong rupee. Software firms in India bill many of their clients in dollars and a weaker dollar hits earnings.—AFP