HONG KONG, Sept 13: Asian stocks closed barely higher on Thursday as investors held to the sidelines after oil struck a record high, and ahead of a probable cut in United States interest rates.

Investors are convinced a cut will be announced after the Federal Reserve meets on September 18, and that an easing in US monetary policy is required to restore some confidence in the US economy.

The international finance system has faced testing times over the last six weeks with the US subprime mortgage sector in crisis and raising the prospect of a credit crunch which would be eased by an interest rate cut.

TOKYO: Japanese share prices closed mixed as investors took a cautious stance amid uncertainties about the health of the US economy and the domestic political situation.

The market was also watching the race to replace Prime Minister Shinzo Abe, who announced his resignation Wednesday after a plunge in his popularity.

The Nikkei-225 index rose 23.59 points to 15,821.19. Turnover dropped to 1.56 billion shares from 1.74 billion on Wednesday.

HONG KONG: Hong Kong share prices closed sharply 0.93 per cent up, with the benchmark index hitting a new record, as property stocks benefited from an expected cut in US interest rates next week.

Aluminum Corp of China (Chalco) finished sharply lower after Alcoa Inc sold its near 7.0 per cent stake in the company, and on news that the Chinese firm has cut its alumina spot price by 10 per cent to reflect anticipated demand.

The Hang Seng Index closed up 226.88 points at a record 24,537.02. Turnover was 109.21 billion Hong Kong dollars (14.03 billion US).

SYDNEY: Australian share prices rose 0.2 per cent on expectations the United States will cut the cost of borrowing next week to shore up economic growth.

The S&P/ASX 200 closed up 10.3 points at 6,230.6 on turnover of 1.85 billion shares worth 5.15 billion dollars (4.32 billion US).

SINGAPORE: Share prices closed little changed amid continued worries over the United States economy after Wall Street’s lacklustre performance overnight.

The Straits Times Index fell 1.69 points to 3,504.40. Volume totalled 2.36 billion shares worth 1.98 billion Singapore dollars (1.30 billion US).

KUALA LUMPUR: Malaysian share prices closed 0.2 per cent lower in thin trade after global crude oil prices surged to a record high.

The composite index closed down 1.92 points at 1,284.02 on volume of 819.653 million shares valued at 1.318 billion ringgit (379 million dollars).

JAKARTA: Indonesian share prices closed 0.6 per cent higher amid thin turnover, with late buying in the mining and cement sectors and a firmer rupiah further lifting sentiment.

The composite index closed up 12.82 points at 2,222.75. Volume was 3.88 billion shares valued at 2.33 trillion rupiah (247.79 million dollars).

WELLINGTON: New Zealand share prices closed little changed in light trading in the absence of strong leads.

The NZX-50 index fell 0.59 points to close at 4,142.43 on light turnover worth 64.5 million dollars (45.8 million US).

Reserve Bank governor Alan Bollard left interest rates unchanged at 8.25 per cent Thursday and indicated they would remain around current levels for a considerable period.

MUMBAI: Indian share prices rose 0.7 per cent on optimism that the US Federal Reserve would cut interest rates at its next policy review.

The 30-share Sensex rose 109.08 points to 15,614.44.

Local fund buying was seen, but the markets will track the US Fed meet next week, said Naresh Garg, chief investment officer with Sahara Mutual fund.—AFP