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HONG KONG, Oct 20: Asian stocks followed the record performance set by Wall Street overnight and closed solidly higher on Friday with many markets nearing all-time best or multi-year highs.
Investors around the region cheered as the Dow Jones in New York closed above the 12,000 mark for the time ever and this helped Singapore and Jakarta to close at a record high and Manila notched-up its best finish since 1999.
Sydney and Hong Kong were also higher and trading just shy of record levels while Seoul, Tokyo and Taipei shrugged off the lingering impact of North Korea's nuclear test and made strong gains.
However, Kuala Lumpur was flat and Mumbai slightly lower while trading near its record high after profit taking set in ahead of national holidays.
TOKYO: Share prices ended in positive territory after Wall Street's Dow Jones index closed at a record high above 12,000 points and on hopes of upbeat local earnings.
Bucking the trend, Sony fell after the electronics giant's profit warning but dealers said the overall market impact was limited as investors were confident that other companies would not be dragged down.
The Nikkei-225 index gained 100.27 points to 16,651.63. Volume rose slightly to 1.55 billion shares from 1.53 billion Thursday.
“Basically, market sentiment remains solid, supported by expectations for improved earnings at Japanese firms,” said Hideo Mizutani, a chief strategist at Sieg Securities.
Major Japanese companies such as Sharp, Honda Motor, Sony and Nissan Motor will release their first half results next week.
Some analysts warned, however, that shares would not necessarily rise in response to positive first-half results.
“Since some other technology stocks have already advanced on (upbeat) expectations, some investors feel that those stocks may become the victim of 'buy on the rumor, and sell on the fact' (strategies),” said Shinko Securities market analyst Yutaka Miura said.
Analysts said some caution also surfaced ahead of next week's Federal Reserve interest rate meeting, limiting overall gains.
Sony dropped 40 yen or 0.8 per cent to 4,750 after forecasting sharply lower earnings for the year ending March 2007 because of the huge costs arising from the global recall of its lithium-ion batteries for laptop computers.
HONG KONG: Share prices closed 0.70 per cent higher as investors added blue chip property and financial stocks to their portfolios after the Dow Jones Industrial Average chalked up another record finish.
Dealers said sentiment was supported by the view that the US economic and interest rate outlook is positive and the market's prospect remains sound as reflected by the frenzied response to Industrial and Commercial Bank of China's huge initial public offering.
The Hang Seng Index closed up 126.58 points at 18,113.55. Turnover was heavy at 37.4 billion Hong Kong dollars (4.8 billion US).
Kenny Tang, associate director at Tung Tai Securities, said trade was “supported by the strength of the US markets.””Market trend is expected to remain strong next week after the HSI breached the 18,100 resistance level (intraday),” he said.
He said interest in property counters was strong amid a generally positive outlook for interest rates, while heavyweight stocks such as China Mobile and HSBC were also obvious favourites.
China Mobile closed up 0.45 at 59.10 and HSBC was up 0.80 at 147.20.
Dealers said the overwhelming response to ICBC's IPO and the fact that the market remains steady even as the benchmark index hovers around the 18,000 level reflects the positive mood of investors.
They said the focus next week will be on ICBC's listing and expiry of October futures contracts, both due on Friday.
SHANGHAI: Share prices closed slightly lower, slipping 0.10 per cent as investors took some quick profits in the airlines and property developers while looking ahead to next week's massive listing of Industrial and Commercial Bank of China.
Dealers said that with the market at 5-year highs on the Shanghai Composite Index, further gains are harder to come by but ICBC's listing next Friday should give a strong boost.
The nation's largest lender attracted massive demand here and in Hong Kong for its Initial Public Offering (IPO), tying up huge amounts of money which may now be freed up as the IPO shares are allocated.
The Shanghai A-share Index fell 1.89 points to 1,880.67 on turnover of 23.33 billion yuan (2.95 billion dollars) and the Shenzhen A-share Index was down 1.68 points or 0.36 per cent at 466.80 on turnover of 13.90 billion yuan. Air China fell 0.07 yuan to 3.53.
SYDNEY: Share prices closed 0.95 per cent higher, boosted by Wall Street's record finish above 12,000 points overnight and continued takeover activity in the media sector.
Dealers said firmer resources provided additional support but it was the media stocks which grabbed the limelight after News Corp took a 7.5 per cent stake in Fairfax, seen as one of the most likely candidates for a takeover following the relaxation of industry ownership laws.
The SP/ASX 200 advanced 50.1 points to the day's high of 5,335.4. Turnover was 1.54 billion shares worth 4.74 billion dollars (3.60 billion US).
CMC Markets' senior dealer James Foulsham said Wall Street provided the offshore lead while continuing speculation about takeover and merger activity, especially in the media sector, buoyed interest overall.
“The market is still abuzz with takeover speculation and there were broad gains for most sectors in the market,” he said, adding: “Media stocks have once again been a focus.”Fairfax rose 0.31 dollars or 6.54 per cent to end at 5.05 dollars but News Corp shed 0.06 to 28.86 and its non-voting stock lost 0.07 to 27.75.
SINGAPORE: Share prices closed at another new record, following the lead of the blue-chip Dow Jones Industrial Average in the United States.
Dealers noted that investors targeted a number of blue chips on hopes they will report strong quarterly earnings in the current third quarter results season.
The Straits Times Index ended the day up 18.85 points or 0.71 per cent at 2,686.43, breaking Monday's record when the index finished at 2,669.55, after also touching a new intraday peak of 2,686.89.
The previous intra-day high came last Monday at 2,685.51. Volume on the Straits Times Index was 1.26 billion shares worth 1.26 billion Singapore dollars (802 million US).
“This (rise) is mainly because Wall Street held up quite well yesterday despite October 19 being the anniversary of a stockmarket crash in the US,” a dealer with a local brokerage said, referring to the 1987 global crash.
Further gains will likely hinge on the outcome of results due out next week from a number of blue chip firms including Keppel Corporation, Singapore Airlines and DBS Group Holdings, the dealer said. better-than-expected third quarter results. Chartered swung to a net profit of 24.43 million US dollars from a year-earlier loss of 34.51 million.
KUALA LUMPUR: Share prices closed only marginally higher as the market wound down for next week's three-day public holiday.
Dealers said the market has discounted Wall Street's record-breaking run, as well as positive expectations for an easing of inflation after September inflation data held steady at 3.3 per cent year-on-year.
But the benchmark index, though confined to a narrow range, has reversed its early negative bias and edged slightly higher toward the close with help from gains in plantation stocks, they added.
The composite index closed up 0.42 points to 979.19. Trading volume was 602.36 million shares valued at 856.78 million ringgit (167 million dollars).
Dealers said investors will resume monitoring Wall Street for leads when the market re-opens on Thursday.
The local bourse will be closed for three days from October 23 to 25 as the nation celebrates the Hindu festival of Deepavali, and end of the Muslim fasting month of Ramadan.
Tenaga was down 0.05 ringgit at 9.95.
BANGKOK: Share prices closed at a five-month high as foreign investors chased gains in blue-chip stocks after Wall Street finished above 12,000 points for the first time.
Dealers said a strong performance across the region also helped boost the Thai market. The composite index rose 4.11 points to 724.98 on turnover of 2.4 billion shares worth 13.6 billion baht (366 million dollars).
“Foreign investors were really coming back to the market as their sentiment was buoyed by a record close on Wall Street,” said Sukhbir Khanijoh, a senior economist at Kasikorn Securities.
The US blue-chip Dow Jones Industrial Average index on Thursday finished above 12,000 points for the first time as major US corporations announced robust earnings results thanks to falling oil prices.
“The Thai market also rose in line with gains in the regional market following the US market close,” Sukhbir said. Thailand's largest energy firm PTT rose 4.00 to 222.00 baht.
JAKARTA: Share prices closed 0.27 per cent firmer with late buying in selected major stocks pushing the index to a new record high.
Dealers said some investors came back into the market in the afternoon to pick up stocks which have released positive third-quarter results.
The composite index closed up 4.251 points at 1,572.846 on volume of 2.80 billion shares valued at 1.52 trillion rupiah (166 million dollars).
Evergreen Capital analyst Edwin Sebayang said investors appeared to be reluctant to take positions in the morning session ahead of the long holiday.
“However, given the gains in most regional markets, and hopes of improved third-quarter results, some investors decided to re-enter the market in afternoon session,” Sebayang said.
He said investors were optimistic there should be no major negative external factors that could put pressure on the market when it reopens on Oct 30. The market will be closed for Eid ul-Fitri holiday next week. Perusahaan Gas Negara was up 100 rupiah at 11,100.
WELLINGTON: Share prices closed 0.14 per cent lower following a sharp fall in Fletcher Building after its strong recent rally.
The NZX-50 gross index fell 4.96 points to 3,668.26 on turnover worth 167.1 million dollars (111.6 million US).
Fletcher Building, which has been driven higher on takeover speculation, fell 17 cents to 9.48 dollars.
Speculation in the building materials company has been fuelled by an unknown buyer building a stake in the company.
“I think it's a case of watch this space,” said Grant Williamson, a partner with Hamilton, Hindin, Greene, said.
“Where there's smoke, there's normally fire so I think brokers are still thinking that at some stage, something is going to happen there.”Market leader Telecom rose three cents to 4.38 dollars.
MUMBAI: Share prices fell for a fourth straight session in volatile trade, closing down 0.11 per cent as investors took profits.
Trading activity was hectic in private sector Tata Steel Friday after Anglo-Dutch steelmaker Corus Group accepted a 8.07 billion dollar) takeover bid from Tata Steel to create what will be the world's fifth-largest steelmaker.
Tata Steel climbed 3.8 per cent to a day's high of 521 rupees before rectracing on profit-taking to close at 507.8 rupees, up 1.23 per cent or 6.15 rupees.
The 30-share Sensex index fell 14.19 points to 12,709.4.
Dealers said index heavyweights came under selling pressure towards the close.
“We saw strong gains largely led by news events such as the Tata Steel deal. The markets are obviously facing pressure close to the crucial 13,000 level,” said R. Balakrishnan, director at Parallex Consultancy Services Ltd.
The stock market will be open for trade Saturday for a special ceremonial session marking the Hindu holiday Diwali.—AFP
