HONG KONG, July 3: Asian stocks closed sharply higher on Tuesday after a rally on Wall Street overnight was triggered by improved US economic data and takeover talk.
A better-than-expected report on the manufacturing sector had helped the Dow Jones to a 0.95 percent rise with falling Treasury yields and new mergers also convincing investors to look past higher energy prices.
That trend carried over into Asia trade where Hong Kong, Jakarta, Mumbai and Manila all closed at record highs.
Taipei was up 0.63 per cent at a fresh seven year high while the possibility of a ratings upgrade contributed to 1.93 surge in Seoul.
Bangkok soared 2.63 per cent, to its highest level since the outbreak of the Asian financial crisis a decade ago. Sydney was up 0.57 percent while gains in Wellington were limited to 0.14 per cent.
Elsewhere, Kuala Lumpur was up 0.64 percent, Singapore rose 0.54 per cent and Shanghai rose 1.65 percent as fears over a liquidity crunch eased. However, the resignation of a defence minister resulted in Tokyo closing flat.
Among the region's smaller markets Ho Chi Minh City shed 1.7 per cent with liquidity drying up after recent share issues.
TOKYO: Share prices closed flat as political worries weighed on sentiment in the absence of any positive domestic leads.
Dealers said news of the resignation of Japan's defense minister undercut sentiment to some extent as it gave rise to political uncertainty ahead of the upper house elections later this month.
Defense Minister Fumio Kyuma resigned over remarks suggesting that the US atomic bombings of Japan were the inevitable way to end the World War II.
The Nikkei-225 index closed up 3.60 points at 18,149.90. Volume was 1.77 billion shares, unchanged from Monday.
Investors may refrain from actively buying stocks as political uncertainties were reinforced” by the sudden resignation of Kyuma, said Fumiyuki Nakanishi, chief strategist at SMBC Friend Securities.
Shares of Showa Shell Sekiyu KK rose 21 yen or 1.4 percent to 1,530 on the back of a report that the Japanese oil refining unit of Royal Dutch Shell is expected to book higher-than-expected earnings.
Other oil shares also gained after New York crude oil futures rose.
Nippon Oil rose 6 yen to 1,157 yen.
HONG KONG: Share prices hit a new record high, with the benchmark closing above 22,000 points for the first time, buoyed by strong showing on Wall Street and firmer China markets.
Dealers said buying was also spurred by corporate announcements, including China Shenhua Energy's mainland listing plans and Chalco's acquisition of Baotou Aluminium.
Fund inflows, attributed mainly to China's expanded qualified domestic institutional investor (QDII) program, helped boost market activity.
The Hang Seng Index closed up 378.41 points at 22,151.14. Turnover was 81.72 billion Hong Kong dollars (10.48 billion US).
“Overall investor sentiment was bullish and this enabled the market to close above 22,000 points for the first time today,” said Alex Wong, asset management manager at Ample Capital.
A combination of factors” helped investors take a very bullish stance, he said, citing firmer overseas markets and a positive corporate news flow.
SINGAPORE: Share prices closed 0.54 per cent higher on selective buying of blue chips following Wall Street's strong gains.
Dealers said property-related counters, especially in construction, also supported the index.
The Straits Times Index gained 19.09 points to 3,569.43 on volume of 3.98 billion shares worth 2.65 billion dollars (1.74 billion US).
City Developments advanced 0.40 to 17.50.
KUALA LUMPUR: Share prices closed 0.64 per cent higher with heavy buying in property and construction stocks following Wall Street's overnight rally.
The composite index gained 8.77 points to 1,373.14. Volume reached 1.23 billion shares worth 2.29 billion ringgit (667.6 million dollars.
The local bourse got a real boost today from Wall Street with theme plays evident in sectors like construction, property and consumer, said Cheah King Yoong, head of research at SJ Securities.
JAKARTA: Share prices closed 0.98 per cent up, at a record high, boosted by hopes the central bank will cut interest rates this week in response to tame inflation data.
The composite index closed up 21.299 points at 2,189.119. Volume was 3.59 billion shares worth 3.75 trillion rupiah (415.51 million dollars).
MUMBAI: Share prices closed at a new record high as concerns of a hike in interest rates eased.
Dealers said buying sentiment improved on the waning of global and local rate concerns after the US Federal Reserve kept key rates unchanged last week and Indian inflation slipped.
The 30-share Sensex index rose 142.25 points to 14,806.51.—AFP