Another Wall Street rally boosts Asian stock markets
Another Wall Street rally boosts Asian stock markets
HONG KONG (AP): Most Asian stock markets ended the week higher Friday on the back of another record rally overnight on Wall Street.
In Jakarta, the key index surged more than 5 percent on active foreign buying in selected blue chips following Thursday's rise on Wall Street, where the Dow Jones industrial average rose 112.39 points - 1.1 percent - to close at 10,197.70.
Dealers said there were also expectations of lower interest rates in Asia after the European Central Bank cut its key interest rate half a point Thursday to 2.5 percent in the first reduction since the euro currency was launched Jan. 1.
The Jakarta Stock Exchange's Composite Index rose 5.3 percent, or 21.211 points, to a year high of 421.213.
Shares in Hong Kong also closed sharply higher, boosted by expectations of a cut in local interest rates as well as by record gains overnight on the New York Stock Exchange.
The Hang Seng Index, the Hong Kong market's key indicator of blue chips, rose 186.26 points, or 1.59 percent, to close at 11,914.10, its highest level in 12 months. On Thursday, the index gained 112.97 points.
Brokers said shares prices rose on expectations that Hong Kong banks would cut interest rates.
After the market closed, the Hong Kong Association of Banks announced that it was cutting deposit rates by a quarter-point, to 3.75 percent. Major banks also cut their lending rates for their best customers to 8.50 percent from 8.75 percent.
In Tokyo, the key index rose for the fifth consecutive day.
The benchmark 225-issue Nikkei Stock Average added 8.94 points, or 0.05 percent, closing the week at 16,855.63 points. On Thursday, the average climbed 292.19 points, or 1.77 percent.
With continued buying by foreign investors, market sentiment was rather bullish for much of Friday, traders said.
The market was buoyed up in the morning by heavy buying related to the special quotation cash settlement of April options contracts, pushing the Nikkei above 17,000 for the first time since March 30, 1998.
Meanwhile, the U.S. dollar was quoted at 120.96 yen at late afternoon, up 0.20 yen from late Thursday in Tokyo but below its late New York level of 121.37 overnight.
The Australian share market closed at a record high in active trading, capping off a strong week. Buoyed by an all-time closing high on Wall Street overnight, and perceptions of a solid Australian economy, the market did enough to break a new high.
The Sydney's All Ordinaries Index rose 3.8 points, or 0.1 percent, to 3,060.0.
The market was closed in the Philippines for a public holiday.
Elsewhere:
In Taipei, Taiwan share prices closed slightly lower in volatile trading. The market's key Weighted Stock Price Index fell 7.71 points, or 0.1 percent, to 7,265.70.
In Wellington, New Zealand share prices closed sharply higher, buoyed by strong investor demand for blue-chip stocks. The benchmark NZSE-40 Capital Index rose 48.85 points, or 2.3 percent, to 2,171.09.
In Seoul, South Korean share prices closed mixed as aggressive foreign buying offset profit-taking by local retail investors. The Korea Composite Stock Price Index rose 6.23 points, or 0.9 percent, to 687.42, its highest close since Sept. 19, 1997.
In Kuala Lumpur, Malaysian share prices closed higher on foreign investors' optimism and speculation that interest rates could fall further in the medium term. The key Composite Index rose 11.52 points, or 2.07 percent, to 568.10.
In Singapore, share prices closed higher. The benchmark Straits Times Index rose 1.4 percent, or 23.65 points, to 1,665.26.
In Bangkok, Thai share prices closed higher. The Thailand SET Index rose 6.86 points, or 1.8 percent, to 371.95.