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.