Asia markets firm as Obuchi appointed PM

Asia markets firm as Obuchi appointed PM

SINGAPORE (Reuters): Most Asian share markets firmed yesterday as traders greeted the end of weeks of political uncertainty in Japan.

Tokyo shares gained 0.3 percent and Hong Kong's main index ended more than one percent higher, although the region's currencies softened in line with a weaker yen.

Japan's parliament formally named Keizo Obuchi as the country's prime minister, concluding an intricate political dance that has roiled regional markets and raised doubts about the ability of the world's second largest economy to pull itself and the rest of Asia out of recession.

Other share markets were mostly calm in quiet trade, with the exception of Pakistan where stocks plunged more than five percent after hopes of an immediate international bail-out for the struggling economy were dashed.

The main Nikkei index in Tokyo rose 43.51 points to 16,201.60.

Trade finished before Obuchi's formal naming as premier by the Lower House, but the vote was a near certainty. Dealers said most investors had cast aside initial doubts about his ability to implement reforms needed to salvage Japan's wrecked economy.

They said Obuchi had already enhanced his credibility with traders and investors by convincing a reluctant Kiichi Miyazawa, the architect of Japan's financial stabilization and bridge bank plans, to join his cabinet as finance minister.

Hong Kong stocks perked up after the release of interim bank results boosted sentiment.

The results were bad, but not as bad as some had expected, and analysts said that had given the market confidence ahead of more results next week.

The Hang Seng Index ended up 97.33 points, or 1.25 percent, at 7,906.16.

South Korean markets emerged intact from a flurry of economic data and forecasts.

The situation was reversed in Karachi. The main index there plunged 5.60 percent to 927.75 after hopes the IMF would come up with a lending plan for Pakistan on Wednesday fell flat.

Shares in Malaysia bounced back after Wednesday's four-percent dive, but dealers put it down to a technical rebound rather than a turnaround in sentiment.

The main composite index rose 0.92 percent to 389.53. News that Malaysia may hold general elections livened things up, but analysts said an election was unlikely to help the ailing economy.

"An election will test the strength of the government. It's better now than in 1999, which could be a bad year," said an asset manager at a private firm.

Thai stocks notched up a healthy 1.23 percent rise to close at 266.74. Traders reported active bargain-hunting in the banking and finance sector after sharp falls earlier this week.

Elsewhere in the region, Manila stocks ended slightly higher as did shares in Australia, while Taiwan's main share index lost around half a percent.