Asian markets gain as Tokyo succumbs

Asian markets gain as Tokyo succumbs

HONG KONG (AFP): Most Asia-Pacific stock markets posted moderate gains yesterday on the back of steadier regional currencies, but Tokyo shares succumbed to profit-taking.

A massive 16-billion-dollar tax cut announced by Japan to kickstart its stagnant economy had buoyed regional markets the previous day, and yesterday saw follow-through buying fueled by positive domestic developments.

Currencies including the Philippine peso, the Indonesian rupiah and the Thai baht came off their lows against the U.S. dollar, cheering up stock investors.

In Hong Kong, share prices recouped early losses and rose 0.6 percent in cautious trading to a seven-day high despite investors being wary about the direction of regional currencies.

"There is not much happening. Trading is boring," said Eugene Law, research director at Lippo Securities, adding "the market is reaching a resistance level, and there will be some profit- taking."

The key Hang Seng Index gained 61.41 points to close at a seven-day high of 10,754.11 -- each second consecutive gains.

In Tokyo, Japanese share prices closed 2.3 percent lower, depressed by profit taking following sharp gains posted the previous day on the announcement of a massive income tax cut, brokers said.

The key Nikkei stock average of 225 selected issues on the Tokyo Stock Exchange dropped 379.42 points to end the session at 16,161.64 while the Topix index of all issues on the first section was down 15.02 points at 1,212.93.

In Singapore, stock prices ended 1.4 percent higher on buying of banking and property counters amid a recovery by Asian currencies, including the local dollar.

The blue-chip Straits Times Industrials index of the Stock Exchange of Singapore rose 21.90 points to end at 1,591.41 while the broader All-Singapore index rose 6.44 points to 425.12.

In Kuala Lumpur, Malaysia's key stock index closed 3.7 percent higher on a technical rebound with follow-through buying by local institutions.

The Kuala Lumpur Stock Exchange's 100-share weighted composite index rose 20.79 points to 577.58. But the second board index dipped 2.36 points, or 1.2 percent to 188.89.

In Manila, Philippine share prices rose 2.7 percent due to the recovery of regional currencies and local bank moves to stabilize the Philippine peso, analysts said.

The Philippine Stock Exchange rose 49.19 points to close at 1,846.09 points.

In Taipei, Taiwanese stock prices ended 1.1 percent lower, pulled down by selling of technology shares, dealers said.

The Taiwan Stock Exchange weighted price index was down 92.15 points to 8, 255.05.

In Sydney, Australian share prices made marginal gains as a stronger resource sector offset falls among major industrials amid strong turnover with the early expiry of December options.

The Australian Stock Exchange's main indicator, the All Ordinaries index, gained one point to 2,563.1.

In Shanghai, the B shares, nominally reserved for foreign investors, closed barely lower in lack-luster trading amid the absence of fresh incentives, analysts said.

"Trading was quiet due to a lack of fresh leads," a dealer with a foreign brokerage said.

The Shanghai Stock Exchange's B shares index fell 0.03 points to 54.97 points while the A share index of locally-traded stocks closed 8.24 points, or 0.7 percent, lower at 1,215.91 points.

In Auckland, the NZSE-40 index was up 20.74 to 2318.51 on moderate turnover of NZ$64 million (US$38 million).

In London, the FT-SE 100 index of leading shares fell by 5.3 points to 5,185.5 in early trading.

In Paris, the Paris Bourse posted a satisfying gain in the first part of the yesterday session in active trading, supported by the dollar's firmness, traders said in early afternoon.

The CAC 40 index was up by 0.27 percent at the opening, and by 0.61 percent in the afternoon to stand at 2,910.89 points as trading continued. Volume stood at 6 billion francs on the monthly settlement market.