Asian markets soar on revived confidence

Asian markets soar on revived confidence

SINGAPORE (AFP): Asia-Pacific bourses surged yesterday as regional currencies stabilized and IMF and US officials voiced confidence the region's tattered economies would mend.

Singapore stocks rose 7.5 percent, Kuala Lumpur 6.5 percent, Hong Kong 5.8 percent, Manila 6.0 percent, Shanghai 5.7 percent, Bangkok 5.4 percent, Jakarta 4.9 percent and Taipei 3.8 percent. Tokyo shares put on 2.5 percent and Sydney 1.5 percent.

The second consecutive gain on Wall Street overnight and the presence in the region of International Monetary Fund chief Michel Camdessus and U.S. Deputy Treasury Secretary Lawrence Summers buoyed investors.

Both Camdessus, speaking in Singapore, and Summers in Bangkok voiced their faith in Asian economies and held out hopes of a recovery from the region's crippling financial crisis if structural economic reforms are implemented.

In Singapore, positive news over the Indonesian economy and the relative stability of Asian currencies lifted the Straits Times Industrials 86.75 points to 1,243.27.

In Tokyo, Japanese share prices rose 2.5 percent on short- covering among bank shares, with the market sentiment buoyed by the extended rebound on Asian markets, brokers said.

"Asia's sharemarkets appear to have pulled out of their bottomless slide, and excessive pessimism has receded slightly," one broker said, "although we cannot be too optimistic about mid- to long-term prospects."

The Nikkei Stock Average of 225 leading issues rose 366.04 points to finish at 15,121.98 while the Topix index of all issues on the first section of the Tokyo Stock Exchange was up 27.49 points at 1,149.11.

In Hong Kong, share prices surged 5.8 percent in the second day of strong gains, as interbank rates eased with the stabilization of regional currencies, dealers said.

The key Hang Seng index gained 506.55 points to close at 9,226.55 after having added 598.94 points in the previous day's trading for the year's first gain.

In Kuala Lumpur, Malaysia's key stock index surged 6.5 percent on follow-through buying activities as the local currency firmed and regional bourses strengthened.

"Undoubtedly there is some positive sentiment as a result of the improved currency situation. This has created an environment where investors are starting to re-look at local shares," said a brokerage research head.

The Kuala Lumpur Stock Exchange composite index soared 32.79 points to end at 536.68, off an earlier high of 545.53.

In Sydney, Australian shares rose 1.5 percent after strong gains on Wall Street and in Asia combined with improved gold prices to boost confidence, brokers said.

The Australian Stock Exchange's key barometer, the All Ordinaries index, rose 40 points to close at 2,605.3.

In Bangkok, Thailand's share market soared 5.4 percent as the country's currency enjoyed a rare respite and as a top US official gave Bangkok's economic reform efforts the thumbs up, dealers said.

Investors were buoyed by when visiting US Deputy Treasury Secretary Lawrence Summers gave the Thai government attempts to restructure the economy a crucial vote of confidence.

The Stock Exchange of Thailand (SET) composite index rose 18.73 points to close at 367.69 points amid foreign-led buying in the blue chip issues. The selected SET 50 index rose 1.7 points to close at 26.56.

In Manila, Philippine share prices led by San Miguel Corp. closed 6.0 percent higher amid a strengthening of the local currency and continued bargain-hunting, analysts said.

The Philippine Stock Exchange composite index rose 95.23 points to close at 1,686.22 points.

In Seoul, share prices closed 2.5 percent up but off their highs on the Korea Stock Exchange, with persistent foreign buying discouraging local investors' attempts at profit-taking, dealers said.

"Even if the inflows of more influential foreign funds are not significantly high, their cautious return to the local market bodes well for (the entry of) more overseas funds," a Samsung dealer said.

The composite index closed up 11.39 points at 475.13, off a high of 482.84.

In Taipei, Taiwanese stocks soared 3.8 percent, led by strong buying of technology issues, on the back of an overnight rise on Wall Street and Hong Kong's continued rally.

The Taiwan Stock Exchange weighted price index rallied 285.01 points to 7, 798.25.

In Shanghai, the B shares, nominally reserved for foreign investors, surged 5.7 percent, boosted by two consecutive days of gains in Hong Kong's Hang Seng index, analysts said.

The Shanghai Stock Exchange's B share index rose 2.46 points to close at 45.47 points.

In Auckland, New Zealand shares staged a healthy advance, closing up 1.0 percent against the backdrop of favorable local and international markets.

The NZSE-40 index jumped 21.88 points to close at 2,236.40 in moderate trade of NZ$52.76 million (US$30 million).