Asian marts end higher on hopes of tax cuts in Japan
Asian marts end higher on hopes of tax cuts in Japan
HONG KONG (AP): Asian stock markets closed mostly higher Thursday on anticipation of tax cut plans in Japan and hopes that Indonesia would start implementing economic reforms under a new agreement with the International Monetary Fund.
In Tokyo, the benchmark 225-issue Nikkei Stock Average rose for the fourth consecutive day as investors anticipated announcement of tax cuts and other stimulus measures.
The index closed up 160.04 points, or 0.98 percent, at 16,536.66, after gaining 858 points in the previous three days.
After the close of trading, Prime Minister Ryutaro Hashimoto told a news conference that his government plans to implement tax cuts exceeding 4 trillion yen (US$30 billion) to stimulate the economy.
Hashimoto said that in addition to a 2 trillion yen ($15 billion) special income tax cut this year, an equal cut will be made next year.
He said the government also will consider tax cuts in the welfare, education and investment sectors.
U.S. officials and Japanese business leaders have urged the government to take bold stimulus measures to rejuvenate the nation's sluggish economy.
Anticipation of tax cuts in Japan also buoyed share prices in Hong Kong, as did lower interbank interest rates.
The blue-chip Hang Seng Index closed up 0.2 percent at 11,342.02, after surging 2.4 percent Wednesday.
But in Jakarta, the government's announcement of IMF-backed revised economic reform plans Wednesday failed to inspire market confidence as investors, mostly foreigners, continued to dump blue chips.
The Jakarta Stock Exchange composite index closed down 2.45 points at 527.59.
Despite the fall in the Indonesian stock index, Malaysian share prices rose on optimism that Indonesia will finally start implementing reforms.
The benchmark Kuala Lumpur Stock Exchange Composite Index finished 11.65 points higher at 675.93.
In Seoul, share prices closed sharply higher, with the key index soaring 2.8 percent following the success of a South Korean global bond offering, analysts said.
The key index gained 12.58 points, closing at 468.11.
Meanwhile, Taiwan's main stock index suffered its biggest one- day point loss in five weeks as investors dumped shares across all market sectors after the announcement of disappointing first- quarter trade figures. Worries also remained about the Japanese economy, analysts said.
The Taiwan Stock Exchange's main index tumbled 1.9 percent to 9,90.31.
Stock markets in the Philippines were closed for Easter holidays.
Elsewhere:
In Bangkok, share prices ended mixed in thin trading ahead of the Thai New Year next week, dealers said. The key index lost 0.10 point, closing at 444.23.
In Singapore, share prices closed mostly higher on bargain- hunting spurred by the market's recent losses and the firmer regional currencies, dealers said. The key index jumped 1.3 percent, closing at 1,594.05.
In Australia, share prices ended an abridged session broadly lower, following falls on Wall Street in the absence of strong corporate news. The key index closed 7.7 points lower at 2,805.8.
In New Zealand, key stock index finished higher on good volume as investors continued to focus on market bellwether Telecom Corp. The index closed up 13.37 points at 2,305.52.