Asian shares cautious but generally higher

Asian shares cautious but generally higher

TOKYO (AFP): Stocks in Asia took heart Thursday from a strong rise on Wall Street's technology index but remained wary over the possibility of higher U.S. interest rates, dealers said.

Singapore, Indonesia and Kuala Lumpur all posted strong gains on domestic factors but the rest of the region took a more cautious approach.

Dealers said institutional investors were reluctant to take major new positions ahead of a Group of Seven meeting in Japan this weekend and with the direction of U.S. rates still unclear.

In Tokyo, shares edged up 0.6 percent as high-tech issues regained favor after a record-breaking rally by the Nasdaq index in the United States.

The Nikkei average of 225 selected issues rose 110.26 points to end at 19,008.01.

Bargain-hunting and position-covering in selected blue chips bolstered the market, brokers said, but buying ran out of steam when the Nikkei average neared 19,200 points.

"Buying petered out in the afternoon session as investors with real demand stuck to the sidelines," Segawa said.

Investors continued to sell cyclical and low-priced issues which have been pressured by banks and companies unwinding their cross shareholdings.

But there was strong downside support due to expectations of demand coming from new investment trusts.

In Hong Kong, share prices dropped 0.4 percent on late selling. The key Hang Seng index lost 60.03 points to close at 15,215.31, after gaining 0.2 percent in morning trade on selective bargain hunting.

In Jakarta, Indonesian share prices closed 2.2 percent higher, boosted by draft budget proposals and the signing of a letter of intent with the International Monetary Fund. The Jakarta Stock Exchange composite index closed up 14.158 points at 670.153.

In Singapore, share prices closed 2.7 percent higher on bargain hunting and better than expected trade figures. The benchmark Straits Times Index rose 60.66 points to end at 2,315.53.

In Kuala Lumpur, Malaysian shares closed 1.9 percent higher on fresh local and foreign buying. The Kuala Lumpur Stock Exchange composite index ended up 17.48 points at 950.86.

In Seoul, South Korean share prices closed barely higher after renewed institutional bargain hunting wiped out earlier losses. The Korea Stock Exchange composite index closed up 7.12 points at 945.90, off a low of 906.26.

In Taipei, the Taiwan stock market fell for the third consecutive day. The Taiwan Stock Exchange weighted price index moved down 14.49 points to 9,136.95.

In Bangkok, Thai stocks closed marginally higher. The Stock Exchange of Thailand (SET) main index was up 0.31 points or 0.06 percent at 486.64 while the select SET 50 was down 0.11 at 34.99.

In Manila, Bargain hunters helped push the Philippine stock market 0.2 percent higher. The Philippine Stock Exchange composite index rose 4.84 points to close at 2,053.37 points.

In Sydney, Australian shares closed up one percent. The Australian Stock Exchange's benchmark All Ordinaries index ended up 31.7 points at 3,137.1.

In Auckland, new Zealand's share market took another beating. The NZSE-40 index dropped a hefty 1.7 percent, or 37 points, to 2,086.8.