Asian shares seen to firm up this week after losses
Asian shares seen to firm up this week after losses
Agence France-Presse, Tokyo/Hong Kong
Asian shares are projected to continue rallying this week,
recovering from recent heavy losses caused by fears of higher
U.S. interest rates and other global issues.
In Tokyo, Japanese share prices are expected to continue
rallying on bright prospects for the domestic economy, recovering
from recent heavy losses caused by fears of higher U.S. interest
rates, brokers said.
"I don't expect negative factors this week," said Daiwa
Securities SMBC equity manager Kazunori Jinnai. "Share prices
will have no choice but to come back a bit more after plunging so
drastically."
The benchmark Nikkei average of 225 shares listed on the Tokyo
Stock Exchange closed at 11,070.25 points on Friday, up 2.03
percent or 220.62 points from a week earlier.
The market has reversed a downtrend in the three weeks to
Monday, when the key index closed at 10,505.05, down 13.64
percent from a recent peak on April 26.
The broader TOPIX index of all issues on the major board
gained 3.09 percent to 1,125.21 in the last week.
Concerns an expected credit-tightening by the U.S. Federal
Reserve would slow spending and investment in the world's largest
economy have eased, luring back investors to equities.
"The firm tone in the second-half of the past week will be
carried over with the Nikkei index consolidating below 11,500,"
said Nikko Citigroup market analyst Mika Katata.
She added a planned upward revision of Japanese economic
growth forecast by the International Monetary Fund (IMF)
bolstered market sentiment.
Brokers said the market would closely watch major economic
indicators due out in this week to ensure that there is no
relapse in Japan's economic recovery.
In Hong Kong, shares are likely to see continued volatile
trade this week as investors try to get the measure of record oil
prices and concerns over possible higher interest rates in both
the United States and China.
In a see-saw week that saw the market shed and gain points in
almost equal measure on alternate days, the benchmark Hang Seng
Index managed to finish with a gain of 309 points or 2.7 percent
overall.
That followed a 2.74 percent loss on Monday and a 3.6 percent
gain Wednesday, with a strong close of 2.08 percent on Friday
ensuring the market ended in positive territory for the week.
Oil prices could get a lead from an OPEC meeting in Amsterdam
over the weekend to discuss a possible production hike, news
which would certainly reassure all the markets.
The South Korean stock market is likely to continue a
technical rebound in this week amid hopes of weakening oil prices
and an easing sell-off of shares by foreigners.
The overall market index closed at at its peak for the day of
786.36 Friday, up 2.42 percent, on institutional program buying
sparked by foreign futures contracts as hopes of softening oil
prices helped stabilize sentiment.
In Kuala Lumpur, Malaysia's stock market is expected to remain
weak since fresh buying is still elusive amid weary sentiment.
The composite index closed at 791.53 points on Friday, down
2.44 from the previous week.
In Singapore, concerns about a possible increase in U.S.
interest rates and high oil prices could dampen trading on the
Singapore stock market this week.
The Straits Times Index closed at 1,767.23 on Friday, up 12.27
points or 0.7 percent from the previous week.
A dealer with a local brokerage noted U.S. monetary
authorities could raise interest rates as early as next month.
Interest rate hikes have a negative impact on the stock market
as investors are likely to shift their money to fixed-income
instruments such as bonds and U.S. treasuries.
The dealer said concerns about the effects of high oil prices
on Asia's economic rebound could also lead to subdued trading.