Asian stock markets end firmer

Asian stock markets end firmer

TOKYO (AFP): Asian stock markets ended higher on Monday on follow-through buying spurred by G-7 resolve to prevent a global economic slide and Wall Street's rebound on better-than-expected U.S. economic growth data.

Tokyo gained 2.9 percent, buoyed by news of tie-ups in the banking sector, Singapore surged 4.9 percent, Hong Kong ended marginally higher, Bangkok gained 1.1 percent and Jakarta advanced 2.0 percent.

Sydney ended up almost 1.0 percent and Taipei rose 0.7 percent. Manila was shut for a holiday. Auckland notched up its biggest one-day gain since 1994 with a 3.8 percent jump.

In Kuala Lumpur stocks rose 3.6 percent on retail buying of warrants and late window-dressing, shrugging aside the start of the trial of former deputy premier Anwar Ibrahim on corruption charges.

Regional analysts said sentiment in Asian markets had been bolstered by the G-7 statement Friday that called for a new framework for the next century to stabilize the increasingly interlinked economies of the world.

The G-7 also called for a new IMF rescue fund, a short-term line of credit for countries that are not in crisis but are threatened by devaluation and economic weakness.

Howard Gorges, vice chairman of the South China Brokerage in Hong Kong, said the statement had been good news for the markets.

"It looks as though this will prevent a problem arising in Brazil, so Latin America should stabilize and that will be good news for Asia," he said.

"Governments now also seem aware that growth is the problem and not inflation which implies further cuts in interest rates," he added.

Wall Street's 1.1-percent rise Friday, when it was buoyed by an increase of 3.3 percent in U.S. gross domestic product in the third quarter, also propped up sentiment in regional bourses.

The 225-issue Nikkei average on the Tokyo Stock Exchange rose 388.24 points to end at 13,952.75.

Bank shares rose in heavy trading on news Fuji Bank, Yasuda Trust and Banking and Dai-Ichi Kangyo Bank (DKB) planned a major tie-up, brokers said.

"The impact of Fuji Bank's tie-up with DKB was very strong, as both Fuji Bank and Yasuda Trust had been one of the largest concerns in the market," a Kyoritsu Securities broker said.

"One risk for financial sector instability appears to have faded."

"Gains of bank issues help hold overall sentiment positive, boosting gains overall in the market."

The broader Topix index of all first-section issues gained 30.24 points to 1,065.84 points.

In Hong Kong, the main blue-chip index then traded in a narrow range throughout the afternoon session, with investors turning their sights to second line stocks and China plays.

In Singapore, the Straits Times Industrials index rose 58.52 points to 1,263.14, while the broader All-Singapore index rose 9.29 points to 358.16.

In Sydney, the Australian Stock Exchange's benchmark All Ordinaries index closed up 25.2 points at 2,672.5.

In Kuala Lumpur, the Kuala Lumpur Stock Exchange's composite index ended at 419.78 points, up 14.45 points from Friday's close.

In Bangkok, the Stock Exchange of Thailand (SET) main index closed up 3.64 points at 334.93. The SET 50 selected index was 0.33 points firmer at 24.13.

In Seoul, the Korea Stock Exchange index closed up 1.17 points at 404.61, off a high of 410.84.

In Taipei, the Taiwan Stock Exchange weighted price index rose 52.11 points to 7,218.09, following a 0.9 percent rise in the previous session.

In Shanghai, the Shanghai Stock Exchange's B-share index shed 0.27 points to close at 32.95 points, while the A-share index of locally traded stocks rose 6.73 points, or 0.5 percent, to settle at 1,300.32 points.

In Auckland, the key NZSE-40 index closed up 3.8 percent or 71.19 points to 1949.74.