Asian stock marts up on Japanese hopes
Asian stock marts up on Japanese hopes
SINGAPORE (Reuters): Hopes for a stronger leadership in Japan boosted the yen and propelled Asian stocks upwards yesterday, with South Korean shares rocketing more than five percent.
Beleaguered Indonesian stocks gained ground after the International Monetary Fund announced it was resuming loan disbursements to Indonesia and said an additional $6 billion had been added to its financial rescue package.
Shares also rose strongly in Karachi and Bombay after a U.S. Senate vote giving President Bill Clinton powers to stall most sanctions against India and Pakistan.
Malaysia was the only major exchange to buck the trend. Kuala Lumpur's composite index ended down 0.82 percent at 429.99.
Japanese markets were heartened by news that former chief cabinet secretary Seiroku Kajiyama, seen as a man likely to take bold initiatives to revive the ailing economy, might seek the premiership after Ryutaro Hashimoto's resignation.
The yen strengthened through the 140 level against the dollar, prompting gains in several other regional currencies. The Japanese unit was trading at around 139.2 to the dollar in late Asian trade.
Shares on the Tokyo Stock Exchange, the region's largest bourse, clawed back early losses to post modest gains.
"The news about Kajiyama definitely improved market sentiment," said Tsuyoshi Segawa, general manager at New Japan Securities Co Ltd.
The Nikkei closed at 16,731.92, up 0.71 percent or 117.78 points. Expectations that Foreign Minister Keizo Obuchi would become Japan's next prime minister weighed on stocks early in the day.
In Seoul, the main index closed at the day's high of 330.35, up 5.4 percent or 16.93 points.
"Today's rise marks the biggest rise since July 1," said Joh Ju-youn, a broker at Daishin Securities. "Various factors such as the yen and interest rates worked to the market's favor."
In the subcontinent shares rallied after the U.S. Senate approved a measure giving the president powers to stall implementation of economic sanctions against India and Pakistan, imposed after the two rivals conducted nuclear tests in May.
Top-30
Bombay's Top-30 share index ended up 3.53 percent to 3,484.47, up 118.75 points, according to provisional figures.
Karachi's 100-share index ended the first session up 4.49 percent to 824.57, a gain of 35.42 points.
"The market is celebrating this news," Karachi dealer Shuja Rizvi said. "The stocks have gained on speculative buying."
Hong Kong shares closed sharply higher, lifted by positive sentiment from Japan. The Hang Seng index breached the 8,500 level to close 1.54 percent higher at 8,586.57, up 130.35 points.
"There was legitimate buying in the afternoon on the strength of the yen," said Rory McAllister at HSBC Securities.
Jakarta stocks ended higher as the International Monetary Fund's decision to resume loan disbursements boosted the rupiah.
In Washington, the IMF announced that it was disbursing a $1 billion loan to Jakarta. Together with other international lenders, it said it would also provide an extra $6 billion on top of the $41.2 billion dollar bail-out scheme already in place.
The Jakarta exchange's composite index closed up 1.38 percent at 473.77, up 6.43 points.
"I think over the next one or two days, the market will continue to show an upward trend," said Nelwin Aldriansyah, head of research at Arab-Malaysia Securities.
Thai stocks closed up 3.02 percent, as the stronger yen helped boost the baht in late trade. The composite SET index ended up 8.26 percent at 282.01.
Singapore's Straits Times Industrials index closed up 1.7 percent to 1073.97, gaining 17.96 points.
Australian stocks closed at a two-month high, propelled by strong interest in the struggling mining sector. The benchmark All Ordinaries index finished up 1.32 percent or 36.7 points at 2,810.6, the first time it has closed above the 2,800 level since May 8.
"An improvement in metal prices overnight was a key factor in attracting offshore buyers today," said Jamie Spiteri, a dealer with Shaw Stockbroking.