Asian stocks close higher after Japan fears quelled
Asian stocks close higher after Japan fears quelled
HONG KONG (AP): Overcoming their initial uncertainty, most
Asian stocks closed higher yesterday buoyed by optimism that the
next government will get the ailing Japanese economy back on
track.
Tokyo stocks extended their gains for the third straight day
on hopes that new leadership that will replace Prime Minister
Ryutaro Hashimoto, who resigned Monday, will be more aggressive
on such long-standing issues as a permanent tax cut.
The Nikkei average of 225 selected issues rose 125.23 points,
or 0.8 percent, to 16,614.14 after a 128.52-point rise Tuesday.
The market hoped for "a less fiscally restrained post-
Hashimoto administration," said Dhia Amir, a senior institutional
sales trader at Nomura Securities in Tokyo.
In the currency market, the dollar was trading hands around
140.80 yen in Tokyo, compared with 139.98 yen in New York late
Tuesday.
In Seoul, shares closed sharply higher Wednesday with the key
index rising 2.2 percent on hopes of a more stable yen.
The benchmark index KOSPI closed at 313.42, with a 6.69 rise
over the previous close of 306.73.
In Hong Kong, stocks closed sharply higher, buoyed by futures-
related buying, a stabilizing yen, and a strong performance of
key overseas stock and currency markets.
The Hang Seng Index, the market's key indicator of blue chips,
rose 277.29 points, or 3.4 percent, to close at 8,456.22. The
index shed 5.2 percent in the past four sessions.
Trading volume rose to HK$4.64 billion (US$594 million) from
2.70 billion (US$346 million) in the previous session.
Analysts said optimism that new leadership will take more
aggressive economic measures to stabilize Japan's ailing economy
also pushed stock prices up, adding that a record run on Wall
Street and lower local interest rates also boosted sentiment.
In Wellington, New Zealand stocks finished higher on a fall in
short-term interest rates and a record performance of the U.S.
share market overnight. The NZSE-40 capital index gained 27.72,
closing at 2,105.99.
In Sydney, shares closed higher with improved investor
sentiments on commodity prices and stronger trading in Asian
markets. The All Ordinaries Index was up 19.70 points over the
previous close, ending at 2,773.90.
In Kuala Lumpur, Malaysian shares closed sharply higher on
foreign investor buying and on hopes that developments in Japan
will improve. The benchmark Composite Index of 100 key stocks,
was up 13.21 points, or 3.1 percent, closing at 433.54.
In Singapore, shares closed mostly higher as regional
sentiment was boosted by a strong South Korean won and optimism
that Japan will hasten economic reforms. The Straits Times
Industrial Index was up 13.57 points, or 1.3 percent, closing at
1,056.01.
In Bangkok, Thai shares closed higher after a rally in Wall
Street and other Asian markets encouraged local buying. The SET
index gained 3 percent, or 8.04 points, finishing at 273.75.
In Manila, Philippine shares ended mixed as regional
uncertainties outweighed Wall Street's overnight gains and a
stable performance by the peso. The PPS Index of 30 selected
issues closed 9.19 points, or 0.5 percent higher at 1,794.06.
In Taipei, Taiwan shares ended higher as overnight gains on
U.S. stock markets bolstered sentiment and encouraged buying in
technology-related issues. The Weighted Price Index closed 86.69
points, or 1.11 percent higher at 7,875.91.