Emerging Asian bourses back on the buy-list

Emerging Asian bourses back on the buy-list

HONG KONG (Agencies): Many, but not all, of Asia's emerging stock markets seem to have been put back on the buy-list by foreign investors.

But brokers and analysts in the region questioned by Reuters yesterday are not convinced the trend can last throughout the year.

"There's evidently an asset allocation of foreign funds back into the region...in Hong Kong's case, there's both speculative hot money and more long term institutional investment," said Frederick Tsang, head of research at Primeast Securities.

In Hong Kong the Hang Seng index closed 176.46 points -- or 1.70 percent -- higher at 10,573.90 and dealers saw resistance at 10,800 on the index. Tsang predicted this level would be the cap for the market in the first quarter.

Malaysia's stock market was up 2.21 percent near the close after surging 2.71 percent on Wednesday.

Thai stocks surged 2.8 percent in the heaviest trading in more than a year as foreign institutional money poured into the bourse, brokers said.

The Stock Exchange of Thailand (SET) index was up 37.14 points to close at 1,360.57 points.

In Tokyo, the Nikkei stock average of 225 selected issues rose 749.85 points to end the half-day session at 20,618.00 points. The broader Topix index of all issues on the first section of the Tokyo Stock Exchange gained 53.36 points to end at 1,631.06.

Singapore's blue-chip share index closed 2.6 percent higher as foreign funds poured into the market in line with a region-wide surge, dealers said.

The Straits Times Industrials index of leading shares on the Stock Exchange of Singapore closed 58.93 points higher to 2,365.14.

In Seoul, share prices closed 3.2 percent lower on the Korea Stock Exchange , battered by news reports that the country's economic downturn would be accelerated by rising international raw material prices.

The composite price index plunged 28.88 points to close at 859.97.

Not all Asian stock markets have fared so well on the opening days of the year, however.

The sub-continent was a case in point with stock indices in Bombay, Colombo and Bangladesh all falling.

The only exception was the Karachi bourse -- closed amid a strike called by the ethnic Mohajir National Movement.

Australian share prices gained a meager 0.01 percent, as gold stocks held the local bourse up while the rest of the market took a breather after a two-day rally.

The All Ordinaries index, gained 0.3 points to 2,258.4, after gains of 1.6 percent and 1.4 percent Tuesday and Wednesday respectively.

In London, shares here rose slightly yesterday morning, following modest gains in gilts, but dealers feared some profit taking after overnight losses on Wall Street.

By mid-morning, the FT-SE 100 index of leading shares rose 4.4 points to 3720.

In Paris, the CAC-40 index opened 8.78 points lower at 1,934.18.

In New York, share prices finished higher Wednesday amid nervous hopes for a federal budget deal with the key Dow Jones index gaining 16.62 points or 0.32 percent to 5,194.06 at the close.