Japan shares lead regional gains

Japan shares lead regional gains

TOKYO (AFP): Japanese share prices led regional gains yesterday with a rally balancing losses earlier in the week, amid reports that the government would continue efforts to prop up the economy, dealers said.

Hong Kong shares were 1.4 percent higher after a bumpy ride throughout the week, influenced by regional concern over Indonesia's standoff with the International Monetary Fund (IMF) on economic reforms.

Eugene Law, an analyst with Lippo Securities, said continuing anxiety over Indonesia was preying on traders' minds.

"The reality is that there is a time bomb there and people just cannot be too optimistic," he said.

Southeast Asian markets were mostly higher with Bangkok gaining more than three percent on a strengthening baht and Jakarta, Kuala Lumpur and Singapore up more than 1.0 percent each on local support and domestic news.

Japanese share prices jumped 2.9 percent on a report that the government will use huge postal savings funds to bolster the stock market, brokers said.

The Asahi newspaper report prompted brokerage house dealers and individual investors to focus their buying on large-capital issues for quick profit-taking but it had limited impact on the market, brokers said.

The Nikkei Stock Average of 225 leading issues rose 484.92 points to end at 17,060.14, while the Topix index of all issues on the first section of the Tokyo Stock Exchange was up 26.49 points at 1,276.20.

In Hong Kong, share prices rose 1.4 percent to breach the 11,000 points barrier but traders lacked an incentive to reinvigorate a subdued market, dealers said.

The key Hang Seng index closed up 154.56 points, at 11,057.03 after starting the week at 10,919.53.

In Australia, the All Ordinaries index, gained 12.1 points, or 0.4 percent, to close at 2,731.6. The All Resources index was up 6.5 points, or 0.6 percent, to 1,164.1, while the All Industrials finished the day at 4,694.5, up 19.3 points, or 0.4 percent.

In Singapore, benchmark stock index closed 1.1 percent higher, with media group Singapore Press Holdings Ltd. (SPH) leading blue chips and oversold property stocks rebounding.

With regional currencies remaining stable, the Straits Times Industrials index closed 17.79 points higher at 1,598.63. The broader All-Singapore Index ended 1.94 points higher at 423.19.

In Kuala Lumpur, Malaysia's key stock index closed 1.4 percent higher in thin trade on local buying support despite lingering negative market sentiment, dealers said.

The Kuala Lumpur Stock Exchange's 100-share weighted composite index rose 9.93 points breaching the 700-points psychological barrier to end at 708.16.

In Bangkok, Thai stocks surged 3.1 percent ending three days of declines amid sharp currency appreciation and signs of a warm reception for Premier Chuan Leekpai in the United States, dealers said.

The Stock Exchange of Thailand (SET) composite index surged 15.57 points to close Friday at 514.24 points, while the selected SET 50 index was also up 1.38 points to 38.35 points.

In Manila, Philippine share prices closed 0.2 percent lower in continued sideways trade, brokers said.

The Philippine Stock Exchange index shed 3.21 points to 2,173.29.

In Seoul, share prices closed slightly higher after a volatile session punctuated by a security scare, with medium- and small- cap stocks at the center of local buying, dealers said.

The composite index closed up 0.32 points, or 0.06 percent, at 536.16, off a high of 540.09 and a low of 521.80.

In Shanghai, the Shanghai Stock Exchange's B share index rose 1.26 points to close at 56.34 points, while the A share index of locally-traded stocks ended up 5.87 points, or 0.5 percent, at 1,248.54 points.

In Taipei, Taiwan share prices closed hardly changed as late selling wiped out early gains amid consolidation, dealers said. "Lots of free stocks flowing amount retail investors made trading more volatile," said Eric Lo of Dresdner Bank.

The Taiwan Stock Exchange weighted price index slid 0.86 point to 9,055.51.

In New Zealand, stocks rose 1.3 percent on the back of a big gain by Telecom Corp.

The New Zealand stock exchange NZSE-40 index gained 30.42 points, to 2,299. 17.