Most Asia-Pacific markets stage rebound

Most Asia-Pacific markets stage rebound

TOKYO (AFP): Stronger Japanese shares led a return to confidence as investors maintained positive sentiment over the financial sector, as other markets in the Asia-Pacific were buoyed by comments from visiting IMF officials.

A pledge to reform the Indonesian economy from President Soeharto during a visit by International Monetary Fund (IMF) managing director Michel Camdessus helped foreign investors return to the region, dealers said.

Positive comments by the IMF chief on Friday also boosted Malaysian shares, as other bourses underwent technical rebounds after being oversold throughout the week, analysts said.

Japanese share prices surged 6.1 percent to above the 16,000- points level on improved sentiment over the financial sector, led by strong buying from foreign investors, brokers said.

The Nikkei stock average soared 924.47 points to end the session at 16,046. 45, the first close above the 16,000-point mark since December 17 last year.

It was the largest jump since November 17, when the key index shot up 1, 201 points or 8.0 percent.

The broader Topix index of all first section issues rose 52.60 points to close at 1,201.71, with turnover on the major board swelling to an estimated 700 million shares from Wednesday's 409.5 million shares.

In Hong Kong, share prices surged 3.7 percent on a technical rebound after the previous day's 7.0-percent slump on rumors of corporate defaults, dealers said.

"It is more of a technical rebound after investors realized they had oversold," said Ricky Tam, research director at Delta Asia Securities.

The key Hang Seng Index gained 321.06 points to close at 8,900.04 -- only its third gain so far in the new year.

In Sydney, Australian shares jumped 1.1 percent as the bourse shrugged off falls in Wall Street to take its lead from a strong rise in Japan and Hong Kong, brokers said.

The Australian Stock Exchange's key barometer, the All Ordinaries index, rose 29.5 points to 2,614.0. The All Industrials index finished the day up 45. 8 points at 4,510.7 and the All Resources was 17.2 points up at 1096.6.

In Singapore, share prices ended nearly 1.0 percent higher on late bargain-hunting of index-linked stocks.

"Investors were generally cautious in the beginning ahead of the weekend but some took the chance to pick up blue chips whose prices have come down quite a bit of late," a dealer with a local stock brokerage said.

The blue-chip Straits Times Industrial Index of the Stock Exchange of Singapore rose 11.90 points to end at 1,245.26, while the broader All-Singapore index was up 4.29 points to 370.87.

In Kuala Lumpur, Malaysia's key stock index ended 2.8 percent higher due to late-buying by institutional investors after a reaffirmation that Malaysia does not need IMF funding.

"In late afternoon, there was some buying interest by institutional players on index-linked counters, and retail players were picking up other cheap stocks," a dealer said.

The Kuala Lumpur Stock Exchange composite index rose 14.50 points to end at 539.97 while the second board gained 7.15 points, or 5.0 percent, to 153. 11.

In Bangkok, Thailand's volatile share market soared 5.2 percent on renewed buying by foreign investors after positive comments on the economy from IMF chief Michel Camdessus, dealers said.

"In addition to positive comments by Camdessus, gains in major overseas markets especially Hong Kong and Tokyo contributed to the jump," said Adisak Limthamrongkul, head of research at Union Asia Finance and Securities.

The Stock Exchange of Thailand (SET) composite index gained 18.88 points to close at 383.01 points, while the select SET-50 index added 1.76 points to its total to finish at 27.98 points.

In Manila, Philippine share prices fell 1.8 percent in a correction after a four-day rally, analysts said.

"This is just a normal correction," said Rogelio Gutierrez of Corinthian Securities Inc.

The Philippine Stock Exchange composite index fell 30.22 points to close at 1,676.63 points.

In Seoul, share prices retreated 3.5 percent on the Korea Stock Exchange amid record turnover as institutions took profits on recent sharp gains, dealers said.

Dealers said the downturn was expected, given the overbought state of the market, adding that slowed buying by foreign investors sparked institutional profit-taking.

The composite index closed down 17.88 points at 488.10.

In Shanghai, the B shares, nominally reserved for foreign investors, rose 4.7 percent on a perceived easing of the Southeast Asian currency turmoil, analysts said.

The Shanghai Stock Exchange's B share index rose 2.04 points to close at 44.80 points while the A share index of locally- traded stocks lost 2.55 points, or 0.2 percent, to 1,285.16 points.

In Taipei, Taiwanese share prices edged up 0.4 percent on strong buying of financial and technology issues, dealers said.

The Taiwan Stock Exchange weighted price index rose 28.33 points to 7,799. 10.

In Auckland, New Zealand shares fell 0.3 percent as sentiment stayed fragile on concerns over Asia's economic woes.

"Investors are extremely cautious and the volatility that we have to live with day to day is going to continue for the moment," Merrill Lynch's Matt Cunneen said.

The NZSE-40 index fell 6.27 points to 2,208.31.