Most Asian stock markets to see post-holiday rise

Most Asian stock markets to see post-holiday rise

HONG KONG (Reuter): Most Asian stock markets should see a flurry of activity next week as investors and fund managers return from the Chinese New Year and Moslem Idul Fitri holidays, brokers said.

In Tokyo, despite the seventh consecutive decline in the 225- share Nikkei average on Friday, rises in high-technology shares and some individual issues showed market strength, analysts said.

"Rebounds in some individual speculative shares such as Daido Steel Sheet and semiconductor-related issues following rises in high-tech shares in New York are harbingers of a recovery in the market," said Harushige Kobayashi, deputy general manager at Yamaichi Securities.

In Hong Kong, shares are expected to run into increased volatility, as February index futures expire on Wednesday, players said.

"The market is bound to be swayed by futures gyrations, and HSBC and Hang Seng Bank's results reports on Monday will also affect trade as they are expected to set the tone for the rest of the reporting season," said Antony Mak, an associate sales director at Vickers Ballas.

"Wall Street's volatility is another important factor to watch for."

In Jakarta, share prices are likely to move upwards on Monday after the week-long Idul Fitri holiday, brokers said.

"The market could continue its uptrend after the holidays on possible further in-flow of foreign funds," one broker said.

He said many sectors, including property, were traded at relatively low historical levels while index-linked buying may continue to keep market sentiment upbeat.

But many analysts were cautious ahead of the release of a series of full-year results.

In Bangkok, the Stock Exchange of Thailand index is expected to be relatively inactive as the market will be open for only three days and foreign investors are expected to stay away, brokers said.

The market will be closed on Thursday and Friday during the summit of East Asian and European Union leaders.

"Poor market sentiment is expected to continue into next week and many investors will be away for the long weekend," said Songyos Kulvichien of First Asia Securities.

In Kuala Lumpur, the Malaysian stock market is expected to resume its uptrend when it reopens on Monday after a week-long holiday for Chinese New Year and the Moslem Idul Fitri, analysts said.

The Kuala Lumpur Stock Exchange Composite Index ended the week of Feb. 12-16 at 1,090.05 points.

Analysts said the market could resume its upward march as investment from overseas investors was still pouring in.

"The upward movement is intact," said one institutional dealer.

In Singapore, shares are likely to be firm on fund buying and retail bargain-hunting, brokers said.

"We expect many fund managers and retailers to return from their holidays next week," a dealing director at a local securities house said. "I expect participation in all sectors."

The key Straits Times Industrials index rose on Friday by 11.18 points to 2,465.99, up from 2,453.88 the week before.

In Manila, shares are expected to climb, with the index seen testing the 3,000-point barrier as foreign funds return after the Chinese New Year holiday, brokers said.

"Foreign funds are expected to pick up construction firms on their way back due to increasing activity in infrastructure development in the country," said Ivy Cayayan at Philippine Asia Equities.

In Seoul, stocks are not expected to change significantly without an influx of fresh liquidity and favorable market impetus, brokers said.

"With no specifically performing stocks, the market is expected to crawl sideways next week with the index hovering around 860-880," said Kwon Oh-seung of Samsung Securities.

Brokers said worries over the nation's economic growth would cause investors to shy away from manufacturing blue chips. Instead, investors would show selective buying interest in smaller capitalization shares, they said.

In Taipei, Taiwan stocks are expected to test the 5,000-point mark after government attempts to boost sentiment dampened by recent Taiwan-China tensions, brokers said.

"Communist China will soon conduct a military exercise near Taiwan, but the worry has been mostly discounted. So unless something more serious explodes, like a real war, the market tends to reflect more on the government's bullish attitude," said Tu Jin-lung of Grand Cathay Securities.

In Shanghai, the Shanghai stock market is closed for the Chinese New Year holidays until March 4.

In Shenzhen, the stock market is closed for the Chinese New Year holidays until March 4.

In Sydney, Australian shares are seen holding current levels in the near term, but profit results due in coming days would drive the performances of individual companies, brokers said.

"I think these levels will hold as long as the Dow does. Individual companies, though, will be driven by their results," said a Sydney broker.

In Wellington, New Zealand shares closed the week on a positive note, with the NZSE-40 Capital Index gaining 24.61 points on Friday.

Offshore buying interest and the positive sentiment produced by the surging Dow saw leading stocks post impressive gains.

Brokers said rising interest rates could put an end to the rally in equities.

In Bombay, Indian shares moved erratically in the past week and finished barely steady on insignificant buying by foreign funds because of holidays, brokers said.

They expect the bourses to revive next week, boosted by anticipated foreign buying. "We should see a 100-200 point rise," said a dealer.

In Dhaka, analysts fear a three-day opposition shutdown from Saturday may squeeze the Dhaka market's prospects. Brokers said market sentiment was likely to remain depressed unless the political situation stabilizes.