New confidence sees rise in Asia, share prices stronger

New confidence sees rise in Asia, share prices stronger

HONG KONG (AFP): A boost of confidence in the Hong Kong and Tokyo markets spread to other Asian bourses yesterday as share prices generally gained ground after strong gains the previous week.

Asian markets were generally stronger on concrete actions to restructure economies, under International Monetary Fund (IMF) guidance, with Jakarta share prices gaining 6.1 percent, and Seoul putting on 6.6 percent.

Hong Kong share prices closed 5.6 percent higher, with the key Hang Seng Index gaining 500.38 points to end the session off its highs at 9,400.42.

The government's decision to withdraw a prime development site from its land disposal program also lent a boost, fueling speculation the administration might ease its housing and land policy which has been seen as depressing the real estate sector.

In Tokyo, Japanese share prices ended 1.3 percent higher on renewed expectations that the government would unveil additional economic stimulatory measures, brokers said.

As participants are beginning to regain confidence thanks to the optimism for a shift of the government's economic policy to a more stimulatory one, the focus from now on is on how quickly the next stimulus measures will be formulated," a broker at a mid- sized securities house said.

The Nikkei stock average finished up 215.99 points at 16,262.04, closing off its high of 16,461.44 touched in the morning. The broader Topix index of all first section issues rose 29.75 points to close at 1,231.46.

In Sydney, Australian share prices jumped 1.4 percent on the back of stronger U.S. and Asian markets and a rally in commodity prices, brokers said.

The Australian Stock Exchanges main indicator, the All Ordinaries index, rose 36.7 points to 2,650.7. The All Industrials index closed 52.8 points higher, or 1.2 percent, at 4,563.5 while the All Resources index climbed 25.3 points, or 2.3 percent, to 1,121.9.

In Singapore, share prices ended 6.6 percent higher on positive sentiment generated by a rebound in other regional markets and reports that the city-state's economy would be more resilient than presumed.

"The market has found support from the stability in the region," a dealer with a foreign brokerage said.

The benchmark Straits Times Industrials was up 81.92 points at 1,327.18, while the All-Singapore index rose 17.13 points to 388.00.

In Kuala Lumpur, Malaysia's key stock index rallied to end 9.1 percent higher on a fresh wave of support from both local and foreign investors amid renewed confidence, dealers said.

"Local investors are pushing the market up for a Lunar New Year rally, they are hoping to make some profits by then," a dealer at a local brokerage said.

The Kuala Lumpur Stock Exchange's 100-share weighted composite index surged 49.11 points to end at 589.08. The lesser second board index closed up 14.5 percent or 22.26 points to 175.37.

In Bangkok, The Thai share market leapt 9.8 percent on heavy volume as investors speculated in oversold blue chips and markets around Asia rallied, analysts said.

"Obviously there's been a rush of foreign money come into the market and whenever that happens it was bound to shoot up because there's been so little liquidity lately," ABN Amro Hoare Govett senior analyst Rob McMillan told AFP.

The Stock Exchange of Thailand (SET) composite index gained 37.7 points to 420.72, while the SET 50 index jumped 3.47 points to finish at 31.45.

In Manila, Philippine share prices climbed 5.7 percent, taking their cue from a stronger weekend close on Wall Street and a rally by the peso, analysts said.

The bourse is "boosted by the rise in the Dow Jones ... and a lot of the Asian markets have also started to move up," said Joey Anzures of ATC Securities, Inc.

The Philippine Stock Exchange composite index rose 95.26 points to close at 1,771.89 points.

In Seoul, share prices shot up 6.6 percent up on the Korea Stock Exchange on foreign buying which in turn raised local interest, dealers said.

A KLB Securites dealer said restructuring programs by three major business groups -- Hyundai, Samsung and LG -- contained positive moves to facilitate economic restructuring.

The composite index closed up 32.86 points at 528.77, off a high of 528.80.

In Shanghai, the B shares, nominally reserved for foreign investors, soared 7.0 percent, buoyed by a strong performance in the Hong Kong stock market, dealers said.

The Shanghai Stock Exchange's B share index added 3.13 points to close 47. 93 points while the A share index of locally-traded stocks lost 2.39 points, or 0.2 percent, to 1,282.76.

In Taipei, Taiwanese stock prices slid 0.6 percent, led by financial shares, on profit-taking ahead of the Chinese New Year holidays, dealers said.

The bourse closes from January 23 to February 1. The Taiwan Stock Exchange weighted price index dropped 47.86 points to 7, 847.62.

In Auckland, New Zealand shares firmed 1.3 percent, closing just off their highs in thin trading.

The NZSE-40 capital index closed 28.45 points higher at 2,236.73.