Share prices close higher in Tokyo but market lack energy

TOKYO (Agencies): Share prices closed slightly higher on late index-linked buying here yesterday but the market lacked energy in the absence of fresh incentives.

The 225-issue Nikkei Stock Average closed 74.11 points or 0.4 percent higher at 20,224.24. The Tokyo Stock Price Index of all issues on the first section also gained 9.52 points to 1,644.56.

The market could not find direction as the yen refused to be influenced by the overnight decision of Germany's Bundesbank to cut interest rates, brokers said.

Domestic institutional investors remained on the sidelines due to the uncertain course of US stock and bond prices and political unrest at home over the fragile leadership of Japan's new minority government, brokers said.

In Hong Kong, stock prices dropped slightly on profit-taking after gaining 4.29 percent in previous day's trading, with the blue-chip Hang Seng Index losing 27.30 points to close at 8,878.86.

Turnover amounted to HK$4.47 billion (US$574 million), down from the previous day's HK$5.05 billion.

After gaining 366.07 points -- its largest single-day gain in nearly two months -- on Wednesday, the market opened flat after a drop in the Dow Jones Index overnight, with the key barometer losing all earlier gains to close the morning session 6.76 lower.

In Sydney, the market barometer, the All Ordinaries index, finished at 2,041.4 points, 6.8 above Wednesday's finish. The All Industrials index eased 15.2 points to 3,069.9 while the All Resources climbed 25.2 points to 1,262.8.

National turnover totaled 192.4 million shares worth A$527.8 million ($380 million) with rising shares outnumbering falls by about eight to seven.

In Taipei, bourse eased as late heavy selling pressure ate away early gains, with textile and paper-making shares hit hardest, dealers said.

Eroding the previous day's 87.1-point jump, the benchmark 375- issue weighted price index declined 20.09 points or 0.3 percent to settle at 6,004.38 points.

Turnover swelled to 1,83 million shares valued at t$87.43 billion ($3.27 billion) from 1,298 million issues worth t$61.96 billion previously.

In London, shares drifted lower, dragged down by a 27-point overnight fall on Wall Street.

The blue-chip Financial Times Stock Exchange 100-share index was at 3,117.3 near midday, down 13.2 points from the previous close. The narrower Financial Times 30 index was at 2,484.5, down 7.0 points.

In New York, the Dow Jones index of 30 leading industrials lost 27.37 points on Wednesday to close at 3,629.04. Tuesday's rise had snapped a four-session losing streak.

In the broader market declining issues led advances 1,546 to 661 on moderate trading of 277 million shares on the New York Stock Exchange.