Stocks broadly higher in Asia and Europe

Stocks broadly higher in Asia and Europe

HONG KONG (Reuter): Southeast Asian stock markets closed broadly higher yesterday, including a strong surge on the Kuala Lumpur market, despite late selling due to disappointment over Malaysia's 1995 budget.

The Hong Kong market also firmed, thanks to a 27-point rise on Wall Street overnight and optimism over the local property market and prospects for a Sino-British financing agreement for the colony's new airport.

The Hang Seng index ended 74.89 points, or 0.8 percent, higher, to end at 9,379.47 -- up 41 points over the week.

The U.S. dollar ended a little firmer against the yen in Asian currency trading, but investors in Japanese stocks were cautious, awaiting the impact on the exchange rate of U.S. economic growth figures due to be released later yesterday.

Tokyo's 225-share Nikkei average ended 8.80 points higher at 19,805.16.

The day, though, belonged to Kuala Lumper, where the benchmark composite index ended 11.30 points, or one percent, higher at 1,113.04, off the day's high of 1,119.14.

Brokers attributed selling in the final half hour to disappointment that Malaysian Finance Minister Anwar Ibrahim did not announce fresh cuts in the corporate tax rate in the budget.

The budget also prompted some late selling in Malaysian stocks traded over the counter in neighboring Singapore, where the 30- share Straits Times Industrial index ended up 5.77 points at 2,362.46, but off the day's high of 2,370.33.

Thai and Philippines stocks also closed higher.

Bangkok's SET index closed 4.39 points up at 1,506.12, on buying of building-material and energy stocks, but investors were still cautious, awaiting a clearer picture of local and U.S. inflation, brokers said.

Manila's composite index ended 8.27 points up at 3,068.52. Elsewhere in Asia, the Taipei bourse broke a four-day losing streak and the key index ended up 10.01 points at 6,604.98 points. Share prices also rose in Wellington, but fell in Sydney, Seoul and Bombay.

The Australian market's All Ordinaries Index closed 11 points, or 0.54 percent, lower at 2021.2.

In London, share prices lifted slightly yesterday morning in cautious early trading ahead of the release of U.S. third quarter GDP figures.

At 10:00 GMT, the FT-SE 100 index of leading shares was up 4.7 points at 3,034.3 -- a rise of 0.15 percent -- while gilts were up 3/32 of a point.

In Paris, the CAC-40 index opened 7.01 points higher at 1,865.16.

London dealers said the market was encouraged by comments by Chancellor of the Exchequer Kenneth Clarke that it was overreacting to inflationary pressures, although he did not rule out a further hike in interest rates.