HONG KONG, Oct 9, 2007 (AFP) - Asian stocks ignored a mixed performance by Wall Street overnight and closed mostly higher Tuesday with investors focussing on domestic issues which drove many benchmarks to record closing highs.
Sydney, Seoul, Jakarta, Shanghai and Hong Kong all closed at record highs while in late trade Mumbai was also striking its best ever levels amid high expectations for second quarter earnings.
Tokyo typified the day with a 0.56 percent rise after re-opening from a long weekend with investors catching-up with regional gains made on Monday.
Kuala Lumpur was up 0.4 percent on bargain hunting in bluechips and Bangkok rose 0.51 percent ahead of a central bank decision on interest rates.
However, Wellington eased 0.35 percent after a downbeat business confidence report, Taipei fell 0.80 percent as the benchmark struck technical resistance levels and Manila shed 2.5 percent amid a bout of profit taking.
TOKYO:Japanese share prices closed up 0.56 percent as jitters about the health of the US economy eased following last week's better-than-expected US jobs data.
Dealers said a softer yen also boosted exporter shares as investors returned to their desks after a long weekend.
The Nikkei-225 index added 94.86 points to 17,159.90. Turnover rose to 1.70 billion shares from 1.65 billion shares on Friday.
Dealers said Friday's surprisingly solid non-farm payrolls report eased concerns about the impact on the US economy of the problems in the subprime mortgage sector for risky borrowers.
'But investors seemed to refrain from buying aggressively as they waited for the release of earnings of Japanese retailers this week as well as the US reporting season,' said Hiroaki Hiwada, strategist at Toyo Securities.
In the US, aluminium giant Alcoa Inc was due to kick off the third-quarter reporting season later Tuesday.
Investors are also uncertain about prospects for further US interest rate cuts in light of the unexpectedly robust US jobs report, dealers said.
Share prices closed off their highs of the day as investors waited 'to see how the US markets will react to reduced expectations of an interest rate cut,' said Kazuhiro Takahashi, equity general manager at Daiwa Securities SMBC.
Among Japanese stocks, Toray Industries Inc. rose 42 yen or 4.9 percent to 899 after announcing plans to become the world's first company to mass produce car parts made of carbon fibre.
Leading department store operator Takashimaya slipped four yen or 0.3 percent to 1,288 after lowering full-year its net profit forecast slightly amid a difficult business environment.
Olympus Corp advanced 30 yen to 5,100.
HONG KONG: Share prices closed up 1.65 percent at a record high as property stocks drew interest on hopes the chief executive will boost demand for housing in his annual address.
Dealers said the market was also supported by late interest in Bank of Communications (BoComm) and gains in Cathay Pacific Airways amid lower crude oil prices.
The Hang Seng Index closed up 457.75 points at 28,228.04. Turnover was 129.05 billion Hong Kong dollars (16.63 billion US).
Trade was volatile, with the index swinging in and out of negative territory during the day before ending sharply higher.
Chief Executive Donald Tsang is due to give his annual policy address Wednesday and is expected to include measures to boost the economy, including possible tax cuts.
'The market picked up in the afternoon led mainly by properties as investors are expecting that Donald Tsang may announce some pro-economy policies, tax cuts and a fee waiver to encourage home-buying,' said Matthew Kwok, research head at Tanrich Securities.
He said that investors are also still hopeful that the US Federal Reserve may cut interest rates again this month following a 50 basis points cut in September.
China Mobile ended up 1.1 dollars at 129.7.
SHANGHAI: Chinese share prices closed up 0.41 percent Tuesday, as buying in consumer stocks helped eke out a fresh record for a second straight day running, dealers said.
However, they said the gains were capped by worries that stocks in the nation's red-hot markets have risen too fast, with the key index weighed down for most of the session.
'There are few stocks that are cheap now, but some investors picked up stocks particularly in the afternoon as they saw the earlier consolidations as a good chance to buy,' said Zhang Gang, analyst at Southwest Securities.
The Shanghai Composite Index ended the day up 23.14 points at 5,715.89.
Turnover was 162.49 billion yuan (21.6 billion US dollars).
'The market fluctuated with some investors worrying that A-share prices were too high and vulnerable to correction,' said Zhu Liang, an analyst with Soochow Securities, referring to the losses in the morning session.
Shares of China Shenhua Energy, which raised a record 8.9 billion dollars in the nation's largest initial public offering, jumped 87 percent on their trading debut on the Shanghai bourse Tuesday to 69.32 yuan.
TAIPEI: Taiwan share prices closed 0.80 percent lower as technical resistance led the market to consolidate in the absence of strong positive leads.
Dealers said investors pulled back from driving the market closer to its year-to-date high of 9,807 points, recorded on July 26, while recent front runners led by TFT-LCD panels makers fell under profit-taking pressure.
The weighted index closed down 77.34 points at 9,639.83 on turnover of 164.44 billion Taiwan dollars (5.04 billion US).
'Investors opted to take a breather, now that the market is near a psychologically and technically significant threshold,' said Yuanta Core Pacific Securities assistant vice president Oliver Fang.
He said investors were particularly cautious also because the market will be closed Wednesday for Taiwan's National Day holiday.
However, he added that despite the current technical weakness, the market appears to have underlying fundamental support, largely coming from the Taiwan dollar's strength, which could propel shares to new record levels when the consolidation period is over and the expected bull run resumes.
'The party is not over yet,' he said. 'Thanks to a local currency that is generally headed for further appreciation, Taipei should benefit from ample liquidity over the remainder of the year.' Cathay Financial closed down 1.00 dollar at 84.00.
SEOUL: South Korean share prices ended mixed after a volatile session although solid gains by steelmakers and shipbuilders lifted the key KOSPI index to a record close.
Dealers said a tug of war developed between those who bet on a further rally and profit-takers ahead of a corporate earnings season and the expiry of options contracts. But last-minute buying in steelmakers and shipbuilders helped nudge the main index to a new closing high.
The index ended 1.31 points higher at 2,014.13. Volume was 456 million shares worth 7.3 trillion won (7.95 billion dollars).
'The market gain was pretty marginal but the fact that it clawed back losses towards the close and managed to finish in positive territory is encouraging,' said Seoul Securities analyst Park Seok-Hyun.
Though a technical correction appears inevitable following such steep run-ups, Park said, strong market fundamentals as well as improving sentiment appear to point to additional room for gains.
POSCO gained 12,000 to 705,000 won.
SYDNEY: Australian share prices rose 0.4 percent to a fresh record as a strong banking sector offset falls in resources.
The S&P/ASX 200 came back from a slow start to end up 23.5 points at an all-time high of 6,677.8. Turnover was light, with 1.6 billion shares worth about six billion dollars (5.4 billion US) changing hands.
'Investors moved into more of the defensive stocks today, with the retail and banking sectors performing well,' CommSec equities analyst Savanth Sebastian said.
The market appeared to ignore data which showed that business conditions were the weakest since February, he said.
'We expected some profit-taking as the market has rallied about 21 percent since mid-August, but retailers and industrials performed well, with Woolworths hitting a record high and industrials including Qantas, Transurban and Macquarie Airports making solid gains,' he said.
Woolworths closed up 77 cents at a record 31.66 dollars..
SINGAPORE: Share prices closed at another all-time high, rising 1.2 percent on gains in select blue-chips.
The Straits Times Index closed 45.44 points up at 3,865.75. Volume totalled 3.0 billion shares worth 2.36 billion Singapore dollars (1.61 billion US).
'Trading activities are quieter and the focus is on blue-chips,' said Chan Tuck Sing, head of dealing at UOB Kay Hian.
Chan said some of the blue-chips are running up on expectations of good earnings, while others are playing catch up on the index's recent gains.
'There is a little bit of catching up from the banks now that the subprime issues seem to be moderating,' he said.
Investors are also accumulating blue-chips on expectations the economy grew strongly in the third quarter to September. The trade ministry will release advance estimates on Wednesday.
'Some UK investors were more positive about Singapore and felt that there could be upside earnings surprises in 2008 given the buoyant economy,' said Citigroup research head Lim Jit Soon in a note to clients.
DBS Group Holdings was up 10 cents at 22.60.
KUALA LUMPUR:Malaysian share prices closed 0.4 percent higher due to late bargain hunting in selected blue-chips.
Dealers said a strong finish in some regional markets helped lift investor sentiment but cautioned gains could be short-lived.
'There is a lack of confidence in the market,' said Tee Sze Chiah, an analyst at Aseambankers Research.
'With the US market down, there's really no incentives for investors to buy aggressively,' Tee said.
The composite index was up 5.25 points at 1,369.39. Volume was 1.7 billion shares valued at 1.9 billion ringgit (559 million dollars).
Tee said the current uptrend would come to a 'halt' soon, forecasting a flat week ahead as Muslims prepare for the Eid festival this weekend.
Tenaga dropped five sen to 9.70 ringgit.
BANGKOK:Thai share prices closed 0.51 percent higher, with investors buying heavy-weight energy stocks as regional markets closed mixed to mostly higher.
Dealers said investors remained cautious ahead of the Bank of Thailand's interest rate meeting Wednesday, despite continued foreign fund inflows.
The SET composite index rose 4.43 points to 867.59 on turnover of 2.5 billion shares worth 22.2 billion baht (650 million dollars).
Aisak Kammool, vice president of KGI Securities, said energy stocks led gains, rising 1.2 percent on Tuesday's trading.
'Investors continued to buy energy-linked shares while ignoring the likelihood of falling oil prices,' he said.
Meanwhile, Adisak said interest rates remain 'the concern' of investors who see the central bank's decision Wednesday as an indicator of the state of the Thai economy.
The market expects the BOT's rate-setting committee to leave the key rate untouched at the current 3.25 percent.
'A rate cut is unlikely, but if the rate is left unchanged, reactions from investors might be negative on inflation concerns while it would take longer for sluggish consumer spending to rebound,' he said.
PTT rose 6.00 baht to 340.00.
JAKARTA: Indonesian share prices finished 0.9 percent higher for a fourth straight session, as a liquidity-driven rally allowed the main index to continue its record-setting run.
Dealers said key gainers included auto giant Astra International as it bounced back from yesterday's selloff. The stock's gains were partly fuelled by news that it will pay an interim dividend on November 15.
Gains were capped by profit-taking in some blue chips, including state telecommunications firm Telkom.
The composite index closed up 22.91 points at 2,546.61. Volume was 4.36 billion shares worth 4.59 trillion rupiah (505.78 million dollars).
'When liquidity is so strong, valuation is no longer a key factor making a stock attractive,' said Irwan Junus, head of sales at DBS Vickers Securities.
However, after repeated records, investors have tended to be more selective in picking the big caps, he said.
'You cannot really point at which stocks are still attractive. Investors just pick what stocks they prefer from one day to the next,' he said.
Some brokerages have recently upgraded their target prices for selective big caps including Astra International and coal giant Bumi Resources.
Astra International rose 900 rupiah to 21,250.
MANILA: Philippine share prices closed 2.5 percent lower on a sell-off following six consecutive sessions of record-breaking runs.
Dealers said the market was taking a breather after gaining 8.4 percent since last week with some investors cashing in on gains.
The composite index fell 97.50 points to 3,776.00. A total of 3.6 billion shares worth 4.1 billion pesos (93.18 million dollars) changed hands.
The market gained 8.4 percent in the last six sessions, buoyed by an upbeat outlook on the domestic economy, a reduction in Philippine interest rates, easing concerns about the US economy and expectations of strong corporate earnings for the third quarter.
'No sector was spared as the market corrected the excessive exuberance in the last couple of trading sessions when we were outperforming other markets in the region,' said Jose Vistan of AB Capital Securities.
'Yesterday's run-up was too much. The market is now looking for a more stable level from which it will move up,' said Lawrence de Leon at Accord Capital Equities.
Most analysts believe the market will resume its rally once the third-quarter corporate earnings reporting season begins.
'With our strong economic fundamentals, the market is still in pretty good shape,' said Gomer Tan at Regina Capital Development Corp.
'The market could hit a resistance level of 3,800 and possibly the 4,000 mark before the end of the year, that's a very strong possibility,' he said.
Ayala Corp declined 20 pesos to 560.
WELLINGTON: New Zealand share prices fell 0.35 percent in mixed trading following a downbeat business confidence report.
The NZX-50 index fell 15.01 points to close at 4,280.24 on turnover worth 125.6 million dollars (95.6 million US).
The New Zealand Institute of Economic Research's quarterly survey of business confidence showed confidence was weak, although slightly improved from the previous quarter.
'Things were relatively quiet and mixed. Nothing for us to get a grip on, so we're just tending to drift,' said Stephen Wright of ASB Securities.
Telecom fell six cents to 4.54 dollars.
MUMBAI:Trading extended to 1045 GMT from 1000 GMT until October 9.
