HONG KONG - MOST Asian stock markets rose on Thursday after a move by central banks to boost liquidity in stormy financial markets balanced out a US$4 (S$5.47) rebound in oil prices and the constant fear of slowing growth and rising inflation.

The US, European, and Swiss central banks extended emergency lending facilities on Wednesday for investment banks and expanded other liquidity programs to ease credit market strains that have weighed on the global economy for a year.

The joint measures helped lift share prices in the United States and Europe, and were a factor in pushing up US bond yields and the US dollar.

'In the short term, markets could continue to see a bit of a rally but I still think that we probably haven't seen the low in equity markets,' said Mr Simon Doyle, head of fixed income and multi-asset at Schroder Investment Management in Australia.

'We're still working through the extent of the economic downturn. There is a protracted period of weakness to come and that's going to keep a very cautious tone in markets.'

MSCI's measure of Asia Pacific stocks excluding Japan was up 0.54 per cent by midmorning, but Japan's Nikkei average slipped 0.6 per cent, reversing a buoyant start and undoing most of Wednesday's gains.

KUALA LUMPUR

Share prices on Bursa Malaysia were higher at midmorning on selective nibbling of index-linked counters following the overnight gains on Wall Street, dealers said.

The KLCI was at 1,161.45 up 1.51 points at 9.30 am.

At 11.06 am, the benchmark Composite Index rose 1.75 points to 1,161.91.

HONG KONG

Hong Kong share prices opened 0.4 per cent higher on Thursday, tracking Wall Street's extended gains overnight on positive US economic data, dealers said.

The benchmark Hang Seng Index rose 87.95 points to 22,778.55.

Oil producer CNOOC led the gains with a 2.8 per cent rise after a rebound of crude prices. Hong Kong Exchanges and Clearing, the stock market operator, was down 1.2 per cent.

SHANGHAI

Chinese share prices fell on Thursday morning led lower by airlines after crude oil prices rebounded overnight, renewing concerns over rising fuel costs, dealers said.

The benchmark Shanghai Composite Index, which covers A and B shares, was down 29.55 points, or 1.04 per cent, at 2,807.12.

The Shanghai A-share index shed 31.08 points, or 1.04 per cent, to 2,944.66, while the Shenzhen A-share index fell 12.86 points, or 1.44 per cent, at 881.54.

TOKYO

Japanese share prices slipped 0.59 per cent in morning trade on Thursday, reversing early gains as investors turned cautious ahead of a raft of domestic company results and key US data, dealers said.

The Tokyo Stock Exchange's benchmark Nikkei-225 index fell 78.93 points to 13,288.86 by the lunch break. The broader Topix index of all first-section shares shed 12.62 points or 0.97 per cent to 1,290.37. -- AFP, REUTERS

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