Wednesday January 6, 12:15 am Eastern Time
Asian Markets Power Ahead, Shadow Wall St
SINGAPORE, Jan 6 (Reuters) - Most Asian stock markets rallied on Wednesday, stoked up by a surge on
Wall Street and hopes of lower regional interest rates.
Manila and Singapore climbed more than three percent, Bangkok rose two percent and most other Asian
markets added at least one percent as investors focused on strength in U.S. shares.
Hong Kong's Hang Seng index was up 1.59 percent at 10,048.26 points by the end of the morning session,
taking its cue from a 1.38 percent rise in the Dow Jones industrials overnight.
''Hong Kong stocks are following Wall Street in moving up and the market is more optimistic that Hong Kong banks will cut interest rates soon,'' said
Sean Li, associate director at Amsteel Securities.
Japanese traders kept an eye on the yen which struck its highest level against the dollar since September 1996 overnight.
At midday, the benchmark Nikkei average was up 0.76 percent at 13,333.42. Although the dollar recovered some ground in early Tokyo trade, lingering
fears that it could tumble again deterred investors from actively buying stocks, traders said.
''The primary interest remained in the currency market. If the dollar falls below the 110 yen level, the Nikkei could fall below 12,800, because it would
have a negative impact on exporters,'' said Susumu Inada, chief investment officer at Tokyo Kaijo Asset Advisory Co.
By 0440 GMT, the dollar was trading at 112.13/23 yen, compared with 111.36/39 in New York late on Tuesday.
But the mood was more upbeat elsewhere in Asia.
Singapore's benchmark Straits Times index surged 3.43 percent to 1,433.84. Dealers attributed the strength to broad-based buying by funds after the
holiday break. ''The funds are back,'' said a dealer with a Singapore brokerage.
Positive economic news conspired with a rise in the Philippine peso to boost Manila stocks, driving the country's key index 3.63 percent higher to
2,079.75 by the close.
''All the ingredients for a strong rally were there,'' said Jose Vistan Jr, analyst at Dharmala Securities Phils Inc.
''There was a rally in the Dow, momentum from yesterday's rally, positive sentiment created by the strong performance of the peso and the clincher was
basically the December inflation rate which was much lower than the consensus,'' he said.
Philippine year-on-year inflation stood at 10.4 percent in December, down from 11.2 percent in November and below the 11.1 percent figure forecast in a
recent Reuters poll.
Strong offshore performances sent Australia's benchmark All Ordinaries index up just over a percent to 2,844.5 by midday, while New Zealand's index
ended 0.78 percent higher at 2,131.77.
A surge in telecommunications and finance shares led Bangkok up 2.59 percent to 388.31 in early trade, while retail and local buying in Malaysian blue
chips helped Kuala Lumpur manage a 1.75 percent gain to 577.81 by the midday break.
Taiwan stocks rebounded to a higher finish after a dramatic dip below 6,000, but brokers said they feared the rise would be shortlived after state-linked
funds backed off from the market. Taiwan's key index ended up 0.77 percent at 6,199.91.
Korea's composite index added 1.24 percent to 605.99 by the lunch break, held above the psychologically significant 600-point level by retail buying
despite some consolidation.
''We are burdened by the recent rally. There are many profit-takers waiting around the 600-point level,'' said So Byung-ki, a market analyst at the Korea
Stock Exchange.
A positive response to Indonesia's 1999/2000 budget, announced on Tuesday, helped Jakarta's key index edge up 1.81 percent to 416.11, buoyed by
buying from foreign investors. |
