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FOCUS-Japan shares slip but Taiwan up on easing tension

SINGAPORE: Taiwan's share market rallied on Thursday on easing worry over post-election tension, but Japanese stocks ended slightly lower as investors adjusted positions before the end of the fiscal year.

Seoul shares also finished down, hit by profit-taking, but Hong Kong's key index was trading higher.

The U.S. dollar was steady against the yen in afternoon Tokyo trade with players cautious about driving the dollar too high before the release of the Bank of Japan's quarterly "tankan" corporate sentiment survey on April 3.

Tokyo's benchmark Nikkei average ended down 0.15 percent at 19,704.60 as investors took profits, sold cross-held shares and adjusted their portfolios ahead of the fiscal year-end on March 31.

Declines were limited by the 3.25 percent gain of the U.S. Nasdaq composite index overnight and the launch on Friday of a couple of new investment trusts, brokers said.

HONG KONG UP

Hong Kong stocks were modestly higher in afternoon trade led by Hutchison Whampoa Ltd after the blue chip conglomerate said overnight it had sold a chunk of its stake in Vodafone AirTouch Plc.

The benchmark Hang Seng Index was up 0.74 percent at 17,676.76 in mid-afternoon.

The blue chip index surged as much as 1.8 percent shortly after the open on the news Hutchison had sold 925 million Vodafone shares set to bring in 3.2 billion pounds (HK$39 billion), in what dealers said was the world's biggest single placing of shares.

TAIWAN HIGHER ON EBBING POLITICS WORRY

Taiwan stocks rallied for the third straight session, closing 5.12 percent higher thanks to the overnight rally on Nasdaq, heavy foreign fund buying and easing worries over political uncertainty following Saturday's presidential election win by opposition candidate Chen Shui-bian.

The TAIEX closed up 464.48 points at 9,533.87.

Several brokers said they expected the post-election rally to continue in coming sessions, but noted heavy short-term profit-taking pressure, especially as the index approached initial resistance at around 9,600.

SOUTH KOREA, AUSTRALIA LOWER

South Korea's benchmark index closed lower on futures-linked selling and profit-taking by institutional investors ahead of their pending fiscal year-end, analysts said.

The Korea Composite Stock Price Index (KOSPI) ended 1.68 percent lower at 867.62.

The Australian share market finished on a weak note as a retreat among blue chip stocks pulled the market back from record territory.

The benchmark All Ordinaries Index closed just under one percent lower at 3,243.5 as investors managed to wipe out all of Wednesday's Wall Street inspired rally.

DOLLAR STEADY, EURO QUIET ON RATES

The dollar was quoted at 107.45/47 yen, off its earlier high at 107.63 yen on profit-taking but up from 107.02 yen in New York late on Wednesday.

Activity in the euro was very quiet near $0.9600, as the market searched for more clues to Europe's interest rate outlook following the U.S. Federal Reserve's 25 basis-point hike on Tuesday. -Reuters