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Asian market highlight

TOKYO: Tokyo stocks jumped for a second straight day on Wednesday amid the biggest turnover in 29 months in response to the dollar's overnight jump against the yen.

The Nikkei average surged 706.01 points, or 4.05 percent, to 18,158.73, its highest close since 18,313.86 on February 13. It went as high as 18,299.71 in late morning.

The yen's weakness triggered huge buy orders among foreign investors and Japanese investors jumped on the bandwagon, even though many had not yet returned from summer holidays.

"Not only American but also European investors were placing big buy orders. I expect foreigners' buying will last for some time," said Takashi Kanasaki, director at Yamaichi Securities.

The turnover of 1.09 billion shares was the largest volume since 1.19 billion shares on April 5, 1993.

HONG KONG: Hong Kong stocks finished firmer on improved volume as U.S. funds hunted for bargains while local buyers remained cautious, brokers said.

The Hang Seng Index rose 53.74 points, or 0.60 percent, to 8,985.05, off its high of 9,054.34. It had fallen more than 52 points at the open on Wall Street's weakness.

Turnover was HK$3.17 billion ($409 million) from an adjusted HK$3.06 billion ($395 million) on Tuesday.

"Some short squeezes brought the main index above 9,050 before it backed down in late trade. Otherwise there was nothing special today," said Patrick Chia at Seapower Securities.

BANGKOK: Thai stocks ended another listless trading day slightly down with some impressive second quarter company results failing to inspire investors, brokers said.

The SET index eased 4.89 points, or 0.37 percent, to 1,309.64 in thin 2.87 billion baht ($115 million) turnover.

"It's been pretty quiet, results haven't set the market on fire," said one broker at a local house.

"Turnover was only 2.8 billion. Political and interest rate worries are still dominating peoples' minds and there's little foreign money coming in at the moment."

BOMBAY: Shares on the Bombay Stock Exchange (BSE) finished firmer on select purchases by foreign funds but traders said most players were in a holiday mood.

BSE's 30-share index rose 16.71 points to a provisional 3,425.82. The composite National index gained 7.89 points to a provisional 1,570.69.

"There was some general buying interest by foreign investors in A stocks but not much activity otherwise as most people are still in a holiday mood," said a trader at a foreign fund.

Traders said foreign institutional investors were buyers in auto firms TELCO and Mahindra & Mahindra. Other active A stocks included aluminium maker Hindalco and engineering and construction firm Larsen & Toubro.

COLOMBO: Finance and manufacturing stocks dominated trade on the Sri Lanka bourse, which closed a shade lower.

The Colombo Stock Exchange all share index fell 1.90 points to 751.80.

"Sellers of blue chips like NDB and Grains Elevators were institutional investors, who had bought the shares years ago," said Shanaka Jayasekera of John Keells Stock Brokers. "They were taking some profits."

JAKARTA: Jakarta shares prices fell in dull trade after selling hit almost across the board, brokers said.

The Jakarta composite index fell 4.62 points, or 0.90 percent, to 510.39.

"Foreign-triggered selling was noted not just in speculative property stocks, but also in blue chip shares following Indosat's overnight fall in New York," one broker with a foreign brokerage firm said.

Brokers said Indosat's overnight fall was partly attributed to generally weak market sentiment.

KUALA LUMPUR: Worries about interest rates and inflation pressured the Malaysian market lower, traders said, although selling eased in the afternoon.

The Kuala Lumpur Stock Exchange's Composite Index fell 9.77 points, or 0.94 percent, to 1,028.30.

Concerns over higher interest rates surfaced after Bank Negara borrowed six-month money on Monday and Tuesday. There were also lingering worries of the effect of cement price hike on the economy, traders said.

MANILA: Manila shares took a spill and closed lower, hit by the $1.75 drop of Philippine Long Distance Telephone Co in New York overnight, brokers said.

The index crashed through the 2,850-support level, ending at 2,845.22, a fall of 17.76 points, or 0.62 percent. The index shed 14.38 points on Tuesday.

"There was a lot of selling on the core issues and people turned to second-liners," Lito Vicencio at DBS Securities said.

SEOUL: South Korean stocks fell for the fifth consecutive day as selling pressures built up around positive first-half results, an indication that investors fear that earnings, and the economy, have peaked, brokers said.

The composite index eased 4.25 points, or 0.47 percent, to 904.44.

Blue chips were also affected by the continued weakness of the yen against the dollar. "Investors are worried that this will hit our exports," a Daewoo Securities broker said.

SHANGHAI: Shanghai's A shares were sharply higher on a fresh round of buying in Hong Kong-listed companies triggered by market rumours that Dongfang Electric Machinery would list shortly, brokers said.

The A index gained 17.843 points, or 2.29 percent, to 797.863 on heavy turnover of 4.606 billion yuan ($553 million).

"These days the market has been very active, inspired by frequent market-moving news. But technical charts have shown signs of over-buying," one broker said. "The market has become very risky with high speculative zeal."

Shanghai's B shares closed solidly down on a powerful technical correction that started on Monday. The B index lost 0.796 of a point, or 1.30 percent, to 60.456 on thin volume of 6.968 million shares.

SHENZHEN: Shenzhen A shares closed higher, buoyed by institutional buying of select counters, brokers said.

The A share index rose 2.09 points, or 1.45 percent, to 146.88 on turnover of 778.76 million yuan ($93.83 million).

Brokers said market talk about the Dongfang Electrical listing spurred buying interest in a handful of large-capital and low-priced counters.

Hard-currency B shares were stronger, with the B index putting on 0.20 of a point to 72.46. Turnover was HK$10.21 million ($1.32 million).

The composite index rose 1.91 points, or 1.36 percent, to 142.26 on total turnover of 930.26 million yuan ($112.08 million).

SINGAPORE: Singapore's key index closed lower but brokers said some late bargain-hunting in non-index shares helped lift prices.

The Straits Times Industrials Index fell 9.32 points, or 0.45 percent, to 2,053.23 after moving in a narrow range.

"Some institutional investors continued selling off blue chips to invest elsewhere in the region," a broker said.

Brokers said investors have not recovered from disappointing interim earnings growth of some blue chip companies.

SYDNEY: The Australian share market gave up early gains through the loss of buying support and some profit-taking.

The All Ordinaries index fell 7.4 points, or 0.35 percent, to 2,125.60. The September share price index contract was down nine points at 2,151, a 25.4-point premium to the physical market.

The disappearance of buyers in the afternoon session was cited as the major reason for the market closing near its lows for the day. Brokers said that the loss of buying support in the afternoon had taken the steam out of the market.

TAIPEI: Taiwan share prices continued a two-day rebound, rocketing 4.38 percent on buying triggered by the government's market-boosting packages, brokers said.

The index rose 200.98 points to 4,792.39, off a high of 4,794.23 high. Turnover was an active T$46.73 billion ($1.7 billion).

The market rebounded strongly despite a new series of Chinese missile tests near the island. Taiwan's Defence Ministry said the 10 days of tests began on Tuesday.

WELLINGTON: Investors in the New Zealand share market again showed their lack of interest as the market closed lower on light volume.

The NZSE-40 index fell 5.28 points, or 0.25 percent, to 2,120.25 on very slim volume of NZ$25 million ($16.4 million).

ANZ McCaughan broker Robert Wood said the Dow had gone up and down over the last two days but the New Zealand market had shown little inclination to move.

"I can't see any change for the rest of the week," he said.