Source : The Straits Times, Aug 27, 2007
Asian stocks rose on Monday, taking their cue from a Wall Street rally triggered by surprisingly strong economic data.
The solid US housing and durable goods numbers on Friday helped quell fears about the impact of the worst credit market turmoil of the decade on the outlook for global growth and corporate profits.
This renewed investors' appetite for riskier assets but weighed on Japanese government bonds.
'Investors will certainly welcome the sense of relative calm returning to global financial markets,' said Guy Hutchings, chief executive officer at MFS Investment Management.
'Investors should still prepare for further uncertainty in weeks ahead and until such time as losses related to the subprime crisis become apparent,' he added.
TOKYO
Japanese share prices closed 0.32 per cent higher on Monday as early gains shrank in late trading amid growing caution ahead of new US housing data, dealers said.
The Tokyo Stock Exchange's benchmark Nikkei-225 index of leading shares rose 52.42 points to close at 16,301.39, off the day's high of 16,413.79 touched in early afternoon trade.
The broader Topix index of all first-section shares closed up 1.91 points or 0.12 per cent at 1,587.76.
The market was up more than one per cent in morning trade after solid gains on Wall Street on Friday following surprisingly strong US housing data.
But dealers said the market grew cautious looking to further housing data due out later on Monday in the United States.
Dealers said the market was not overly impacted by reports of new members in Prime Minister Shinzo Abe's cabinet as it already saw the premier as weak following a crushing election defeat last month.
CHINA
China's main stock index surged 1.40 per cent to a fresh record high on Monday, buoyed by the blue chips favoured by mutual funds, although most stocks fell on profit-taking.
The Shanghai Composite Index ended the morning at 5,179.009 points, off an intra-day high of 5,192.061. But losing Shanghai stocks outnumbered gainers by 493 to 341.
Turnover in Shanghai A shares climbed to 94.0 billion yuan (S$18.9 billion) from Friday morning's 84.3 billion yuan because of funds' aggressive buying of banking and steel blue chips in particular.
HONG KONG
Hong Kong share prices finished the Monday morning session 1.97 per cent higher as index heavyweight China Mobile hit a record high on its strong gains in the United States, dealers said.
They said the stock was also boosted on hopes that it would be a major beneficiary from mainland individual investments in Hong Kong under Beijing's eased overseas investment rules.
The Hang Seng index closed the morning up 450.5 points at 23,372.39, off a high of 23,467.39 and a low of 23,285.71. Turnover was heavy at HK$67.43 billion(S$13.1 billion).
The Hang Seng China Enterprises index was up 553.14 points or 4.2 per cent at 13,731.23.
KUALA LUMPUR
Share prices on Bursa Malaysia were firmer at mid-morning today led by gains on selected counters like Bumiputra-Commerce after announcing stronger half-year financial results last Friday.
At midday the benchmark Composite Index rose 7.77 points to 1,281.29. -- REUTERS, BERNAMA, AFP
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