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Asia markets edge higher on US, Europe lead
AFP - Saturday, July 10
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HONG KONG (AFP) - – Asia-Pacific markets edged higher on Friday helped by positive news from Europe and the United States but Tokyo ended the week on a subdued note due to nervousness about weekend elections.
Tokyo's Nikkei index closed up 0.52 percent and the Topix index of all first-section shares up 0.02 percent.
Despite gains on Wall Street, traders were reluctant to push the Nikkei much higher after it jumped 2.76 percent on Thursday. For the week it was up 4.15 percent.
Many investors stayed on the sidelines ahead of an Upper House election that could bring fresh uncertainty after the honeymoon period enjoyed by new Prime Minister Naoto Kan. US corporate earnings results next week may give the index a boost however, analysts said.
"The Nikkei made a sharp jump to the 9,500 level yesterday but testing higher will be difficult as foreign investors' appetites are still not very strong," Kazuhiro Takahashi, general manager at Daiwa Securities Capital Markets, told Dow Jones Newswires.
Tokyo was also dampened by energy firm Inpex's announcement of a new share issue, although stronger euro and dollar exchange rates boosted exporters. Inpex plunged 12.81 percent while Canon gained 1.01 percent and Sony 0.90 percent.
Sydney gained 0.9 percent, boosted by mining and energy stocks.
"After early weakness where markets had been in negative territory, all sectors finished in the black with the energy, industrial, materials and financial sectors all convincingly higher," said IG Markets analyst Ben Potter.
Hong Kong closed up 1.64 percent with trade volume higher after recent lows, supported by Wall Street and with gains across property, banking and energy stocks. The index was up 2.37 percent for the week.
Shenzhen-based China Merchants Bank gained 3.97 percent and Bank of China 2.51 percent. Oil major CNOOC was up 1.24 percent and PetroChina up 2.34 percent -- both boosted by rising world oil prices.
Shanghai closed up 2.31 percent as a large influx of money not used to subscribe to Agricultural Bank of China's massive initial public offering returned to the market, dealers said.
Singapore's Straits Times Index climbed 0.69 percent to 2,917.17. Casino operator Genting Singapore fell 0.84 percent and Singapore Telecom gained 0.65 percent.
US stocks extended gains Thursday after a dip in new claims for US unemployment benefits and an upward revision of global growth by the International Monetary Fund.
The dollar was higher in Tokyo on renewed market confidence about global growth and the US economy.
The greenback inched up to 88.60 yen in the afternoon from 88.43 in New York late Thursday. The euro fell to 1.2680 dollars from 1.2691 after hitting an eight-week high in US trade overnight, but gained to 112.23 yen from 112.15.
Oil traded near 76 dollars, lifted by buoyant sentiment after the IMF bumped up its projections for global growth.
Stronger demand in the United States, shown by a drop in crude inventories, also helped push up prices.
New York's main contract, light sweet crude for August delivery, was up 46 cents at 75.90 dollars a barrel, and Brent North Sea crude was up 26 cents at 74.97 dollars.
Hong Kong gold ended at 1,198.00-1,199.00 US dollars an ounce, down from Thursday's close of 1,204.00-1,205.00 dollars.
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