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Asian shares lifted by Wall Street rally
AFP - Tuesday, September 28
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HONG KONG (AFP) - – Asian stocks ended higher on Monday as traders were boosted by a rally on Wall Street while Japanese exporters were higher on hopes for further measures to cool the soaring yen.
Tokyo jumped 1.39 percent, or 131.47 points, to end at 9,603.14 and Sydney added 1.59 percent, or 73.4 points, to 4,675.3.
Hong Kong rose 1.00 percent, or 221.41 points, to 22,340.84 and Shanghai added 1.41 percent or 36.42 points, to close at 2,627.97.
Regional investors took their cue from the United States, where the Dow jumped 1.86 percent on Friday on upbeat sentiment after data showed an improvement in sales of big-ticket items.
The government figures revealed that excluding transportation equipment, mainly aircraft parts, orders of items such as household appliances rose by a more-than-expected two percent last month.
The data allayed recent fears of a double dip recession in the world's biggest economy as manufacturing is seen as one of the main engines driving the recovery.
In Japan exporters led the gains on speculation authorities would step in to the currency markets for a second time to push the yen down. A weaker yen helps exporters to become more competitive overseas and boosts their income when repatriating earnings.
Analysts said Tokyo could intervene this week before companies close their books for the quarter, while there was also talk of the Bank of Japan introducing new monetary easing measures.
And the government ordered plans to be drawn up for a supplementary budget worth up to 59 billion dollars to boost the country's struggling economy.
Yumi Nishimura, deputy general manager at Daiwa Securities Capital Markets, told Dow Jones Newswires that "there is a sense of expectation for (currency market) intervention if the dollar falls below 84 yen".
Japan on September 15 intervened in the foreign exchange markets for the first time in six years as the dollar sank to a 15-year low of 82.86 against the yen. The greenback surged into the high 85-yen range before easing last week.
In Tokyo on Monday the dollar sat at 84.20 yen, unchanged from New York late on Friday.
The dollar has been unable to make many inroads on the yen amid rumours the US Federal Reserve will ease monetary policy to kickstart the economy.
Japan's unilateral intervention was met with criticism in the United States and Europe, whose trade is boosted by having weaker currencies.
The euro fetched 1.3471 dollars in Tokyo afternoon trading, marginally down from 1.3488 dollars in New York late Friday, and fell to 113.47 yen from 113.60.
Oil was up in afternoon trade, with New York's main contract, light sweet crude for November delivery, rising 11 cents to 76.60 dollars a barrel.
Brent North Sea crude for delivery in November was up three cents to 78.90 dollars.
Gold closed at 1,298.00-1,299.00 US dollars an ounce in Hong Kong, up from Friday's closing price of 1,295.50-1,296.50 dollars.
In other markets:
-- Singapore closed up 0.67 percent, or 20.78 points, at 3,113.46.
Wilmar International slipped 1.46 percent to 6.08 Singapore dollars and Singapore Telecommunications fell 0.32 percent to 3.13.
-- Seoul closed 0.77 percent, or 14.23 points, higher at 1,860.83.
-- Taipei rose 0.31 percent, or 24.92 points, to 8,191.54.
Taiwan Semiconductor Manufacturing Co was 1.0 percent higher at 60.7 Taiwan dollars while MediaTek, the island's leading IC design house, gained 1.35 percent at 452.0.
-- Kuala Lumpur closed up 0.93 percent, or 13.52 points, at 1,464.71.
Budget carrier AirAsia rose 4.7 percent to 2.25 ringgit while CIMB bank climbed 2.0 percent to 8.25 as tobacco giant BAT Malaysia slid 1.6 percent to 48.48.
-- Jakarta rose 2.07 percent, or 70.41 points, to 3,468.04.
Chemical company Tri Polyta rose 13 percent to 3,675 rupiah, car maker Astra International jumped 3.8 percent to 58,100 and state-owned mining company Aneka Tambang increased 2.2 percent to 2,325.
-- Manila closed 1.08 percent, or 43.96 points, higher at 4,122.83.
Energy Development picked up 4.3 percent to 6.33 pesos, Metro Pacific Investments added 2.7 percent to 3.80 and SM Investments advanced 1.9 percent to 540.
-- Wellington rose 0.87 percent, or 27.98 points, to end at 3,239.14.
Construction company Fletcher Building ended up 0.8 percent at 8.53 New Zealand dollars, Telecom rose 0.5 percent to 2.04 and power company Contact Energy gained 1.6 percent to 5.81.
-- Bangkok rose 1.11 percent, or 10.57 points, to 962.47.
Banpu gained 6.00 baht to 708.00 while PTT added 4.00 baht to 294.00.
-- Mumbai rose 0.36 percent, or 72.20 points, to close at 20,117.38.
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