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Asian shares mixed as oil above $104
AFP - Friday, February 18
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Asian shares mixed as oil above $104
HONG KONG (AFP) - – Asian stocks moved higher on Thursday after the Federal Reserve raised its growth forecast for the US economy, while increasing tensions in the Middle East sent oil even higher.
Strong corporate earnings reports provided support as markets grow more optimistic about the global outlook.
Tokyo rose 0.26 percent, or 28.35 points, to 10,836.64 and Sydney added 0.17 percent, or 8.2 points, to end at 4,938.4.
Hong Kong closed 0.63 percent, or 144.87 points, higher at 23,301.84, while Shanghai gained 0.10 percent, or 3.06 points, to reach 2,926.96, its highest since December 14.
However, the gains in Hong Kong and China were capped after the municipal government in Beijing imposed fresh restrictions on home-buyers in the latest attempt to rein in soaring house prices.
Stocks were given a strong cue by Wall Street, where the Dow closed on Wednesday 0.50 percent higher after the Fed upgraded its estimate for the world's biggest economy.
The Fed predicted gross domestic product would rise 3.4-3.9 percent this year, versus a November prediction of 3.0-3.6 percent.
The Fed's top policy panel decided the recovery is now on a firmer footing, with consumers and businesses spending more, despite still-high unemployment, which it said would sit around 8.8-9.0 percent.
With corporate results creating optimism among dealers, Qantas in Sydney soared 5.44 percent after the carrier posted a four-fold increase in half-year net profits to Aus$241 million ($240.6 million). The results came despite recent safety scares with the airline's flagship A380 superjumbos.
"This result was achieved while overcoming significant operational challenges during the period including disruptions to the A380 network from November," the airline said.
The result followed miner BHP Billiton's announcement Wednesday of a 72 percent surge in half-year net profit.
Asian tech stocks were given a lift after computer giant Dell reported in the United States that its fiscal fourth-quarter earnings nearly tripled on strong demand from corporate customers -- an indicator of economic revival.
However, crude prices jumped due to supply fears caused by increased tensions in the Middle East after Israel said Iran was sending two warships into the eastern Mediterranean, compounding worries about unrest in the region.
The Israeli announcement came as violence erupted in Bahrain, with reports of two killed as security forces attacked demonstrators in Manama. There were also demonstrations in Libya and Iran.
On oil markets, Brent North Sea crude for April delivery was up 52 cents at $104.30 and New York's main contract, light sweet crude for delivery in March, rose 27 cents to $85.26 per barrel.
"Geopolitical tensions in the Middle East are keeping oil prices up," Victor Shum, senior principal of Purvin and Gertz energy consultants in Singapore, told AFP.
"This is all due really to the news that Iran is going to send ships to the Suez Canal, and also other news about people protesting in other countries besides Egypt."
The dollar traded at 83.57 yen in Tokyo compared to 83.67 in New York late Wednesday.
The euro rose to $1.3596 from 1.3570. The common currency firmed to 113.62 yen from 113.50.
Gold closed at $1,379.00-$1,380.00 an ounce in Hong Kong, up from Wednesday's close of $1,375.50-$1,376.50.
In other markets:
-- Singapore fell 0.38 percent, or 11.89 points, to 3,082.83.
Casino play Genting Singapore was down 0.98 percent to Sg$2.02 and container shipping firm Neptune Orient Lines advanced 3.3 percent to Sg$2.20.
-- Seoul closed 0.60 percent, or 11.89 points, down at 1,977.22.
-- Taipei fell 0.33 percent, or 29.08 points, to 8,683.88.
Leading design house MediaTek lost 2.59 percent to Tw$339.0 while Taiwan Semiconductor Manufacturing Co was 0.55 percent higher at Tw$72.5.
-- Kuala Lumpur ended up 0.15 percent, or 2.26 points, at 1,508.56.
Telco Axiata gained 1.80 percent to 5.08 ringgit, while palm oil giants IOI Corp lost 2.30 percent to 5.58 and KL Kepong was down 0.30 percent 21.80.
-- Jakarta rose 0.52 percent, or 17.60 points, to 3,434.39.
Cement producer Gresik jumped 3.6 percent to 8,700 rupiah and energy firm Medco soared 2.3 percent to 3,300 while Bank Danamon increased 1.6 percent to 6,450.
-- Manila rose 1.43 percent, or 54.34 points, to 3,866.38.
Alliance Global Group was up 1.9 percent at 11.84 pesos and Metropolitan Bank & Trust gained 1.9 percent to 60.15 pesos, while Aboitiz Equity added 1.8 percent to 39 pesos.
-- Wellington closed up 0.33 percent, or 11.22 points, at 3,395.70.
Fletcher Building rose 1.3 percent to NZ$8.34 and Telecom ended flat at NZ$2.23, while New Zealand Refining Co. fell 2.0 percent to NZ$5.00.
-- Bangkok gained 1.37 percent, or 13.50 points, to end at 995.57.
Coal miner Banpu rose 2.7 percent to 760 baht and Kasikornbank was up 0.9 percent at 118. Energy firm PTT rose 1.5 percent to 334.00.
-- Mumbai rose 1.13 percent, or 205.92 points, to 18,506.82, as concerns about further monetary tightening eased following data showing that food inflation had hit a two-month low.
The Mumbai market has jumped nearly six percent in a five-day-rally due to bargain hunting after a sharp bout of selling last week.
Food inflation, measured on a weekly basis, fell to 11.05 percent for the week ending February 5 from a year earlier, according to commerce ministry figures.
Bank, telecom and engineering stocks rose.
Private bank HDFC rose 4.21 percent, or 88.2 rupees, to 2,185. Engineering giant Larsen and Toubro rose 2.85 percent, or 48.5 rupees, to 1,698.
The world's seventh largest steel maker Tata Steel rose 2.16 percent, or 13.85 rupees, to 654.9 after the firm said its quarterly profit more than doubled for the three months to December, from 4.72 billion rupees a year earlier.
Software exporter Satyam Computer Services rose 1.44 percent, or 0.9 rupees, to 63.55, after it said it will pay $125 million to settle a US class action suit.
-- Dow Jones Newswires contributed to this report --
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