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Wall Street lead lifts Asia shares
AFP - Thursday, January 14
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Wall Street lead lifts Asia shares
HONG KONG (AFP) - – Renewed optimism over an improving global economic picture helped Asian shares gain ground Thursday following a stronger lead from Wall Street, but fears lingered over China's monetary policy.
Sentiment was boosted by strong Australian jobs data and Wall Street's more positive outlook on the earnings season, shrugging off earlier disappointment.
After a broad sell-off in the previous session was sparked by Beijing's move to hike the amount banks must hold in reserves, Hong Kong gained 0.65 percent by the break Thursday and Shanghai was up 0.44 percent.
China shares were also lifted by plans to encourage consolidation between telecom, broadcast and Internet firms.
However some policy-sensitive banks and property developers were lower and analysts said Thursday's gains were only technical, with worries over further tightening at the forefront of investors' minds.
"China banks and developers may still witness some selling pressure ahead, as China policy risks still prevail," Linus Yip at First Shanghai told Dow Jones Newswires.
Sydney closed 0.61 percent higher, with sentiment buoyed by stronger-than-expected jobs data and record-breaking quarterly iron ore sales from mining giant Rio Tinto.
The benchmark S&P/ASX200 index gained 29.9 points to 4,898 on a bigger-than-expected fall in Australia's unemployment rate to 5.5 percent in December, down from November's revised figure of 5.6 percent.
Tokyo closed up 1.61 percent as shares in troubled carrier Japan Airlines (JAL) pulled out of their tailspin after several days of heavy losses.
The Nikkei-225 index climbed 172.65 points to 10,907.68.
JAL shares rose one yen to close at eight yen, following a plunge of almost 90 percent over the previous two days sparked by signs that the debt-ridden carrier is close to filing for bankruptcy protection and delisting its stock.
Seoul closed 0.86 percent higher, with the KOSPI up 14.36 points at 1,685.77. Singapore was 1.22 percent higher in afternoon trade.
Asia followed Wall Street's lead after the Dow Jones Industrial Average rose 0.50 percent to close at 10,680.77.
The rebound indicated "investors think the possibility that China's tightening would lead to other countries' tightening, or rate hikes to come earlier than expected, is low," Lee Jin-woo at Mirae Asset Securities in Seoul said.
The US market shook off disappointment over a weak earnings report from aluminium giant Alcoa earlier this week.
The Federal Reserve's Beige Book report, which said the US economy is seeing a broader improvement in activity, also boosted sentiment.
The euro was higher in Asia as investors anticipated upbeat factory data from the eurozone ahead of a monetary policy meeting by the European Central Bank.
The euro firmed to 1.4532 dollars in Tokyo morning trade from 1.4509 in New York late Wednesday. It also gained to 132.86 yen from 132.61. The dollar edged up to 91.42 yen from 91.38.
Oil rebounded in Asia after an overnight plunge on a key US Department of Energy report that indicated weaker demand in the world's biggest energy consumer.
New York's main futures contract, light sweet crude for delivery in February, rose 27 cents to 79.92 dollars per barrel.
London's Brent North Sea crude for February gained 28 cents to 78.59 dollars.
Hong Kong gold opened higher at 1,138.00-1,139.00 US dollars an ounce, up from Wednesday's close of 1,127.00-1,128.00 dollars.
In other markets:
-- Taipei closed up 93.42 points, or 1.14 percent, at 8,289.98.
The rise, which recovered much of the ground lost in the previous session, indicated the upward trend of the market remains unchanged, said Chen Yu-yu of Capital Securities.
-- Manila closed 0.81 percent, or 25.21 points, higher at 3,121.91.
The market was buoyed by advances on Wall Street and regional bourses. First Philippine Holdings rose 3.19 percent to 48.50 pesos, while Philippine Long Distance Telephone gained 1.67 percent to 2,745 pesos.
-- Wellington ended flat, with rises in Sydney supporting an otherwise lacklustre market.
The NZX-50 index rose 2.14 points to 3,278.33.
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