Asian shares close higher on bargain hunting, positive sentiment

Asian shares close higher on bargain hunting, positive sentiment

	Published : Tue, 06 Feb 2007 08:56 By : Agencies Print this Story

HONG KONG (XFN-ASIA) - Shares across the Asia-Pacific region closed higher on bargain hunting and positive sentiment relating to earnings reports, dealers said.

Tokyo shares closed higher, rebounding from yesterday's sharp losses after investors sought bargains, with buying encouraged by the tone of corporate earnings reports, dealers said.

But the gains were capped because investors were waiting for more earnings reports and for the meeting this weekend of G7 finance ministers and central bank governors, dealers said.

The blue-chip Nikkei 225 Stock Average closed 62.06 points or 0.36 pct higher at 17,406.86, off a high of 17,433.27.

The broader TOPIX index of all first-section issues closed 16.14 points or 0.94 pct higher at 1,732.42, off a high of 1,734.10.

Ryuta Otsuka, a strategist at Toyo Securities, said the market's rebound had not been as strong as it could have been because investors were waiting for events such as the G7 meeting and the special quotation for settling futures and options contracts. Some investors remained cautious because the yen's weakness may be discussed at the G7 meeting, he said.

However, he added: 'Generally solid earnings results supported the market, although corporations' conservative forecasts deterred investors from further buying of shares.'

Australian shares closed at new record highs as investors bought blue chip stocks including miners and banks, dealers said.

They said investor sentiment remains strong as the reporting season picks up steam tomorrow.

Dealers said the banking sector was supported by expectations the Reserve Bank of Australia will announce tomorrow that interest rates will remain unchanged at 6.25 pct following today's monthly policy meeting.

The S&P/ASX 200 ended up 48.4 points or 0.83 pct at a record 5,870.5, surpassing Friday's record of 5,831.5. The key index also hit a fresh intra-day record of 5,871.5. The low for the day was 5,828.6.

Hong Kong shares were higher in afternoon trade on a technical rebound led by blue chips and laggard stocks, dealers said.

At 3.25 pm the Hang Seng Index was up 227.51 points or 1.11 pct at 20,683.13.

In mainland China, A-shares in Shanghai and Shenzhen closed higher on bargain-hunting with banks and metal companies in demand, dealers said.

The Shanghai A-share Index was up 65.20 points or 2.38 pct to 2,809.24 and the Shenzhen A-share Index was up 10.77 points or 1.61 pct at 678.61.

Seoul shares closed higher as foreign investors continued to build positions, dealers said.

The market was listless in early trade due to the mixed close on Wall Street overnight and some caution ahead of the expiry of options contracts.

However it rebounded from the early losses to close near its intraday high, and at its strongest level in over a month, on the back of foreign interest with steel makers, builders and lenders posting solid gains.

The KOSPI index closed up 10.63 points or 0.75 pct at 1,428.58, after moving between 1,414.58 and 1,428.91.