Asian shares higher in midday trade on technical rebound, easing yen strength |
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Tue, 06 Mar 2007 05:16
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HONG KONG (XFN-ASIA) - Asian shares were higher in midday trade on a technical rebound, with Tokyo leading the way after the dollar stabilised against the yen amid easing yen carry trades, though investors remain nervous about the risk of further losses after the recent heavy global sell-off, dealers saidIn Tokyo, share prices were higher on bargain-hunting following the recent steep falls, with gains underpinned by the relatively stable yen, which eased investor concerns over exporters' earnings, dealers said.However, the buying momentum was limited amid continuing uncertainties over the prospect for Wall Street and other key Asian stock markets, as well as their impact on the yen in foreign exchange trading, they added.At 12.48 pm, the blue-chip Nikkei 225 Stock Average was up 213.87 points or 1.29 pct at 16,856.12.The TOPIX index of all the issues listed on the Tokyo Stock Exchange's first section was up 28.15 points or 1.69 pct at 1,690.86.The extent of the index's rebound is modest compared with the 8.6 pct loss it suffered during the five straight days of declines, dealers said.'Bargain-hunting was expected in the wake of the recent broad declines and the Nikkei's fall near the key 16,500 level. The diminution of fears that Nikko Cordial may sell off its equities holdings apparently helped discourage speculative selling,' said a trader at a Japanese firm.Hong Kong shares were sharply higher in a rebound after yesterday's 4 pct drop, with investors taking note of a firmer Tokyo bourse and stronger markets elsewhere in the region, dealers said.At 11.45 am, the Hang Seng index was up 282.99 points or 1.52 pct at 18,947.77, off a low of 18,876.62 and a high of 18,992.38.Turnover was 25.43 bln hkd.'The market saw a rebound after steep falls yesterday. Large caps like HSBC and select China financials saw strong buying interest after posting huge losses in recent sessions,' said Castor Pang, strategist at Sun Hung Kai Financial group.A-shares in Shanghai and Shenzhen ended the morning slightly higher on bargain-hunting, with financial issues and steelmakers gaining ground, dealers said.The benchmark Shanghai Composite Index, which covers both A- and B-shares listed on the Shanghai Stock Exchange, ended the morning up 13.75 points at 2,799.06.The Shanghai A-share Index was up 14.46 points to 2,941.06 and the Shenzhen A-share Index was up 0.42 points at 757.81.Shares in Taipei were higher on the back of a technical rebound after recent heavy losses triggered by a regional sell-off and domestic political concerns, dealers said.The market took its lead from the bounce in Tokyo and Seoul this morning, shrugging off Wall Street's continued decline overnight, they said.As of 11.46 am, the weighted index was up 86.31 points or 1.18 pct at 7,430.87, after moving between 7,349.98 and 7,430.87, on turnover of 68.72 bln twd.Mega International Investment Services assistant vice president Alex Huang attributed yesterday's plunge largely to an overreaction to president Chen Shui-bian's remarks about Taiwan needing formal independence.'Some sort of a technical rebound is only to be expected this morning,' Huang added.Singapore share prices staged a technical rebound after having fallen nearly 10 pct in a week-long correction since last Tuesday following steep losses across regional bourses and on Wall Street, dealers said.At 11.51 am, the Straits Times Index was up 43.26 points or 1.45 pct at 3,025.55Volume was 894.77 mln shares worth 1.19 bln sgd.Kuala Lumpur shares staged a mild rebound, led by blue-chips, in line with the firmer regional bourses, though investor confidence remains edgy as the local bourse was among the worst hit in last week's meltdown, dealers said.The key index rose by 15 points in early trade but gains were quickly eroded, they added.At 11.51 am, the KLCI was up 16.95 points at 1,127.64, after hitting a low of 1,113.
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AFX European summary - midday jan 18 