Asian shares close mixed; China firm as investors bet on strong H1 earnings

Asian shares close mixed; China firm as investors bet on strong H1 earnings

	Published : Mon, 23 Jul 2007 11:51 By : Agencies Print this Story

MUMBAI (Thomson Financial) - Shares across the Asia-Pacific region closed mixed on Monday as markets reacted to Wall Street's pullback Friday, with Nikkei registering a 194-point drop and China shares closing sharply higher notwithstanding last week's interest rate hike.

The yen's appreciation against the dollar weighed on Japanese exporters. Investors were also nervous ahead of some key domestic corporate results this week.

The Nikkei 225 index closed down 194.29 points or 1 pct at 17,963.64.

The TOPIX index of all the Tokyo Stock Exchange first-section issues dropped 18.88 points or 1 pct to 1,757.29.

In Hong Kong, share prices closed at fresh record highs as investors picked up China stocks, particularly property plays, and some laggard blue chips following sharp gains on mainland bourses.

Dealers said there was relief that the overhang of China policy tightening has ended following Friday's announcement of an interest rate hike in China, and that investors are now looking forward to a strong first-half results announcements from major local firms in the next few weeks.

The Hang Seng Index closed up 73.66 points or 0.3 pct at 23,365.56, off a low of 23,152.54 and a new all-time high 23,389.94.

In South Korea, share prices hit a new closing high after investors downplayed the increase in interest rates in China.

The KOSPI closed 9.51 points or 0.5 pct higher at 1,993.05.

Shares in banks extended their gains as the release of their quarterly earnings reports approaches. Brokerage houses and insurers outperformed banks on rotational interest.

In mainland China, A-shares closed at a one-month high led by steel makers and banks. The Shanghai A-share Index was up 161.86 points or 3.8 pct to 4,419.95, while the Shanghai B-share Index rose 12.96 points at 299.53.

The benchmark Shanghai Composite Index, which covers both A- and B-shares listed on the Shanghai Stock Exchange, closed up 154.51 points or 3.8 pct at 4,213.36.

Jakarta shares closed higher led by miners and banks, with the main index finishing at a new all-time high, as investors remained upbeat about key corporate earnings for the first-half to June due this week.

The composite index closed up 13.81 points, or 0.6 pct, at a new record closing of 2,380.21, its intra-day high, and off a low of 2,344.123.

Australian shares ended down on profit-taking, taking their cues from the sell-off on Wall Street Friday. Concerns over the US subprime mortgage market again weighed on global equities, with US-focused Australian companies taking a hit.

The S&P/ASX 200 closed down 31.4 points or 0.5 pct at 6,390.4, retreating from Friday's record 6,421.8.

The All Ordinaries Index lost 28.9 points or 0.5 pct to settle at 6,427.8.

Singapore shares also closed lower on profit-taking after Wall Street's Friday fall.

The Straits Times Index (STI) was down 16.03 points or 0.40 pct at 3,635.35, off a low of 3,609.55.

Taiwan's Weighted Index closed up 35.67 points, or 0.4 pct, at 9,621.57 as rotational interest offset early losses caused by Wall Street's Friday dip.

Elsewhere, shares closed flat in the Philippines amid little activity as investors stayed on the sidelines before President Gloria Arroyo delivers her annual address to Congress later in the day. The composite index ended 0.49 point lower at 3,737.79.

Malaysian share prices closed mixed after a volatile session on late profit-taking in big caps after Wall Street's downturn Friday and China's monetary tightening last week.

The Kuala Lumpur Composite Index (KLCI) fell marginally by 0.83 points or 0.1 pct to 1,381.53 at the close.

The FTSE Bursa Malaysia 30-large cap index was up 2.38 points or 0.1 pct at 8,746.02, while the second board index inched up 0.30 point or 0.3 pct to 118.13.

TFN.newsdesk@thomson.com

apm/ypv/aku/hjp

The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.