Asian shares close higher on positive economic news

Asian shares close higher on positive economic news

	Published : Wed, 24 Jan 2007 08:39 By : Agencies Print this Story

HONG KONG (XFN-ASIA) - Shares across the Asia-Pacific region closed higher on positive economic data and optimism about corporate earnings, dealers said.

Tokyo shares closed firmer, with investors heartened by a rebound on Wall Street overnight and expectations that Japanese companies will increase their forecasts of earnings, dealers said.

The blue-chip Nikkei 225 Stock Average closed 98.83 points or 0.57 pct higher at 17,507.40, off a high of 17,553.03.

The TOPIX index of all first-section issues ended the session 7.85 points or 0.45 pct higher at 1,738.61, off a high of 1,745.88

Hideo Mizutani, chief strategist at Sieg Securities, said: 'Share prices were supported by the market's view that many corporations will revise upward their earnings forecasts for this fiscal year on the softer yen.'

He said exporters in particular, including auto companies, were expected to benefit from the weaker yen.

Mitsushige Akino, chief fund manager at Ichiyoshi Management, said share prices would attempt to reach even higher levels after next week, when the results season begins in earnest.

Australian shares closed at a third consecutive record high as investors bought resource stocks after base metal prices jumped in London trading overnight, dealers said.

Early gains were extended following consumer inflation data for the December quarter which fell 0.1 pct against the market consensus of a 0.2 pct rise. The annual rate fell to 3.3 pct from 3.9 pct over the year to September.

Investors' sentiment was also boosted by the Reserve Bank of Australia's core inflation measures, the weighted median and trimmed mean, both rising just 0.5 pct in the fourth quarter from the 0.8 pct and 0.7 pct respective increases in the September quarter.

The S&P/ASX 200 advanced 33.8 points or 0.59 pct to a record close at 5,768.8, beating yesterday's record closing level of 5,735.0.

The key index closed off a new intra-day record high of 5,776.1 and above the low of 5,742.2.

The broader All Ordinaries index ended up 35.0 points to a fresh record close of 5,749.1, also beating yesterday's previous record close of 5,714.1 and setting a fresh intra-day record of 5,755.9.

Hong Kong shares were higher in afternoon trade but off their fresh all-time high of 20,971.46 touched in the morning, as China Mobile extended its gains on the back of some broker upgrades and hopes of strong earnings, dealers said.

They said investors also took note of Wall Street's positive performance overnight.

At 3.20 pm the Hang Seng Index was up 38.25 points or 0.18 pct at 20,807.95.

In mainland China, A-shares in Shanghai and Shenzhen closed higher on the back of sustained capital inflows with financial stocks and real estate developers in favor, dealers said.

The Shanghai A-share Index rose 27.82 points or 0.90 pct to 3,125.38 and the Shenzhen A-share Index was up 4.36 points or 0.60 pct at 732.55, a new all time high.

Seoul shares closed sharply higher, backed by heavy program buying and further interest by foreign investors, dealers said.

With the overnight rebound on Wall Street supporting overall sentiment, the market was firm throughout the session, they noted.

Steel makers, retailers and brokerages posted solid gains.

The KOSPI index closed up 19.97 points or 1.47 pct at 1,383.07, after moving between 1,369.02 and 1,383.75.