Asian shares close mostly higher on Wall St gains

Asian shares close mostly higher on Wall St gains

	Published : Mon, 28 May 2007 08:50 By : Agencies Print this Story

HONG KONG (XFN-ASIA) - Shares across the Asia-Pacific region closed mostly higher after a firmer close on Wall Street last Friday, dealers said.

Tokyo shares closed higher as investors chased bargains after seeing sharp gains on Chinese markets today as well as on Wall Street Friday, dealers said.

Trading volumes were thin, with fewer foreign investors participating due to US markets being closed today for a public holiday.

The local market showed a muted reaction to news that Japan's farm minister, who has been embroiled in a scandal over political donations, died earlier today after a reported suicide attempt, dealers said.

The Nikkei 225 Stock Average closed up 106.38 points or 0.61 pct at 17,587.59, off a high of 17,630.37.

The TOPIX index of all first-section issues gained 8.84 points or 0.52 pct to 1,724.38, off the day's peak of 1,728.29.

'After the sharp losses on Friday, Tokyo shares started posting gains as the rebound on US stock markets gave investors some comfort,' said Hideo Mizutani, chief strategist at Sieg Securities.

'Also, steady Chinese markets supported investor sentiment here,' he added.

Australian shares ended flat as sentiment swung over the trading day following last week's sell-off, with limited selling concentrated in the banking and financial sectors after earlier gains, dealers said.

They said resource stocks supported the market from a larger sell-off after a rebound in base metal prices on Friday.

The S&P/ASX 200 closed down 1.4 points or just 0.02 pct at 6,251.4, moving away from last Monday's record finish of 6,369.0.

Hong Kong shares fell back in afternoon trade after a positive start following Wall Street's gains Friday, dealers said.

They said the market was cautious ahead of the expiry of Hang Seng futures contracts on Wednesday and with the US holiday today.

At 3.25 pm the Hang Seng Index was down 12.75 points or 0.06 pct at 20,507.91.

In mainland China, A-shares in Shanghai and Shenzhen closed up, with the main index at a new high on the back of strong follow-through buying, dealers said.

Metal and power stocks gained ground, they said.

The Shanghai A-share Index was up 95.11 points or 2.17 pct at 4,476.67 and the Shenzhen A-share Index was up 29.70 points or 2.30 pct at 1,322.01, a new high.

Seoul shares closed higher, with the main index touching another record, as retail investors built positions following a firmer Wall Street and on expectations that the market is set for a sustained rally, dealers said.

The market remained strong throughout the session, with gains in key regional markets also providing a boost, they noted.

The KOSPI index closed up 13.35 points or 0.81 pct at a record 1,657.91. The low for the day was 1,646.15 and the high was 1,658.43.