Asia Watch

By DAILY MAIL REPORTER
Updated:

 

Aia markets were mostly higher on the back of the US Federal Reserve's decision to leave interest rates unchanged and the Nasdaq's record close.

Most markets were up by more than 1%, led by Tokyo, with investors and traders buoyed by the Fed's neutral bias, which means it will not be aggressive in looking to raise interest rates in the near future despite concerns over the threat of higher inflation in the US.

In Tokyo stocks reacted sharply amid a surge of buying inspired by the strength of US stocks, particularly technology issues, overnight.

The rally was led by telecommunications stocks, reflecting strong investor interest in two Internet-related issues listed on the new Mothers market for start-up firms, brokers said.

The Nikkei 225 Average jumped 381.55 points, or 2.11%, to close at 18,461.93. Hi-tech issues advanced broadly, including Fujitsu, Matsushita Electric Industrial and Hitachi. Sony posted a new lifetime high with a daily limit gain.

Sydney stocks moved higher in thin trade with the All Ordinaries climbing 39 points to 3146.3, a jump of 1.2%.

Software house Solution 6 rocketed to another record high at A$17.94, a jump of more than 12% on the day, after revealing its acquisition of British-based business software provider Pegasus Group for £30 million.

Hong Kong was at 16,302.6, up 0.3%, a rise of 53 points. Buying was focused on technology stocks with the heavily traded Pacific Century CyberWorks surging HK$0.80, or 9.14%, to HK$10.65 following news of its joint venture with Australian e-commerce company Spike Networks.

Buyers were cautious on blue-chips, which were mixed with HSBC up HK$0.50 at HK$106 and Cheung Kong unchanged at HK$98. After an initial rally Korea fell back and in early afternoon the Composite was down four at 955, a decline of 0.4%.

Telecommunications shares were slightly higher supported by news of telecoms giant SK Telecom's takeover of Shin-segi Telecom, analysts said.

The strong Nasdaq pushed Taiwan's technology-sensitive market up 104 points with the Weighted rising 1.3% to 8039.

Albert Lin, research vice president at Hotung Securities, said: 'Nasdaq's rally is really a strong boost to electron-ics.' South-east Asian markets were led by Thailand, which has been a laggard recently.

The SET rose 7.5 points, to 452.39, up 1.7%.

The rally was led by communications stocks fuelled by plans of some listed Thai communications corporations, including Shin Corp and United Communication, to expand into the Internet business. In Singapore the Straits Times Index was up 1.29%, or 30.57 points, to 2393.15, close to its record high set last week at 2400.25.

Singapore Airlines remained strong following its deal with Virgin Atlantic Airways and rose to a new high of S$18.80. Analysts have raised their earnings fore-casts following the deal and value the stock at S$20-S$23.

Jakarta stocks were higher with the Composite rising 5.54 points, or 0.84%, to 662.42 points.

Shares in Semen Cibinong surged more than 64% to 775 rupiah.

The Kuala Lumpur Composite fell 0.5% to 787.02.

Most watched Money videos