Asia Roundup: US leads keep mood positive

by **hlk** Fri 26 Aug 2011, 08:08

HONG KONG: Asian markets surged yesterday, following another rally on Wall Street and ahead of a speech by Federal Reserve chief Ben Bernanke that many hope will outline plans to kickstart the ailing US economy.

The more positive mood - helped by a strong batch of US manufacturing data - saw safe haven assets fall, with gold tumbling further from its record high above US$1,900 and the yen weakening.

Regional firms with links to Apple slipped while its rivals rose after Steve Jobs announced his resignation of the US computer giant on Wednesday.

Traders took their cue from a third straight day of gains on Wall Street overnight where the Dow Jones Industrial Average rallied 1.29 per cent, the S&P 500 rose 1.31 per cent and the Nasdaq added 0.88 per cent.

Tokyo stocks closed 1.54 per cent higher after Wall Street rose overnight and on a weaker yen versus the dollar.

The benchmark Nikkei-225 index closed 132.75 points higher at 8,772.36. The Nikkei expanded its gains as investors welcomed the stability of the yen against major currencies.

In Shanghai, the composite index ended up 74.17 points, or 2.92 per cent, at 2,615.26.

But analysts said the strong gains may not continue sessions as investors remained nervous about the possibility of further monetary tightening by the government.

In Sydney, Australian stocks gained 1.09 per cent, buoyed by a rally on Wall Street, focused on corporate earnings results. At the close the benchmark S&P/ASX 200 was 45.2 points stronger at 4,212.8.

In Seoul, shares closed 0.56 per cent higher boosted by major technology shares as investors bet Asian tech firms would gain by the departure of Apple chief executive Steve Jobs. The benchmark Kospi gained 9.80 points to 1,764.58 on heavy institutional buying.

In other markets:

* Taipei fell 1.23 per cent, or 92.06 points, to 7,410.87.

* Manila closed 0.54 per cent, or 23.76 points, lower at 4,342.69.

* Jakarta closed flat, edging down 2.65 points to 3,844.37.

* Bangkok fell 2.05 per cent or 21.43 points to 1,025.00.

* Mumbai 0.85 per cent, or 138.65 points, to 16,146.33. - AFP