Asia Roundup: Gains amid cautious sentiment

by **hlk** Wed 27 Jul 2011, 08:18

HONG KONG: Asian stocks rose yesterday although trade was cautious as investors focused on Washington where lawmakers are struggling to hammer out a deal to avert a catastrophic US default.

The dollar touched a four-month low against the yen in early Tokyo trade after an address to the nation by President Barack Obama failed to indicate any progress on a debt agreement.

Tokyo's Nikkei Index 225 Index ended 0.47 per cent, or 47.71 points, higher at 10,097.72 as the yen's strength pared gains made on the back of a batch of upbeat earnings reports on Monday as well as optimism over other results due this week.

Solid corporate earnings helped buoy the Nikkei, while gains in many other Asian bourses heartened investor sentiment.

In Shanghai, the composite index was up 0.53 per cent, or 14.28 points, at 2,703.03.

"Sentiment stabilised a bit after Monday's tumble, but the possibility the market could resume its downward trend remains," China Minzu Securities analyst Wang Xiaojun told Dow Jones Newswires.

Seoul gained 0.85 per cent, or 18.22 points, to 2,168.70 and Sydney ended 0.95 per cent or 42.9 points higher at 4,573.3.

However, in Mumbai, shares fell 1.87 per cent as investors and business leaders were spooked by a higher-than-expected 50 basis points increase in interest rates by the Reserve Bank of India as it tries to tame near double-digit inflation.

The benchmark 30-share Sensex index fell 353.07 points to 18,518.22, snapping two straight days of gains.

SHK Financial analysts Daniel So said: "The current situation is similar to early last week before the passage of the Greek bailout package.

"Investors are taking a wait-and-see stance before a likely solution (to the US debt issue)," he told Dow Jones Newswires.

In other markets:

* Taipei gained 1.28 per cent, or 110.73 points, to 8,794.24.

* Manila fell 0.33 per cent, or 14.63 points, to 4,465.87.

* Jakarta rose 1.12 per cent, or 45.68 points, to 4,132.77.

* Bangkok fell 0.53 per cent, or 5.95 points, to 1,121.63. - AFP