Asian markets soar on renewed hopes for recovery

HONG KONG - Asian markets surged higher Monday, powered by fresh hopes for a global economic recovery after gains in Europe and Wall Street as well as stronger commodity prices brightened sentiment. Tokyo drove 3.35 percent higher and Sydney gained 3.16 percent, as firmer copper prices lifted mining companies. Hong Kong added 1.67 percent while Manila roared 5.11 percent higher. Investors also saw further evidence of a stabilising Chinese market as Shanghai added 1.10 percent after recent sharp falls on overheating fears. The upbeat start to the week came after US stocks closed at fresh 2009 highs on Friday in response to bright housing data and Federal Reserve chief Ben Bernanke's comments that global recovery prospects "appear good." However, analysts said the buoyant mood would be tested by new US data this week, including a second preliminary estimate of US gross domestic product (GDP) for the second quarter on Thursday. TOKYO: Up 3.35 percent. The Nikkei-225 climbed 342.85 points to 10,581.05. The market is approaching a 10-month closing high of 10,597.33 seen on August 14. "The investor mood brightened over the weekend," Yukio Takahashi, market analyst at Mizuho Securities, told Dow Jones Newswires. Mining stocks and trading houses rose on hopes that demand for raw materials will get a boost from a global economic recovery. Inpex climbed 5.4 percent to 758,000 yen and Mitsubishi Corp. advanced 3.9 percent to 1,914 yen. Electronics and auto makers also gained as the dollar rebounded against the yen. Toyota Motor rose 2.3 percent to 4,070 yen and Honda Motor added 3.2 percent to 3,050 yen. HONG KONG: Up 1.67 percent. The Hang Seng Index finished the session 336.92 points higher at 20,535.94. "Bernanke practically put up a sign on Friday saying "It's official, the recovery is happening, you should buy stocks now," which is going to get some lemmings off the fence," said a Hong Kong-based fund manager. Aluminium and alumina producer Chalco gained 3.4 percent to 9.21. China Construction Bank rose 2.6 percent to 5.99 dollars after posting Friday an above forecast net profit of 55.81 billion yuan (8.15 billion dollars) in the first-half. SYDNEY: Up 3.16 percent. The S&P/ASX200 rose 135.5 points to 4,426.1. The index, which is at its highest since July 14, was also helped by strong commodities prices. CMC Markets' senior dealer Matt Lewis said as well as Bernanke's comments, a five percent rally in the copper price helped BHP Billiton close up 1.57 dollars at 38.18 dollars. Rival Rio Tinto added 2.67 dollars to 58.98. Fairfax Media rose five cents to 1.46 after posting a 380 million dollar net annual loss but indicated declines in advertising revenue may have bottomed. Qantas, which last week posted an 88 percent drop in annual net profit, rose 12 cents to 2.64. SHANGHAI: Up 1.10 percent. The Shanghai Composite Index, which covers A and B shares, was up 32.66 points at 2,993.43. "The bubble in the market valuation has been corrected to a degree, and given the US shares' gains on Friday the market would be relatively well supported," Great Wall Securities analyst Zhang Yong said. Drug producers surged for the second consecutive session on hopes China's recently released national drug reference catalogue would standardise pharmaceutical products, boost confidence and increase demand. Zhejiang Conba Pharmaceutical rose by the 10 percent daily trading limit to 10.35 yuan after rising 10 percent Friday. Sinopec rose 2.2 percent to 13.39 yuan after it said first-half net profit increased four-fold from a year earlier to 33.25 billion yuan. SEOUL: Up 1.98 percent. The KOSPI gained 31.24 points to 1,612.22. "Federal Reserve chairman Ben Bernanke's comment and positive economic data from the US and Europe fanned expectations for further economic recovery," Hwang Bin-Ah of Kyobo Securities said. Samsung Electronics climbed 3.4 percent to 783,000 won and Hyundai Motor rose 4.4 percent to 107,500 won. Samsung Securities climbed 5.0 percent to 79,700 won, Daewoo Securities jumped 9.1 percent to 25,200 won and Shinhan Financial Group rose 3.4 percent to 42,500 won. TAIPEI: Up 2.76 percent. The weighted index rose 183.45 points to 6,838.25. "Judging from the gains by large cap stocks, I suspect the buying largely came from government-controlled funds in an attempt to help the local bourse get out of the recent weakness," Taiwan International Securities analyst Arch Shih said. United Microelectronics Corp gained 6.69 percent to 13.55 dollars. Smartphone maker HTC added 1.81 percent to 338.00 after it and China Mobile signed a memorandum of understanding to develop products and technology for the mainland. SINGAPORE: Up 2.65 percent. The Straits Times Index put on 67.47 points to 2,612.33. "This is a new wave of optimism," IG Markets institutional dealer Chris Weston said. "There's no way this momentum on Wall Street will just turn around." Singapore Airlines added six cents to 12.80 and Singapore Telecommunications put on five cents to 3.16. DBS rose 26 cents to 12.92 and United Overseas Bank climbed 54 cents higher to 16.80, while property developer CapitaLand was 11 cents stronger at 3.75. BANGKOK: Up 1.33 percent. The Stock Exchange of Thailand gained 8.57 points to close at 653.20. Data showed the economy shrank 4.9 percent year-on-year in the second quarter but is showing signs of recovery. Coal miner Banpu gained 4.00 baht to close at 410.00 baht, PTT Plc rose 7.00 baht to 244.00 baht and its subsidiary PTT Exploration and Production edged up 1.00 baht to 142.00. Bangkok Bank added 2.50 baht to close at 115.50 baht. KUALA LUMPUR: Up 0.91 percent. The Kuala Lumpur Composite Index added 10.70 points to 1,174.49. All sectors were higher on the positive US economic news. Genting rose 5.8 percent to 6.59 ringgit, Maybank added 1.4 percent to 6.52 ringgit and Unisem jumped 8.8 percent to 1.74 ringgit. JAKARTA: Up 1.80 percent. The Jakarta Composite Index rose 41.98 points to 2,375.87 Palm oil company Astra Agro rose 4.74 percent to 22,100 rupiah and cement manufacturer Indocement increased 1.58 percent to 9,650. MANILA: Up 5.11 percent. The composite index gained 139 points to 2,859.18. The market played catch-up after being closed Friday for a public holiday, said dealers. Philippine Long Distance Telephone Co. jumped 4.78 percent to 2,520 pesos while the Manila Electric Co. grew 12.24 percent to 220 pesos. Megaworld Corp. rose 14.5 percent to 1.42 pesos. WELLINGTON: Up 1.08 percent. The NZX-50 rose 32.72 points to 3,067.67. Forsyth Barr broker David Price said gains were constrained by investor caution as they digested company results that "may have fallen just slightly shy of expectations." Some exporters fell as the New Zealand dollar rose to close local trading at 68.48 US cents, up from 67.17 on Friday. Market leader Telecom rose eight cents to 2.72 dollars and Contact Energy added five cents to 6.25. MUMBAI: Up 2.55 percent. The 30-share Sensex index rose 387.92 points to 15,628.75.