Asian stocks close mostly up as investors recover poise

Asian stocks close mostly up as investors recover poise

Hong Kong: Asian stocks closed mostly up on 13 November 2007 as investors recovered some poise after a major sell-off triggered by US woes, but unexpectedly good Japanese economic growth failed to staunch losses in Tokyo.

Japanese share prices fell 0.46% to a fresh 15-month low even though official data showed the country’s economy grew by 0.6% between July and September, ahead of forecasts.

The Nikkei-225 had tumbled a day earlier too amid an Asian rout following losses on Wall Street, where there are persistent fears of a US economic slowdown due to a major credit market crisis.

Share prices in Shanghai also fell, by 0.57% , after China’s annual inflation rate rose to 6.5%, triggering fears the authorities could raise borrowing costs to slow the economy and control consumer prices.

Shares in India posted the biggest rise, with the benchmark Sensex climbing 1.59%, despite data released on 12 November showing a sharp slowdown in the country’s industrial output growth.

Australian shares also performed well, rising nearly 1% with a strong domestic economy boosting investor sentiment.

Hong Kong share prices closed up 0.5% after an erratic session, as property developers drew interest on hopes that housing sales will get a boost from lower interest rates, dealers said.

Local banks have reduced their prime lending rates twice in recent weeks, and there are hopes that more cuts could be on the way due to excess liquidity in the system, they said.

The Hang Seng index closed up 137.62 points at 27,803.35, off a low of 26,952.94 and a high of 28,010.97.

Taiwan share prices closed 0.65% higher after a volatile trading session as bargain hunting overcame worries about US credit market woes, dealers said.

South Korean shares too closed up 0.5% as bargain hunting emerged late in the day after the KOSPI index fell nearly 2% earlier in the session, dealers said.