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Asian highlights

HONG KONG: Asian stock markets closed mostly higher on Wednesday with Tokyo hitting another high but investor sentiment largely defied any regional trend, trading on a widely divergent range of domestic and international factors.

Shares in Tokyo ended on a firm tone that some analysts said was expected to continue into the near future and proved the underlying resilience of the market.

The 225-share Nikkei average closed up 47.53 points or 0.22 percent at 21,791.70, setting a four-year high for a second day in a row. The previous high was 21,819.52 on February 10, 1992.

Hong Kong stocks closed modestly lower but brokers said the downside looked limited with the 11,000 level a key resistance. The blue-chip Hang Seng Index slid 29.82 points to 11,077.55.

"The market has lost direction, with chances of further U.S. rate cuts widely expected to be very slim, but that appears to have been partly discounted already," said one Hong Kong dealer.

Taiwan share prices were sharply higher boosted by waves of active buying in the heavily-weighted financial sector.

The weighted index ended 178.31 points or 3.19 percent up at 5,768.03, the highest level since mid-May, 1995.

Buying intensified in late trade after Moody's Investor Services said it had assigned long- and short-term deposit ratings of A2 and Prime-1 to Taiwan's three big state banks.

Prices were also higher in Kuala Lumpur, Manila, Jakarta, Singapore, Bangkok, Sydney and Wellington.

Jakarta share prices ended higher on active local-led buying in secondliners while foreign players were active on heavyweight stocks, brokers said. The composite index rose 6.58 points, or 1.10 percent, to close at 603.94 points.

The key Kuala Lumpur Stock Exchange Composite Index closed up 17.84 points or 1.57 percent at 1,151.74, led by buying of blue chips.

Hopes of good corporate earnings and continued encouragement from flat inflation growth pushed the Manila stocks index closer to the 3,000-point mark. The index rose 31.63 points or 1.07 percent to end at 2,994.42.

Singapore shares ended firmer with bargain hunting in banks and properties. The Straits Times Industrials Index ended at 2,389.98, up 7.85 points.

Sydney's All Ordinaries index was 4.40 points higher at 2,225.4 on a rebounding June SPI futures contract, and in Wellington the NZSE-40 Capital Index ended 8.87 points higher at 2,136.65, led largely by a gain in Fletcher Paper stock.

Thai shares closed slightly higher with most investors sidelined ahead of a long four-day weekend. The SET index closed 1.54 points higher at 1,337.21 on 4.9 billion baht trade.

Trading was flat in Seoul due to seesawing between institutional support and individual selling on the eve of the general elections, brokers said on Wednesday.

The composite stock index closed at a provisional 869.17, down 0.65 points. Losers led gainers by 459 to 293.

"Many investors took a wait-and-see attitude throughout the day amid uncertainty of the outcome of the parliamentary elections tomorrow," said Kwon Oh-seung of Samsung Securities.

The dollar jumped to a nearly seven-month high hitting 1.5 marks in early afternoon Tokyo trade before dipping slightly and then climbing back. At 1108 GMT the dollar was quoted at 1.4982/87 and 108.29/39.

Hong Kong bullion ended at US$394.50/395.00 an ounce against New York's $394.30/60 close on Tuesday.

SIMEX Brent futures were firmer in late afternoon dealings from their day-earlier IPE close, supported by a draw in weekly U.S products stocks, brokers said.

May was untraded but quoted at $20.75/$20.84, up from $20.70 on the IPE Tuesday.-Reuter