960420

Asian equities may pause

for a breather

HONG KONG: Tokyo shares are expected to resume their climb in the week ahead with the help of fresh cash but most other Asian markets are likely to pause for a breather, brokers and analysts said.

Tokyo traders are encouraged by the Nikkei's rise through a key resistance point though domestic interest rates could still cloud the horizon.

In Taipei, investors are cautious after the market's heady gains while Hong Kong will look to Wall Street for direction.

TOKYO - Shares in Tokyo, which have consolidated in the past four days, are set to resume their advance as new cash is expected from trust funds, traders and analysts said.

"The market might challenge the next technical resistance of 22,500...," said Hideyuki Ohkoshi at Yamaichi Securities.

While interest rate worries continued to haunt the market, many traders said they did not expect an imminent change in the Bank of Japan's monetary stance.

The Nikkei 225 added 71.34 points to close at a four-year high of 21,883.84 on Friday, up from 21,660.43 a week earlier.

HONG KONG - Stocks are expected to look to Wall Street for direction due to a lack of local factors. Brokers said further signals on the direction of U.S. interest rates will be the main factors though friction between China and Britain and China and the U.S. could also have a limited impact on trading.

The blue-chip Hang Seng Index fell 31.31 points on the week ending Friday at 10,818.49 in thin trading.

BOMBAY - Indian blue-chip shares turned bullish, driven by heavy pre-election demand from foreign funds, brokers said.

The BSE was closed on Friday for a holiday, but other bourses including the National exchange were open and prices were firm.

BANGKOK - The Stock Exchange of Thailand index is expected to rise slightly on selective buying after falling in the latest week, brokers said.

COLOMBO - Sri Lanka stocks, after ending the week on a subdued note, are expected to be confined to narrow range trading, brokers said.

DHAKA - Dhaka stocks were mostly steady during the past week but a limited correction was expected.

The Dhaka Stock Exchange (DSE) all share price index gained 9.59 points at 822.49 in the week ended on Thursday.

JAKARTA - Jakarta share prices were likely to be steady with the composite index holding above the 610-point level in the coming week due partly to demand for secondliners, brokers said.

KARACHI - Pakistani stocks are likely to trade lower due to bearish sentiment sparked by a strike on Thursday called by the ethnic Mohajir National Movement.

On the last trading day on Wednesday, the Karachi Stock Exchange's 100-share index closed 17.90 points lower at 1,521.15 compared to a rise of 6.39 points to 1,555.30 the previous week.

KUALA LUMPUR - Second liners continued to dominate the market, as funds moved into speculative issues. Dealers said foreign investors were also likely players in the Second Board, given the huge gains seen in the group.

MANILA - Philippine shares are expected to start the new week cautiously as investors await more first quarter corporate reports, traders said.

"Sentiment will be cautious as investors await the first quarter reports of blue chips PLDT and San Miguel. Both are rumoured to be below-par," she said.

The index ended on Friday at 2,957.99, 29.50 points or 0.99 percent lower than a week ago. It is expected to trade in the 2,950-3,000 range next week.

SEOUL - Seoul shares are expected to consolidate but the longer term outlook is encouraging, brokers said.

"I see some consolidation early...," said a Schroders broker. "There should be, for better long-term growth."

Brokers said market sentiment was being boosted by falling interest rates, political stability, active foreign participation and a better-than-anticipated economic picture.

Friday's news that the Stock Market Stabilisation Fund would be liquidated as scheduled on May 3 and that institutions had abandoned their net buying positions did not dent the good cheer, brokers said.

On Saturday the composite index ended 6.68 points lower at 941.69, but brokers said bank and security house shares were popular among foreign investors.

SINGAPORE - Singapore shares are likely to consolidate in quiet trading, brokers said.

"I expect interest will be focused on second liner Malaysian shares traded over the counter," a director at a local securities house said.

SYDNEY - Australian shares are seen mixed in the near term with the first hurdle to overcome being first-quarter inflation data due on Tuesday.

TAIPEI - The Taiwan stock market is expected to remain in a consolidation phase as investors grow cautious over the big recent rally, brokers said.

WELLINGTON - The New Zealand share market closed little changed on Friday after a week of awaiting for news of a bid for the last locally owned bank, Trust Bank. -Reuter