Asian markets rose to records Tuesday, with Hong Kong's Hang Seng Index clearing the 28,000-point level for the first time as investors snatched up China-related shares on expectations of fund flows from mainland investors.
In Tokyo, Japanese stocks rose to a two-month high on optimism about the U.S. economy -- a key export market for Asia. The Nikkei 225 index climbed 200.82 points, or 1.2 percent, to 17,046.78 points, the highest since Aug. 9. Exporters like Sony Corp. and Nissan Motor Co. led the advance.
Money flowing from the Chinese mainland lifted Hong Kong's Hang Seng index a stunning 1,057.28 points, or 3.9 percent, to 28,199.75, as it surpassed the 28,000-level the first time.
China-related companies led the market higher, with heavyweight China Mobile, the country's largest mobile phone operator by subscribers, rising 6.4 percent to HK$135.40.
Traders said the Hang Seng index will likely test the 30,000-point level this week, driven by strong liquidity as stock markets in mainland China are closed all week. Financial markets were closed in Hong Kong Monday for the National Day public holiday.
South Korean shares also surged to a new record, buoyed by South Korean President Roh Moo-hyun's visit to North Korea and prospects for improved business cooperation between the two Koreas.
ELSEWHERE:
JAKARTA: Indonesia's main stock index rose 2.7 percent to hit a fresh record close of 2,464.943 in high volume.
KUALA LUMPUR: Malaysian shares rose, with the Kuala Lumpur Composite Index rising 1.6 percent to 1,368.72 in heavy volume led by gains in blue chips, index-linked heavyweights and government-linked companies.
MANILA: Philippine shares surged to a two-month high Tuesday, propelled by Wall Street's rally overnight and expectation the Philippine central bank will cut key rates. The 30-company Philippine Stock Exchange Index rose 79.27 points, or 2.2 percent, to 3,677.19 -- its highest close since July 24. The market has risen 12 percent since mid-September.
MUMBAI: Indian stock markets were closed Tuesday for a holiday commemorating the birth of Mohandas Gandhi. They reopen Wednesday.
SINGAPORE: The benchmark Straits Times Index rose 38.6 points, or 1.02 percent, to a record closing high of 3,793.8 points.
SYDNEY: Australian stocks rose to new highs, with the benchmark S&P/ASX 200 rising 1.5 percent to 6,659.9, thanks to strong gains in resources and banks after Wall Street rallied on hopes of Fed easing.
TAIPEI: Taiwan shares advanced, with financial issues leading the way. The Weighted Price Index of the Taiwan Stock Exchange rose 134.75 points, or 1.42 percent, to 9,623.25.
WELLINGTON: New Zealand stocks gained as investors took heart from Wall Street's record close overnight and as positive sentiment towards heavyweight Telecom continued. The benchmark NZX-50 index rose 51.4 points, or 1.2 percent, to 4,332.29.
with files from other wire services
