Asian markets advance in thin trading to wrap up volatile week

The Associated Press ,  Bangkok   |  Fri, 03/21/2008 9:18 PM  |  Headlines

Most Asian financial markets rose in thin holiday trading Friday after a turbulent week.

Japanese shares were buoyed by gains in property developers and financial issues. The Nikkei 225 index climbed 222.13 points, or 1.81 percent, to close at 12,482.57.

South Korean shares extended their winning streak into a fourth session amid easing concerns about global inflation after commodities prices declined. The Korea Composite Stock Price Index,
or Kospi, added 22.30 points, or 1.4 percent, to 1,645.69.

Trade was also subdued because many markets in Asia, Europe and the Americas were closed for Good Friday. Regional markets that were off included Hong Kong, Australia, India, Indonesia, New Zealand, the Philippines and Singapore.

It was a quiet end to a week that began with global markets plunging on news that JPMorgan Chase would buy troubled U.S. investment bank Bear Stearns, which had been battered by the
subprime mortgage crisis.

Asian markets rebounded Wednesday after the U.S. Federal Reserve cut rates by a hefty three-quarters percentage point, sparking a huge rally on Wall Street.

Worries linger about the outlook for the American economy and much of Friday's gains in Tokyo were from a short-term adjustments, traders said.

"Gains mainly seemed to be driven by short covering ... rather than real buying power, so it was otherwise very quiet trading in the market," said Motomi Hiratsuka, head of sales trading at BNP Paribas in Tokyo.

Investors that sell "short" are betting that a stock or future contract will fall. Later, they have to buy the stock or contract to meet their obligation from the earlier sale, sometimes covering
their gamble at a loss.

Sumitomo Realty & Development, Japan's third-largest real estate developer by revenue, gained 6.9 percent. Mizuho Financial Group added 4.7 percent.

In South Korea, banking stocks generally ended higher with Kookmin Bank advancing 6.7 percent and smaller rival Shinhan Financial Group gaining 5.5 percent.

In Thailand, the key index rose 0.7 percent, while Malaysia's market inched up 0.2 percent. (***)

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