Most Asian markets rise, defy third straight loss on Wall Street;

The Associated Press , Bangkok | Fri, 03/28/2008 6:50 PM | Headlines

Most Asian markets rose Friday, going against a third straight drop on Wall Street that came after the U.S. government confirmed the American economy did indeed see a sharp slowdown in the last quarter of 2007.

Japan's stock market rose to its highest level in two weeks as last-minute buying before the end of the fiscal year lifted a wide range of blue chips, including electronics and financial shares. The
Nikkei 225 stock index rose 1.7 percent to 12,820.5.

The main benchmarks rose in Hong Kong and China on rumors of possible moves by mainland authorities to support Chinese share values. The blue-chip Hang Seng Index rose 2.7 percent to 23,285.95, while the Shanghai Composite Index gained 4.9 percent to 3,580.1 - bouncing back from a drop of more than 5 percent the day before.

Traders in Tokyo said the market may be entering a brief rebound period. Major U.S. investment banks have finished reporting quarterly earnings, and expectations are growing that domestic investors, including pension funds, will pump in new money at the start of the fiscal year on April 1.

"Now that the worst is over for the market, it is entering an upward trend as the tension eases," said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management.

The improved mood invited bargain-hunting in issues with relatively good earnings fundamentals such as trading houses.

Mitsubishi Corp. jumped 5.0 percent. Sumitomo Corp. advanced 3.3
percent.

Among consumer electronics companies, Matsushita Electric added 4.5 percent and Mitsubishi Electric climbed 4.3 percent.

Taisho Pharmaceutical Co. shed 1.7 percent on a Nikkei report it will likely see a profit decline next fiscal year due to an expected drop in its prescription drug sales.

Shares listed in Hong Kong and Shanghai rose broadly on speculation over a cut in the stamp duty on stock trades on the mainland. Rumors were also flying that the Chinese government might soon introduce stock index futures, a long-awaited move that is
expected to boost investor interest and trading volume.

In Hong Kong, China Shenhua Energy soared 9 percent, PetroChina rose 5.2 percent, Ping An Insurance jumped 8.3 percent, and China Life Insurance rose 6.1 percent.

Also, oil company CNOOC rose 6.8 percent as oil prices continued to hold well above US$100 a barrel.

Many of the same companies surged similarly in their Shanghai listings. However, some analysts warned that the prospects for lower earnings due to the U.S. economic slowdown continue to dog the market.

On Thursday in the U.S., the Dow Jones average posted its second straight loss of more than 100 points, falling 1 percent to 12,302.5.

The only major market to lose ground Friday in the Asia-Pacific region was Australia's stock exchange, where the S&P/ASX 200 index fell 0.4 percent.

Elsewhere, India's main Sensex measure rose 2.2 percent, the Korea Composite Stock Price Index rose 1.5 percent, and the Philippines Stock Exchange Index rose 1 percent.

In currencies, the dollar fell to 99.95 yen at 5:50 p.m. (0850 GMT) in Tokyo, down from 100 yen late Thursday in New York, after briefly rising as high as 100.19. The euro fell to US$1.5769 from US$1.5780. (***)

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