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Asian stocks extend gains on bargain hunting

ASIAN & taiwan Stocks

Asian stocks extend gains on bargain hunting

Asian stocks climbed higher yesterday as bargain hunters moved in after losses, but the rise was restrained by fears the European debt crisis and weak euro could derail the global recovery.
Dealers were unmoved by data showing Japanese exports soared more than 40 percent in April, as eurozone fiscal concerns shifted from Greece to Spain.
Tokyo reversed earlier losses to end 1.23 percent higher, closing at 9,639.72, while Sydney ended 1.67 percent up at 4,379.2.
Hong Kong rose 0.75 percent by the break and Shanghai was up 0.25 percent, while Singapore rose 0.39 percent in the afternoon.
Investors extended gains from Wednesday's small rally although the eurozone's struggle to control member' crippling debts continued to weigh heavily on sentiment, with many fearing a knock-on effect around the world.
The troubles, which began with Greece, have dealt a blow to the euro, hammering confidence and hurting global exporters dependent on Europe for their sales.
"As the eurozone issue is shifting from Greece to the Spanish financial sector and fiscal problems, the euro is likely to keep declining against the U.S. dollar," Barclays Capital said in a note to clients.
Spain has become the focus of European concerns after its central bank at the weekend rescued a local lender, CajaSur bank, adding to strain on the country's finances.
The bailout of at least 523 million euros (US$657 million) came as Madrid introduced new measures to cut its public deficit to a eurozone limit of three percent of gross domestic product from 11.2 percent last year.
The International Monetary Fund has also warned Spain that its recovery will be "weak and fragile," with urgent labour and bank reforms needed.
The ongoing crisis has shaken confidence in several other eurozone countries, including Ireland, Italy and Portugal.
There was a subdued reaction among Japanese investors to new data showing that exports soared 40.4 percent year-on-year in April, the fifth straight monthly rise. While the figures boosted hopes that the economic recovery was on track, eyes were on the strengthening yen, which hurts the key export sector.
The country's surplus also jumped 14-fold to 742.3 billion yen (US$8.25 billion), the finance ministry said.
Gold opened at US$1,213.00-US$1,214.00 an ounce in Hong Kong, up from Wednesday's close of US$1,207.00-US$1,208.00.
In other markets:
Seoul closed 1.60 percent, or 25.38 points, higher at 1,607.50.
Dealers moved in to pick up cheap stocks after a heavy loss Tuesday caused by rising tensions on the Korean peninsula.
Taipei rose 1.06 percent, or 75.81 points, to 7,243.16.
UMC rose 0.72 percent to NT$14.1, while Hon Hai fell 0.39 percent to 128.5, after news of another worker falling to his death in its Foxconn factory in southern China - the 11th such death this year.
Manila gained 1.00 percent, or 31.39 points, to 3,156.53.
Dealers were given a boost by data showing the economy grew 7.3 percent year-on-year in the first three months of 2010, the best performance since the June quarter of 2007.
Philippine Long Distance Telephone rose 0.65 percent to 2,335 pesos and Aboitiz Power added 3.28 percent to 15.75 pesos while Ayala Corp. edged up 0.8 percent to 322.50.
Wellington added 0.79 percent, or 23.65 points, to close at 3,034.83.
The market picked up after falling to a 10-month low earlier.
Fletcher Building ended up 2.9 percent at 7.93 New Zealand dollars and Contact Energy rose 1.0 percent to 5.92 while Telecom ended up 0.5 percent at 1.91.


Updated : 2021-04-23 20:23 GMT+08:00