Asia watch

ASIAN markets continued their week-long surge as investors shrugged off poor economic data from around the region, and instead looked ahead to an early ending of the Afghanistan conflict and a recovery in the US.

The biggest contraction in Taiwan's economy in a quarter of a century and confirmation that Singapore was deeply in recession failed to dent enthusiasm for regional stocks. Prospects of lower oil prices lifted airline stocks, which have been battered by falling traffic after 11 September.

Tokyo stocks slipped from best levels, which saw the Nikkei 225 Average touch 10,850, but a recovery in banking stocks and an extension of the rally in technology counters generated a net gain of 159.20 to 10,649.09. Domestic and foreign investors carried on buying Sony, Fujitsu and other computer-related stocks after Dell promised current earnings from computer sales would meet analysts' forecasts.

Soothing words about the long-term prospects for Japanese banks from government ministers encouraged some late bargain-hunting among the big lenders, and the giant Mizuho Holdings recovered 6% after recent plunges to record lows.

Cathay Pacific rose 3% in Hong Kong, while locally-quoted mainland carrier China Airlines rushed up almost 7%, and the Hang Seng jumped 48 to 11,287.4.

Taiwan stocks tested 10-week highs, despite shrinkage of 4% in its third-quarter gross domestic product. An early surge of 2% was later halved as investors took profits, leaving the Weighted Average up 43.03 at 4446.62. Semiconductor and other technology stocks remained investors' favourites even though there has been an easing of recent rises in the price of DRAM chips.

South Korean stocks refused to stay down, despite early losses on profit-taking. Technology stocks eased, but hopes of lower jet fuel costs lifted Korean Airlines, and the Kospi added 4.24 to 610.68.

Singapore stocks hit two-month highs before discretion descended, with the Straits Times index ending down 10 at 1422.2. Investors ignored grim GDP figures which showed the economy shrank 5.6% in the third quarter and 11% on an annualised basis. Instead they continued to chase Singapore Airlines shares on hopes of lower fuel prices, and the stock added more than 5%.

Resources stocks, which had marched Sydney's market up most of the week, were dragging it down as falling commodity prices prompted profit-taking. BHP Billiton led the retreat. But the All Ordinaries gained 46.5 to 3322.5. Belief that the US markets are signalling an end to further interest rate cuts sliced major Australian bank stocks, with Macquarie down a further 1%, after its recent poor first-half results.

Profit-taking in Malaysian stocks ended a five-day rally which has pushed the market up 7%, but falls were modest and the Kuala Lumpur Composite eased only 0.15 points to 632.35. Thai investors chased basic domestic economy stocks, and took the SET index up 4.80 points to 273.08. The Jakarta Composite was steady at 378.38.

Prices and indices in this section are supplied from various sources and calculated at different times and may not always match those listed on the site.