(easybourse, Sept 28, 2006) Asian markets were broadly higher Thursday, with Japan and Australia posting gains for a second day as investors piled into Honda Motor Corp., BHP Billiton Ltd. and energy-related shares after crude-oil prices rebounded.
Japan's Nikkei 225 Averageended the session 0.5% higher to 16,024.9. The Tokyo Stock Price Index, or Topix, was up 0.7% to 1,602.6.
Elsewhere around the region, Australia's S&P ASX/200 rose 0.4% to 5,115.2, as the mining sector gained for a second day following recent weakness in the commodity sector.
Shares listed in India traded flat. Singapore's Straits Times Index was up 0.1%. Indonesia's Jakarta Composite Index rose 0.3%. New Zealand's leading share index rose 0.4%.
In Taipei, the Weighted Index fell 0.9% to 6,885.1, to rank as the lead declining market. Malaysia's KLSE Composite was up 0.3%. South Korea's Kospi Index was up 0.8%, while the Shanghai Composite Index advanced 0.7%.
Hong Kong's Hang Seng Index gained 0.2% to 17,551.5. The China Enterprises Index, or Hong Kong-listed shares in mainland-incorporated companies, was up 0.6% at 7,113.8.
"The new cabinet has started and there are upbeat expectations of the growth strategy of the Abe administration," said Hirokaza Yuihama, regional head of strategy for Daiwa Securities in Hong Kong. He added that U.S. data on new-home sales released Wednesday was stronger than expected, pointing to a more upbeat outlook for economic growth than many had expected.
"I have been positive on Asia because of the high probability of a soft landing in the U.S," Yuihama said. "It is unlikely we'll see further interest rate hikes this year, and we're even looking at a rate cut early next year, so it all works toward the positive."
Gains among Asian markets were limited despite Wednesday's advance on Wall Street, which saw the Dow Jones Industrial Average (DJI) within striking distance of its all-time high.
Sean Darby, regional economist for Nomura International in Hong Kong, said he was cautious on global equity markets, adding that corporate profits are unlikely to improve much in coming quarters.
"The earnings cycle has pretty much peaked in global markets; what I think has happened is that bond yields have been very benign for global investors, falling from 5.2% to 3.6%; that is [three percentage points] of rate cuts in a short space of time, so I think equity markets have rallied on that," Darby said.
Gold for December delivery was up $4.9 to $608.20 an ounce, adding to a $6.20 gain in New York.
Crude-oil futures gained 15 cents to $63.11 a barrel in electronic trading, extending the $1.95 advance on the New York Mercantile Exchange Wednesday.
In currencies, the dollar traded at 117.5 yen, up slightly from its level of 117.44 in late New York.
Traders said the yen was under pressure against the dollar owing to uncertainty over how Japan's new economic and finance ministers will tackle the economy.
Prime Minister Shinzo Abe is due to give his inaugural policy speech to the Diet Friday. Abe is expected to stress technological innovation and call for strategic tax cuts to promote corporate investment in information technology, the business daily Nihon Keizai Shimbun said Thursday, without citing sources.
Among the energy sector, shares of Japanese oil and gas company Inpex Holdingsgained 1.7%, while refiner AOC Holdings Inc. (DJI) gained 2.9%.
China's largest oil producer PetroChina (PTR) gained 1.5%; offshore oil producer CNOOC (CEO) rose 1.4%.
Tire maker Bridgestone Corp.was up 1.9%.
Australian miners advanced with BHP Billiton Ltd. (BHP) up 1.2%, while smaller rival Rio Tinto Ltd. (RTP) firmed 1.3%.
Among techs, shares of entertainment and electronics conglomerate Sony Corp. (SNE) fell 0.8% as investors took profits after recent gains. Computer maker NEC Corp.fell 0.8%.
Panasonic-brand maker Matsushita Electric Industrial Co.nudged higher 0.2% after saying it had started producing DVD recorders and other digital consumer items in Brazil.
Automaker Honda Motor Corp. (HMC) rose 0.8%. The company said it will introduce its Acura brand of vehicles in China, marking the first time the luxury line has been marketed outside North America. Honda said its first showroom will be in Shenzhen, a special economic zone in southern China.
Hong Kong flag carrier Cathay Pacificfell 1.4% to HK$16.04, as investors judged higher oil prices negative for the company's outlook.
Mainland asset-related shares were higher after China's central bank set the yuan's trading range at a post-revaluation high at the start of Thursday's trading.
Conglomerate China Resources, which owns supermarkets, convenience stores, and a food distribution business, gained 1% to HK$16.48.
Shares of Shenzhen Expressway Co Ltdsurged 4.8% to a record HK$4.40.
Ping An Insurance Co.fell 0.7% in Hong Kong trading on concerns a plan to offer as much as $4 billion in mainland listed A shares would dilute its existing share base.
On Wall Street Wednesday the Dow Industrials (DJI) closed up 19.85 points at 11,689, just shy of its record close of 11,722.98, hit Jan. 14, 2000.
The Nasdaq Composite Index (RIXF) finished up 2.05 points at 2,263, while the S&P 500 Index (SPX) added 0.25 point to 1,336.

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