Asian markets close higher on U.S. gains


Taiwan President Chen Shui-bian has appointed new economic and finance officials to address the island's worst recession and record unemployment

HONG KONG, China -- Most Asian markets ended higher Thursday as gains in U.S. shares encouraged hopes for a global economic recovery.

Korea was the strongest performer among the major markets, up more than 2 percent. But Hong Kong ended in the red.

In Tokyo, stocks shed early gains to end slightly higher. That was after a slide in major banks was largely offset by soaring chip and auto issues.

The benchmark Nikkei average finished up 0.33 percent at 10,074.05, while the broader capital-weighted Topix index rose 0.54 percent to close at 980.44.

Leading carmaker Toyota Motor finished 3.8 percent higher at 3550 yen, No.2 maker Nissan added 26 yen or 3.6 percent to 751 yen, while third-ranked Honda rose 2.3 percent to 5340 yen.

Yen trading around 134.5

Japanese auto issues drew strength from a softer yen, which traded around 134.5 for much of the day.

But top lender Mizuho Holdings slipped 3.42 percent to 254,000 yen as it struggles under a mountain of bad loans.

In Korea, shares ended higher for a fourth consecutive session after gains by brokerages and defensive shares pushed the main index to an 18-month closing high.

The benchmark Kopsi index rose 2.03 percent to close at 757.71, while the tech-heavy Kosdaq slipped 0.03 percent to 75.01.

Defensive issues rose, including department and discount store operator Shinsegae, which was up 5.4 percent to 176,000 won, on expectations of robust sales ahead of lunar New Year holidays in February.

Brokerage stocks rose 5.6 percent after Korea Electronics Communication Network Securities announced plans to expand shares available for after-hours trade.

Market heavyweight Samsung Electronics was up 0.65 percent to 310,000 won. SK Telecom added 6000 won or 2.37 percent to 259,000 won.

Australia in positive territory

Australian shares ended in positive territory after investors poured funds into the market, particularly the mining giants, on the back of encouraging economic data.

The benchmark S&P/ASX200 index finished up 8.8 points or 0.26 percent at 3430.8. Resources leader BHP Billiton surged 2.95 percent to A$11.51, but News Corp dipped 1.3 percent.

Taiwan shares likewise finished higher as tech issues tracked overnight gains in their U.S. counterparts.

Investors also welcomed the appointment of new finance and economic ministers, part of a cabinet revamp aimed at tackling the island's worst recession and record unemployment. .

The benchmark Taiex share index finished 0.56 percent higher at 5,801.92.

Hong Kong uncertain

But shares in Hong Kong reversed early gains to drop slightly in the afternoon due to uncertainty over the direction of U.S. interest rates.

The benchmark Hang Seng index finished down 20 points or 0.2 percent at 10,741.46.

Concerns over the direction of U.S. interest rates led a number of banking and property stocks weaker. Banking giant HSBC Holdings dropped 0.29 percent at HK$87.00, while property group Henderson Land fell 2 percent to HK$33.40.

Singapore's Straits Times index was down slightly in late afternoon trade, while markets in India were largely unchanged.