Hong Kong, Australia close on a high


Asia stock markets are hoping for better things in the Year of the Horse

HONG KONG, China (CNN) -- Stock markets in Hong Kong and Australia ended strongly higher Monday at the start of what is a holiday week in most of Asia.

With key markets in Japan and Korea already closed for the Lunar New Year holidays, Asian investors focused on Hong Kong.

They prepared a warm welcome for the Chinese zodiac's Year of the Horse, pushing the Hang Seng index 313.754 points or 3 percent higher to 10,832.74 at the close of a shortened day's trading.

Despite ending on a high, the Hang Seng was down 32 percent for the 12-month period known as the Year of the Snake.

Australia also traded strongly, with its benchmark S&P/ASX 200 index moving close to its record high of 3490.3 set in June last year.

The market put on 26.1 points or 0.76 percent to end the day at 3476.5, with resources stocks and some of the big banks among the key gainers.

Singapore up on growth outlook

Singapore, one of the other major Asian markets to trade, rose 0.3 percent or 4.26 points to finish at 1740.68.

That came as the government of Prime Minister Goh Chok Tong raised its economic outlook to growth of between 1 percent and 3 percent this year.

In the U.S. last Friday, Wall Street had rebounded sharply. The blue-chip Dow Jones industrial average jumped 1.23 percent to 9744.24 and the tech-heavy Nasdaq Composite Index climbed 2.06 percent to 1818.88.

In Hong Kong, which resumes trading on Friday, banking leader HSBC rose 3.2 percent or HK$2.75 to $88.50.

The other market heavyweight, China Mobile, put on 3.4 percent to HK$22.75.

News takes Australia higher

In Australia, heavyweight media group News Corp led the index higher. It was up 3.13 percent to A$13.55, ahead of its first quarter results Wednesday.

The two biggest banks, National Australia Bank and Commonwealth Bank, had mixed fortunes after both were stronger in midday trade.

The NAB closed 0.55 percent higher at A$34.69, but CBA faltered to close in the red, down 14 cents or 0.43 percent to A$32.21. Westpac was up 0.56 percent to A$16.24.

Resources giant Rio Tinto gained 17 cents to A$39.76, while rival BHP Billiton gained 1.34 percent to A$11.81. BHP will unveil half-year earnings later this week.

MIM lifted 0.8 percent to A$1.35 after the miner said it expected second half net profit to come in above the A$21 million (US$11 million) net profit booked in the first half.

Australian gold stocks returned to favor after gold jumped sharply in London and Tokyo. Leading producer Normandy added 1.3 percent to $2.36 on high turnover.

Brewer Lion Nathan rose 1.5 percent after it confirmed reports it would produce Kirin beer in Australia and China later this year. Japanese brewer Kirin holds a 46 percent stake in Lion.

Traders were also digesting the Reserve Bank of Australia's statement on monetary policy for its views on the economic outlook and likely interest rate movements. The central bank left rates unchanged after its monthly meeting last week.

New Zealand weaker

Elsewhere in the region, New Zealand's NZSE Top 40 was weaker, down 6.5 points or 0.3 percent to 2088.31.

Manila finished 1.6 percent higher at 1365.96 while in Bangkok the SET also traded higher, up more than 1 percent to 357.8.

With markets in Malaysia, Taiwan, and China closed already, Singapore was Southeast Asia's center of attention.

Its Straits Times index finished the half day of trade with a gain of 4.26 points or 0.25 percent to 1740.68. Singapore Airlines put on 1.6 percent to S$12.90, but the custom chipmaker Chartered Semiconductor lost 2.4 percent to S$4.12.

The heaviest volume among blue chips was for UOB, which last traded at S$14.40.

In Hong Kong, China Mobile put on 4.55 percent to Hk$23, with analysts terming this a technical rebound after a 20 percent fall in the past month.

Reuters reported the stock was likely to remain unsettled, according to analysts, on fears that the company's average revenue per user is declining and uncertainty about when Beijing plans to stop charging mobile phone users for incoming calls and issue more mobile phone licences.

China's Mobile's chief rival, China Unicom, was up 4 percent to HK$7.75.

Clothing retailer Esprit Holdings closed 21.08 percent higher at HK$13.50 after the company obtained full ownership of the Esprit brand worldwide.

India's BSE was up 1.19 percent to 3536.20 near midday.