Asian markets surge on Iraqi offer


Shares in airlines surged as oil prices tumbled

Staff and wires

HONG KONG, China -- Asian markets ended higher Tuesday led by exporters and airline shares, which soared on news of Iraq's offer to unconditionally re-admit arms inspectors.

In Tokyo, the tech-sensitive Nikkei average closed up 3.27 percent at 9,543.94, while the Topix added 2.64 percent to 932.42, as the news on Iraq, combined with a softening yen, pushed exporters higher.

Comments from Japan's top financial diplomat, Haruhiko Kuroda, that the forex market was moving in the "appropriate" direction squeezed the yen, promising a boost in overseas profits of exporters.

Sony Corp., the world's largest consumer electronics maker, was one of the biggest gainers in the region, climbing 6.46 percent. Canon climbed 4.16 percent to 4,260 yen.

In Seoul, the main Kospi closed up 3.18 percent at 726.80, while the over-the-counter Kosdaq finished up 3.31 percent at 55.22, as institutions bought airlines and blue chip shares.

Australia's benchmark S&P/ASX 200 index closed up one percent, or 31 points, at 3,156.7 in a late rally led by media heavyweight News Corp Ltd and life insurer AMP.

In Taiwan, the main Taiex jumped 3.96 percent to 4,633.86 as it moved towards the end of the trading day.

In Singapore, the Straits Times Index added 1.63 percent at 1,466.06 in late afternoon trade, while Hong Kong's Hang Seng Index rose 1.73 percent at 9,669.59.

Airlines higher on oil price drop

MORE STORIES

•	Electronics lift Singapore exports

•	Asian airlines soar as war fears ease

•	Oil stocks, dollar surge on Iraqi offer

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Crude prices tumbled more than four percent as fears of imminent war in the oil-rich Middle East eased, sending airline stocks sharply higher in Asia. (Iraq to readmit inspectors)

South Korea's flagship carrier Korean Air Lines soared 7.2 percent to 2,980 won, while Hong Kong's Cathay Pacific gained 5.47 percent to HK$10.60.

Singapore Airlines climbed four percent to S$10.40 in afternoon trade. Taiwan's China Airlines gained 3.98 percent also in late afternoon trade, while rival EVA Airways rose the seven percent daily trading limit.

Qantas Airways, Australia's largest airline, closed up 1.7 percent at A$4.11. (Airlines take off)

But the oil price slide weighed on Australia's largest independent oil company, Woodside Petroleum, whose shares fell 1.8 percent to A$13.18, while shares in its smaller rival Oil Search fell 4.9 percent to 78 cents.

Exporters higher

Among major exporters, Toyota Motor Corp. Japan's largest automaker, added 4.89 percent to 3,110 yen, while rival Honda Motor surged 5.57 percent to 5,120 yen.

In Seoul, Chip titan Samsung Electronics Co Ltd rose 4.43 percent to 342,000 won. South Korea's largest mobile carrier SK Telecom Co. added 3.66 percent to 240,500 won, while steelmaker POSCO Co. rose 3.45 percent to 120,000 won.

In Australia, shares surged late Tuesday as investors expected a big bounce offshore after the apparent Iraqi backdown.

News Corp shares ended four percent higher at A$10.03, while AMP's shares jumped 2.9 percent to close at A$13.31.

In Taiwan, stocks were moving higher in late afternoon trade as gains in heavyweight electronic shares lifted the market from nine-month lows.

Memory chip maker Nanya Technologies gained 4.07 percent to T$28.10 , while United Microelectronics, the world's second-largest contract chipmaker jumped 4.63 percent.

In Singapore, shares are expected to close higher after an increase in its non-oil domestic exports.

Singapore's networking firm Datacraft Asia surged 6.8 percent to S$0.71, while chip testing firm ST Assembly soared 5.2 percent to S$1.01.

The city-state announced Tuesday double-digit gains in domestic exports for August which matched market expectations, as shipments of key electronics products picked up while non-tech goods like pharmaceuticals continued to grow. (Full story)

Reuters contributed to this report.