Asian markets were mostly higher Thursday as U.S. stocks rose overnight after the Federal Reserve left interest rates unchanged and sharpened its focus on inflation.
Shares of exporters such as Japan's Sony Corp. (NYSE:SNE) and South Korea's Samsung Electronics Co. ranked among the risers, while Hong Kong stocks extended gains after a broker upgrade of bourse operator Hong Kong Exchanges & Clearing (HongKong:0388) .
In Tokyo, the Nikkei 225 Average added 0.8% to 13,938.63 and the broader Topix index climbed 0.6% to 1,354.60, overcoming early weakness.
Hong Kong's Hang Seng Index rose 0.6% to 22,778.28, on top its 0.8% gain Wednesday, and the Hang Seng China Enterprises Index added 0.9% to 12,311.28. China's Shanghai Composite slipped 1.1% to 2,873.02, after rising about 5% in the previous two sessions.
"I think the market is pretty sure that the Fed won't increase rates at least until August," said Peter Pak, vice president at BOCI Research in Hong Kong. Referring to the local markets, he said "sentiment has improved a little bit, but not much, after the A-shares in Shanghai bounced from their recent lows."
Pak said the Hang Seng Index was likely to rise above the 23,000-point level by the end of this month.
Elsewhere, the S&P/ASX 200 jumped 1.8% to 5,329.20 in Sydney on banks such as Commonwealth Bank of Australia, after a string of weak finishes recently.
New Zealand's NZX 50 index added 0.4% to 3,292.88, South Korea's Kospi rose 0.7% to 1,730.20, Taiwan's Weighted index inched up 0.2% to 7,866.47 and Singapore's Straits Times index rose 0.7% to 3,008.84.
India's Sensitive Index rose 1% to 14,362.37 in the early minutes, while the broader S&P/CNX Nifty climbed 0.7% to 4,280.45.
Regional detail
Among exporters, shares of Sony Corp. (NYSE:SNE) (SNE) jumped 3.9% and Kyocera Corp. (NYSE:KYO) ( KYO) added 0.7% in Tokyo, while Samsung Electronics (SSNGY) rose 1.4% in Seoul on the back of strong gains for technology stocks overnight in the U.S.
In Sydney, Commonwealth Bank stock surged 4.7% and Westpac Banking Corp. (NYSE:WBK) climbed 4.5%, on bargain buying after steep declines recently.
Shares of BHP Billiton (BHP) rose 0.5% in line with the broad market. The stock wasn't much affected by a Hong Kong newspaper report that the Chinese government and steel industry officials were considering a boycott of iron ore imports from the company to apply pressure on the Anglo-Australian miner not to raise prices too much.
Shares of Murchison Metals dropped 1.4%, in Sydney, after Australian Treasurer Wayne Swan said the government will decide whether to approve a Sinosteel Corp. application to take a stake in the company within 90 days.
In Hong Kong, bourse operator HKEx advanced 1.4%, after Citigroup updated the stock to a buy from sell as valuations were "starting to look more attractive for longer-term investors."
Overnight on Wall Street, the Dow Jones Industrial Average (DJI) inched up 4.40 points to 11,811.83 and the Nasdaq Composite (RIXF) climbed 32.98 points to 2,401.26, while the S&P 500 index (SPX) advanced 7.68 points to 1,321.97.
Earlier on Wednesday, the Federal Reserve left its key interest rate unchanged at 2% and closed the door on a series of rapid rate increases, but sharpened focus on inflation, leaving open the possibility of rate hikes in future.
In the currency markets, the U.S. dollar bought 107.89 yen in Asia, compared with 107.79 yen late in New York.
August crude-oil futures slipped as much as 22 cents to $134.33 a barrel in electronic trading, after ending $2.45 lower at $134.55 a barrel on the New York Mercantile Exchange.
(END) Dow Jones Newswires 06-26-08 0047 Copyright (c) 2008 Dow Jones & Company, Inc.
