Major Asian markets mostly up after US, Europe gains

Students walk past an electronic board displaying Japan’s Nikkei stock index and other financial indexes, in Tokyo on March 12, 2015. Major Asian markets mostly advanced Monday, March 23, following rallies on Wall Street and in Europe, while the dollar continued to struggle after the Federal Reserve dampened expectations for an early interest rate rise. AP PHOTO/SHUJI KAJIYAMA

HONG KONG–Major Asian markets mostly advanced Monday following rallies on Wall Street and in Europe, while the dollar continued to struggle after the Federal Reserve dampened expectations for an early interest rate rise.

Tokyo ended 0.99 percent higher, adding 194.14 points, to 19,754.36 while Shanghai surged 1.95 percent, or 70.41 points, to 3,687.73 and Hong Kong added 0.49 percent, or 119.27 points, to 24,494.51.

Seoul was flat, dipping 0.65 points to 2,036.59 and Sydney eased 0.32 percent, or 19.4 points, to 5,956.1.

With few catalysts to drive business early in the week, investors took their lead from their US counterparts who have been cheered by the Fed’s dovish comments on rates.

While the central bank on Wednesday opened the door for a rise this year, it said there were still weaknesses in the US economy, including low inflation and soft manufacturing. The news sent global shares soaring and the dollar tumbling.

In New York on Friday the Dow jumped 0.94 percent, the S&P 500 climbed 0.90 percent and the Nasdaq added 0.68 percent to end above 5,000 points for the first time since March 2000 and for only the fourth time ever.

European markets also surged, helped by Greece’s promise to submit fresh bailout reform plans. London’s FTSE closed above 7,000 points for the first time in its history, while the Paris CAC 40 is at levels not seen since early 2008.

In currency trading on Monday the dollar bought 120.09 yen in afternoon trade, down from 120.11 yen in New York and well off the 120.71 yen in Tokyo earlier Friday.

‘Vulnerable to pullback’

The euro bought $1.0770 compared with $1.0821 but is well up from the levels below $1.05 seen at the start of last week. The single currency was also at 129.41 yen against 129.98 yen.

“The overriding factor for the Fed is whether they can afford to overstimulate the economy or raise rates too soon,” Tim Schroeders, a portfolio manager at Pengana Capital Ltd. in Melbourne, told Bloomberg News.

“They can’t be too aggressive in raising rates as the underlying US economy isn’t as strong. Equities will continue to trend higher but as valuations become stretched, markets will be more vulnerable to a pullback.”

Oil prices drifted lower again owing to ongoing concerns about a global supply glut.

US benchmark West Texas Intermediate for May delivery was down 95 cents at $45.62 and Brent tumbled 85 cents to $54.47.

Gold fetched $1,183.26 against $1,172.01 late Friday.

In other markets:

— Taipei was marginally higher, edging up 8.40 points to 9,758.09.

Taiwan Semiconductor Manufacturing Co. closed 0.32 percent lower to Tw$153.5 while Hon Hai Precision Industry gained 0.54 percent at Tw$93.5.

— Wellington was also slightly higher, putting on 3.85 points to 5,875.23.

Telecom giant Spark rose 2.77 percent to NZ$3.155 and Trade Me slipped 0.27 percent to NZ$3.70.

— Manila closed 0.28 percent, or 22.11 points, higher at 7,840.49.

SM Investments was down 0.22 percent at 900 pesos, Philippine Long Distance Telephone rose 0.64 percent to 2,828 pesos and Metrobank added 0.42 percent to 95.55 pesos.

— Singapore closed down 0.07 percent, or 2.31 points, to 3,410.13, with little market reaction to the death of founding prime minister Lee Kuan Yew.

DBS Bank rose 0.75 percent to Sg$20.21 while oil rig maker Keppel Corp. gained 0.11 percent to Sg$8.86.

— Mumbai fell 0.24 percent, or 69.06 points, to 28,192.02 points.

Bharat Heavy Electricals fell 3.62 percent to 236.85 rupees, while National Thermal Power Corporation rose 3.20 percent to 150.15 rupees.

— Kuala Lumpur closed 7.80 points lower, or 0.43 percent, at 1,795.85.

Public Bank dropped 0.97 percent to 18.42 ringgit and Tenaga Nasional lost 2.47 percent to 14.24, while Sime Darby rose 0.32 percent to 9.29 ringgit.

— Bangkok dropped 0.65 percent, or 9.95 points, to 1,520.01.

Airports of Thailand added 2.02 percent to 303.00 baht, while supermarket operator Big C Supercenter slid 2.20 percent to 222 baht.

— Jakarta ended down 0.11 percent, or 5.97 points, at 5,437.10.

Miner Aneka Tambang gained 1.69 percent to 900 rupiah, while property developer Pakuwon Jati slipped 2.80 percent to 520 rupiah.