SINGAPORE (Thomson Financial) - Asian stocks rose Monday with Taiwan leading
the advance with a 4 percent rally following the landslide presidential election
victory for the opposition Kuomintang's Ma Ying-jeou at the weekend.
Ma has vowed to increase trade and business ties with China and revitalise
domestic demand.
The Taiex was last up 4 percent at 8,866.75, led by construction, financial
and transport stocks.
Goldman Sachs said the opposition victory should be good for stocks, " given
their more market-friendly stance on cross-strait policies, and a lower
likelihood of an escalation in cross-strait tensions going forward.
"Over the longer term, we believe the possible breakthroughs in
cross-straits policies could lift potential growth via productivity gains and
investments," said analyst Enoch Fung.
Fung is forecasting Taiwanese GDP growth of 3.8 percent for 2008, followed
by 4.6 percent in 2009.
Other markets posted more modest gains. The blue-chip Nikkei 225 Stock Index
ended the morning session up 46.33 points or 0.4 percent at 12,528.90, boosted
by a pullback in the yen.
The broader Topix index rose 8.42 points or 0.7 percent to 1,228.46.
Before the opening bell, the government announced that sentiment among
large Japanese companies deteriorated in the first quarter, reflecting growing
concern about profits amid higher procurement costs and increased uncertainty
about demand at home and abroad.
"While weak business sentiment dampened the market, investors were relieved
that concern [about the US economy] is less pessimistic than before," said
Hiroichi Nishi, equity chief at Nikko Cordial Securities.
Elsewhere, the Singapore Straits Times was up 2.0 percent at 2,882.38, with
gains fueled by a retreat in commodity prices. New York's benchmark oil futures
contract fell 1.41 dollars to 100.43 dollars per barrel in early Asian trading,
while gold was flat at 912 dollars an ounce.
The South Korean Kospi was last up 0.5 percent at 1,653.21 and the Malaysian
KLSE Composite was up 0.5 percent at 1,194.42.
But the Shanghai Composite bucked the trend, shedding 72 points, or 1.9
percent, to 3,725.29 as investors locked in recent gains.
ciara.linnane@thomson.com
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