Asia markets climb as oil prices decline

Asian shares were broadly higher yesterday, lifted by retreating oil prices and positive numbers from the US despite more gloomy news from debt-hit Europe. Tokyo’s Nikkei 225 index notched its highest finish in seven months, up 0.92%, or 88.59 points, at 9,722.52, its loftiest close since August 2. Hong Kong’s Hang Seng index closed 1.65%, or 350.87 points, higher at 21,568.73. Cathay Pacific rose 5.7% to HK$14.88 and was the best-performing blue chip, as lower oil prices eased concerns about fuel costs. The Shanghai Composite Index edged up 0.20%, or 4.80 points, at 2,451.86. It has risen around four% since Monday last week. “Crude prices pulled back... as concerns that high oil prices might curb economic growth, along with the stronger dollar, countered supportive fears about Iran and potential supply disruptions,” said Phillip Futures. Japan’s benchmark Nikkei had declined in morning trade as a stronger yen took its toll and chip-related shares came under pressure after DRAM chip-maker Elpida Memory filed for bankruptcy protection on Monday. “But the Nikkei ended in positive territory as some players chased shares at still reasonable prices, which proved that the recent buying sentiment is still alive,” said Hirokazu Fujiki, a broker at Okasan Securities. “US economic indicators are providing a support for overall market sentiment,” Daiwa Securities head of investment strategy and research department Kazuhiro Takahashi told Dow Jones Newswires. Australia bucked the positive trend, with the benchmark S&P/ASX 200 down 0.11%, or 4.7 points at 4,262.7. German lawmakers voted on Monday to endorse a second multibillion euro lifeline for Greece after Chancellor Angela Merkel warned failure to act would run incalculable risks. Meanwhile ratings firm Standard & Poor’s declared Greece in “selective default” after banks agreed to write off more than half of their Greek debt holdings in a second EU bailout of the country. In Spain, Finance Minister Cristobal Montoro said the country ended 2011 with its strained public finances in much worse shape than first thought, with the public deficit 8.51% of output, way above the 6.0-percent target. In other markets in Asia; South Korea’s KOSPI index closed 0.63%, or 12.53 points, higher at 2,003.69 with large-cap chipmakers surging after Japanese rival Elpida Memory filed for bankruptcy protection; In Wellington, the NZX 50 rose 6.35 points or 0.19% to 3,309.79, largely due to a 27% surge in Australia-based food company Goodman Fielder on takeover speculation; Singapore’s main Straits Times Index gained 22.95 points, or 0.78%, to 2,969.73; Kuala Lumpur’s main index closed down 2.31 points, or 0.15%, at 1,556.73; Bangkok gained 0.99%, or 11.22 points, to 1,146.26; Indonesian shares rose 1.10%, or 42.54 points, to 3,903.56; and Philippine shares closed 0.44% higher, with expectations of a central bank interest rate cut later this week, dealers said.Taipei was closed for a public holiday.