Most Asian markets advance; SKorea up on bank plan

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(Agencies)
Updated: 2008-10-20 13:33

HONG KONG - Most Asian stock markets advanced Monday, with South Korean shares gaining for the first time in five days as the government moved to shore up the country's banking system amid the global credit crisis.

Japan's Nikkei 225 stock average rose 0.53 percent to 8,739.70, and the Hang Seng Index in Hong Kong added 3.7 percent to 15,090.91.

In South Korea, the Kospi added over 1.3 percent after the government said it would provide up to US$100 billion to secure banks' maturing foreign currency for three years.

The country's stock market and currency have spiraled lower in recent days as analysts questioned the ability of South Korean banks to acquire dollars to refinance loans.

Chinese mainland shares, meanwhile, trended lower, hurt by new government figures showing the country's economic growth eased to 9.9 percent in the third quarter of this year compared to a year ago.

The reading, while still robust, fed into anxiety that deteriorating financial and economic conditions around the world were taking a toll on Asia.

Shanghai's key index fell more than 0.7 percent.

In Tokyo, shares rose amid hopes for better-than-expected corporate earnings.

Panasonic Corp. jumped 6.6 percent after the Nikkei business daily reported over the weekend that, helped by strong TV sales, the electronics giant would beat its interim operating profit forecast by more than 20 billion yen (US$197.3 million).

Steelmakers Nippon Steel Corp. and JFE Holdings Inc. also gained on reports that they would be raising their profit forecasts for the year ending March 2009.

South Korean financials were mostly higher. Shinhan Financial Group Ltd. gained around 3 percent, while KB Financial Group Inc., the holding company for top South Korean lender Kookmin Bank, added about 0.2 percent.

Stock measures in Australia, New Zealand and Singapore gained.

The dollar traded at 101.73, up about 0.1, and was little changed against the euro.