Asian markets move higher

// 01.02.2007

SINGAPORE (Reuters) -- Asian stock markets powered higher on Thursday on strong U.S. growth data and a steady interest rate picture.

South Korean stocks added 1.7 percent, led by a rebound in exporters and Hong Kong gained 1.5 percent on bullish property shares, while Tokyo rose 0.8 percent to end at the highest closing level since April last year.

Data showed the world's largest economy, also Asia's top export market, grew at a stronger pace than expected in the final quarter of 2006 without raising inflation pressures.

A brokerage upgrade for Sony and a 16.5 percent surge in NGK Insulators helped Tokyo's Nikkei advance to end the day at 17,519.50 points.

Shares in NGK leapt after the company raised its profit forecast. Sony climbed 2 percent after brokerage Nikko Citigroup lifted its rating on the electronics firm to "buy" from "hold" and boosted its target share price.

Investors were betting that Sony, Sharp and other manufacturers would continue to see benefits from the weaker yen, said Masayoshi Okamoto, head of dealing at Jujiya Securities.

MSCI's measure of Asian stocks excluding Japan rose 0.8 percent, after shedding 0.82 percent in January.

Japanese government bonds rose to catch up with the U.S. rally. The benchmark 10-year JGB yield fell 0.5 basis point to 1.690 percent while the two-year yield fell 1.0 basis point to 0.705 percent.

South Korea's KOSPI ended with the biggest points gain in three weeks, helped by exporters such as LG Electronics and Hyundai Motor, which both gained more than 1.3 percent on data showing strong momentum in overseas shipments. Samsung Engineering jumped 5.4 percent.

Lenders such as Kookmin Bank gained on renewed hopes for South Korea's export-dependent economy. Kookmin, the country's largest lender, ended up 3.5 percent.

Australian shares ended at another record closing peak as Rio Tinto climbed on expectations of strong earnings and on firmer metal prices, while Alumina gained on share-buyback prospects.

Alumina, which owns 40 percent of the Alcoa World Alumina and Chemicals joint venture with Alcoa, jumped 5.6 percent after its 2006 net profit rose 62 percent.

Rio, the world's second-biggest miner, gained 2.2 percent. The company reported after the close of trade that second-half net profit rose 25 percent to $3.59 billion, below market forecasts of about $4 billion.

The benchmark S&P/ASX 200 Index added 40.7 points to 5,814.1.