Asian indices hit fresh highs

STOCK REPORT

Asian stocks rose on Tuesday with China, Jakarta, Taiwan and India gained over a per cent each. Shanghai Composite was up 4.2 per cent at 2675.47, Sensex was up 1.13 per cent at 13942.24, Jakarta Composite was up 1.7 per cent to 1836.52 and Taiwan Taiex was up 1.24 per cent at 7920.80.

The Morgan Stanley Capital International Asia-Pacific, excluding Japan, Index rose on the first trading day of the year gaining 1.3 per cent to a record 402.33 at 5:23 p.m. Benchmark in Australia, Hong Kong and Indonesia all set new highs.

China Mobile posted the biggest jump in two months speculation it will sell shares in Shanghai for the first time possibly at a premium to the company's Hong Kong-listed stock. The Philippine market was the only one to drop in the first day of the year, down 0.37 per cent at 2976.85.

The MSCI measure, which rose for a fourth straight year in 2006, gained the most since December 20. Stock markets in China, Malaysia, New Zealand, Pakistan, Singapore and Thailand were all closed.

Hong Kong stocks climbed to a record at 20310.18, up 1.74 per cent. The trigger was China Mobile and PICC Property & Casualty Co which jumped on speculation that they will be the next companies to sell shares on the mainland at a premium to their Hong Kong-listed shares. Listings in China will definitely be a theme for this year, said Wilfred Sit, who helps manage $6 billion at Baring Asset Management (Asia) in Hong Kong.

European stocks climbed to a six-year high in the first day of trading this year on speculation earnings growth will be sustained. FTSE-100, CAC-40 and IBEX-35 gained over one per cent each.

National indexes advanced in all of the 15 western European markets that were open. The UK's FTSE 100 added 1.1 per cent, Germany's DAX increased 1 per cent and France's CAC 40 gained 1.2 per cent. You're going to make money no matter what you buy,'' said Roger Nightingale, a strategist at Millennium Global Investments in London, which oversees $4.3 billion. The background for equities looks good. Corporate profit is strong.

British Airways and Renault SA paced gains by companies sensitive to energy prices after oil declined. BHP Billiton led mining stocks higher as gold traded near a four-week high in Asia. Royal Ahold NV advanced after Wal-Mart Stores Inc. reported sales that exceeded its forecast.

US markets were closed on Tuesday in observance of the funeral of former President Gerald R Ford. Stocks fell in the US on the last trading day of the year after forecasts for warmer weather weighed on energy shares.