Singapore swings after Sars

THE region's markets cantered to the week's finishing line on Friday spurred on by positive signals, locally and from further afield.

Singapore shares were among the gainers, driven by growth data showcased just ahead of the start of trade. The Straits Times index, which bottomed at 1205.31 in March, rose 8.99 points or 0.5% to 1747.11 as traders digested a rosy snapshot of the just-completed third quarter.

Official estimates for the July to October quarter showed a breakneck 15% expansion on the preceding period. The surge came as businesses stepped on the accelerator after the misery inflicted by the killer Sars virus, which had triggered a record 11.4% contraction in the second quarter.

Banks, airlines and developers all enjoyed a lift. United Overseas Bank climbed 20 cents or 1.4% to S$14.10, State-linked DBS Group was up 10 cents to S$14.50, and smaller rival Oversea Chinese Banking Corp firmed 10 cents or 0.9% to S$11.80.

Flag-carrier Singapore Airlines, among the listed companies most beaten down by Sars, rose 10 cents to S$11.90. City Development also took heart from the numbers, gaining 10 cents or 1.7% to S$5.95, while Keppel Land was two cents or 1.1% higher at S$1.78.

Earlier this week Deputy Prime Minister Lee Hsien Loong suggested Singapore's growth could rise to as high as 5% next year, the best since 2000.

Brokers said an extra reason to be cheerful came overnight from Wall Street, where the Dow, Nasdaq and S&P 500 all pushed higher as first-time jobless claims dropped to an eight-month low. State-linked chipmaker Chartered Semiconductor was among Singapore techs driven higher, climbing four cents or 2.3% to S$1.76.

Hong Kong exporters were in favour on the positive US signals, helping push the benchmark index closer to the 12,000-point level.

Li & Fung, which sends garments to the US and other developed markets, jumped 20 cents or 1.5% to HK$13.20 and micro-motor maker Johnson Electric put on 20 cents or 1.7% to HK$11.75.

Developers managed to withstand-news that the government was likely to resume land sales after a protracted freeze. Dealers said there was little chance that large, mass-markets sites would go to auction.

Cheung Kong, run by Asia's richest businessman Li Ka-shing, strengthened 17 cents or 1.2% to HK$65.25 and Sun Hung Kai Properties 50 cents or 0.8% to HK$64.25. The Hang Seng index rose 43.14 points or 0.4% to 11,843.51.

Japanese shares were buoyant ahead of a three-day break as tech stocks rose on improved prospects and exporters marched ahead.

Prime Minister Junichiro Koizumi seems on the verge of dissolving the lower house and calling an election next month. Traders said the poll, likely to take place on 9 November, could cause some uncertainty.

Advantest, which makes chiptesting equipment, bolted 450 yen or 6.2% higher to 7750. NEC gained 31 yen or 3.6% to 890, and Tokyo Electron rose to 7590 yen, ahead 320. The Nikkei 225 Average moved up 254.60 points or 2.4% to 10,786.04.

Resource stocks, higher on expectations of faster global growth, aided Australia's All Ordinaries index. Rio Tinto rose 37 cents or 1% to A$34.96. The benchmark added

9.1 points to 3266.0.