Asian Shares Inch Higher In Thin Year-end Trading

(RTTNews) - Asian stock markets ended mostly higher on Tuesday after drifting lower the previous day, weighed down by downbeat industrial profit figures out of China and weakness in oil prices as Iran repeated its goal of boosting exports.

While a relentless slide in oil prices kept investors on edge, signs of stability in mainland China supported underlying sentiment. Australian and New Zealand shares led regional gains, defying a weak lead from Wall Street overnight.

U.S. stocks closed marginally lower in light trade on Monday, with the S&P 500 and the Dow Industrials ending in negative territory for the year, as a sharp sell-off in oil prices weighed on energy stocks.

China's Shanghai Composite index closed up 29.96 points or 0.85 percent at 3,563.74 after having tumbled 2.6 percent the previous day. Investor confidence was bolstered after lawmakers approved a proposal to reform stock listings and the People's Bank of China said it would "flexibly" use various policy tools to maintain appropriate liquidity and keep the yuan stable. Hong Kong's Hang Seng index gained 80 points or 0.36 percent to finish at 21,999.62.

Japanese shares ended a choppy session higher as the year draws to a close. The benchmark Nikkei average rose 108.88 points or 0.58 percent to 18,982.23, led by gains in pharma and construction stocks. The broader Topix index gained 0.93 percent to close at 1,543.39.

Toshiba Corp rallied 2.7 percent on a Nikkei report that it intends to ask for an additional 300 billion yen or $2.49 billion in credit lines from its main lenders by the end of January. Asahi Group Holdings rose 0.4 percent after saying it's considering buying U.S.-based soft drinks maker Talking Rain.

Oil explorer Inpex Corp rose 0.9 percent and Japan Petroleum advanced 1.7 percent. Japan Post Holdings and Japan Post Insurance dropped about 4 percent each ahead of their inclusion in the rebalanced Topix index on Wednesday.

Australian shares rallied in thin holiday trade as trading resumed after a four-day break. The benchmark S&P/ASX 200 jumped 59.70 points or 1.15 percent to 5,267.3, extending gains for the eighth straight day. The broader All Ordinaries index climbed 59.50 points or 1.13 percent to 5,315.60.

The big four banks closed up between 1.4 percent and 1.8 percent. Retailers JB Hi-Fi and Harvey Norman rallied 3-5 percent, buoyed by hopes of strong Christmas sales. BHP Billiton, Rio Tinto and Fortescue Metals lost 1-3 percent despite iron ore prices pushing higher overnight.

Energy stocks turned in a mixed performance, with Santos losing 0.3 percent and Oil Search declining 0.6 percent while Woodside Petroleum advanced 0.8 percent. Oil prices traded flat in Asian deals after plunging over 3 percent in New York trading overnight.

Seoul shares erased early losses to end on a flat note. The benchmark Kospi average closed up 2.25 points or 0.11 percent at 1,966.31, with Samsung Engineering shares climbing 30 percent after the company won a major refinery contract from Pemex in Mexico.

Market heavyweight Samsung Electronics lost 1 percent on reports the smartphone giant plans to expand its fledgling mobile payment service in the United States next year.

New Zealand shares rose in light trade, with the benchmark NZX-50 climbing 66.91 points or 1.07 percent to close at 6,292.44, a record high. A2 Milk jumped 15 percent, continuing its strong rally and closing above $2 for the first time, while Chorus and Xero climbed 2-3 percent.

Elsewhere, India's Sensex was marginally higher in lackluster trade, Indonesian shares were flat, Malaysia's KLSE Composite was up 0.8 percent and Singapore's Straits Times index was rising 0.4 percent while the Taiwan Weighted dropped 0.8 percent.

Singapore's producer prices continued to decline in November, though at a slower pace than in the previous month, figures from the Department of Statistics showed.