Asian markets edge up on bargain-hunting

Asian markets edged higher yesterday as bargain-hunters moved in after the previous day's losses, while better than expected Australian growth data sent Sydney stocks surging.
Traders took a tentative lead from the United States, where a surprise lift in consumer confidence was tempered by minutes from a Federal Reserve meeting that underscored the bank's concerns over the state of the nation's economy.
Regional markets were also given a lift by a key gauge in China showing manufacturing in the world's second biggest economy had expanded in July.
Tokyo rose 1.17 percent, or 102.96 points, to close at 8,927.02 after sinking 3.55 percent to a 16-month low Tuesday on the back of the strengthening yen.
Markets shrugged off multi-billion-dollar plans by the Bank of Japan to rein in the yen as well as an 11-billion-dollar rescue package aimed at boosting the flagging economy.
However, trading was light with investors taking to the sidelines as Prime Minister Naoto Kan and rival Ichiro Ozawa began campaigning for a September 14 poll to decide the next leader of the ruling Democratic Party of Japan.
The head of the DPJ is expected to become the next prime minister.
Dealers "are waiting to see what kind of policies will be outlined by Ozawa and Prime Minister Kan," Okasan Securities strategist Hideyuki Ishiguro told Dow Jones Newswires.
Sydney jumped 2.08 percent, or 91.5 points, to 4,495.7 – its biggest rise in two months – after figures showed the economy surged 1.2 percent in the June quarter and 3.3 percent over the year, smashing forecasts.
The Australian Bureau of Statistics said growth was up sharply from a revised 0.7 percent in the March quarter, which was achieved despite a drop-off in government stimulus.
Economists had expected a 0.9 percent rise from the March quarter and 2.8 percent from a year earlier.
The news also sent the Australian dollar 0.25 percent up to 89.70 US cents.
Hong Kong rose 0.43 percent, or 87.34 points, to 20,623.83 after two separate gauges of Chinese manufacturing showed improvement.
The official Purchasing Managers Index rose to 51.7 in August from 51.2 in July, the first rise in the index following three months of declines.
A reading above 50 means the sector is expanding, while below 50 indicates a decline.
And the HSBC China Manufacturing Purchasing Managers Index hit a three-month high of 51.9 in August from 49.4 in July.
However, Shanghai fell 0.60 percent, or 15.92 points, to 2,622.88, down from earlier highs on fears over August inflation data, which analysts say could show a rise from July's 3.3 percent due to higher food costs.
On forex markets the dollar fetched 84.36 yen in Tokyo afternoon trade, up from 84.22 late Tuesday in New York. The euro rose to 1.2704 dollars from 1.2681 dollars in New York and to 107.17 yen from 106.80.
On Wall Street the Dow rose 0.05 percent after the Conference Board's consumer confidence index rose unexpectedly in August to 53.5, beating most economists' forecast of 50.0.
But concerns returned after minutes from the latest meeting of the Fed's rate-setting committee showed the board was worried about a "sluggish" economic recovery.
The focus will now be on Friday's tensely awaited US employment report, with most analysts forecasting non-farm payrolls to fall 118,000 in August and unemployment to edge up to 9.6 percent.
Oil prices were higher, with New York's main contract, light sweet crude for delivery in October, adding 45 cents to 72.37 dollars a barrel and Brent North Sea crude for October gaining 43 cents to 75.07.
Gold closed at 1,249.30-1,250.30 dollars an ounce, up from Tuesday's closing price of 1,234.80-1,235.80 dollars.

In other markets:

• Seoul closed 1.26 percent, or 21.94 points, higher at 1,764.69.
• Taipei rose 0.68 percent, or 51.97 points, to 7,668.25.
TSMC rose 0.34 percent to 59.1 Taiwan dollars while Formosa Plastics was 0.28 percent higher at 71.2.
• Manila rose 0.76 percent, or 27.11 points, to end at 3,593.34.
Metro Pacific Investments lifted 0.1 percent to 3.46 pesos and Bank of the Philippine Islands rose 0.1 percent to 48.10 while power generation company First Gen rose 0.6 percent to 10.40.
• Wellington ended 1.35 percent, or 41 points, higher at 3,077.10.
New Zealand Oil & Gas rose 2.6 percent to 1.18 New Zealand dollars and Pike River Coal was 5 percent higher at 1.05 but Contact Energy slipped 0.7 percent 5.61 and Telecom was 0.5 percent off at 2.05. (AFP)