Asian markets off to a strong start

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-- Asian stocks got off to a strong start on Monday on hopes that the global economic recovery will gather pace in 2011.

The MSCI Asia Pacific index excluding Japan rose 0.8 per cent as it continued its longest winning streak since July. Hong Kong's Hang Seng index added 1.3 per cent, Singapore's Straits Times index gained 1.1 per cent and India's Sensex tacked on 0.7 per cent. Seoul's Kospi index gained 0.7 per cent to 2,066, it on track for a record close.

Markets in China, Japan, Australia, Thailand, New Zealand, and Vietnam were closed.

In Hong Kong, Hutchison Whampoa, the territory's best-performing blue chip last year, added 2.3 per cent on plans to buy several port and property assets from China Resources for HK$5.7bn. Foxconn International, the worst performer in Hong Kong last year, rose 3 per cent on bargain hunting.

New World Development, which gets 35 per cent of its revenue from China, added 2.5 per cent and Agile Property Holdings, a real estate developer in China, surged 4.2 per cent. China's manufacturing activity grew at the weakest pace in three months in December, raising the prospects that the government may not drastically tighten monetary policy to curb inflation.

In Taipei, financial shares received a boost from a local report that Taiwan's financial regulator would allow domestic funds to invest up to 30 per cent of their assets in China's stock markets, up from the current 10 per cent. Taiwan Life and Cosmos Bank both jumped 7 per cent, the daily limit, while China Life Insurance rose 3.9 per cent.

Technology stocks in Seoul extended gains with Samsung Electronics up 1.6 per cent and Hynix Semiconductor adding 4.6 per cent. Hyundai Motor rose 1.2 per cent and its affiliate Kia Motors also gained 1.2 per cent after its chairman, Chung Mong-koo, said the auto group targeted a 10 per cent increase in 2011 sales.

In Malaysia, IJM Land was down 3.1 per cent, extending Thursday's 11.7 per cent loss logged before its shares were suspended from trading. The company's plans to merge with Malaysian Resources were aborted after talks broke down last week. Malaysian Resources advanced 0.5 per cent.

Malaysia's headline stock index was 0.7 per cent higher, Indonesian stocks rose 0.7 per cent, Taiwan stocks added 0.6 per cent and Philippine shares gained 0.3 per cent.

In Manila, San Miguel jumped 13 per cent to the highest in at least 21 years after the company bought a stake in a phone company and a local paper reported that it may invest in a $452m water venture.

In foreign exchange markets, the euro was still weighed down by risk aversion amid continued uncertainty over Europe's sovereign debt problems. Against the US dollar, the euro was trading at $1.3291, from $1.3345 in late New York trade on Friday. The yen was trading at Y108.03 per euro from Y108.42, and it was at Y81.28 per dollar, from Y81.30.
 
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