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Asia soars on hope of quick war
TOKYO, Japan -- Beleaguered stock markets around Asia soared and oil prices fell Tuesday as investors bet on a quick, decisive war in Iraq. While Tokyo's Nikkei finished off its highs for the session, it closed up 1.05 percent at 7,954.46, snapping a 1.64 percent fall the previous day near 20-year lows. Other markets across the region rallied with Seoul and Taiwan closing more than four percent higher, and Hong Kong, Singapore and Australia all shooting up around three percent, as they took their cue from Wall Street's fourth straight session of gains. The recovery came after U.S. President George W. Bush said that Iraqi leader Saddam Hussein must leave Iraq within 48 hours or face military action. (48 hours) Analysts said Bush's ultimatum took away uncertainty in the market, pushing oil prices down after they closed at $40 a barrel in February, a level not seen since the Gulf War. (Oil prices fall) Responding to the news, Asian airlines said they would cut services and slash costs ahead of an expected travel and cargo slump, even as shares rose on hopes that a U.S.-led assault on Iraq will be brief.(Slashing back) Tokyo
While Tokyo stocks hit 8,000 at one juncture, gains were trimmed as buying spurred by Washington's ultimatum to Saddam gave way to profit-taking on such winners as Nomura Holdings Inc. Sentiment was also stung after Japanese Prime Minister Junichiro Koizumi said he would support Washington despite the public's opposition to a U.S.-led attack on Iraq.(Japan stands with Bush) The broader TOPIX index of all first section stocks was up 0.82 percent at 783.56. Advantest, Japan's biggest chip-testing device maker, soared almost 10 percent before ending up 5.26 percent at 4,800 yen, while electronics giant Sony Corp ended up 2.36 percent at 4,340 yen, off a high of 4,430. In the brokerage sector, industry leader Nomura slipped from its high of 1,320 yen and finished trading up 4.63 percent at 1,287 yen. Third-ranked Nikko Cordial Corp was up 5.41 percent at 331 yen. After the close of trade, Japan's financial watchdog said it had ordered Nikko Salomon Smith Barney, an investment banking unit owned by Nikko and Citigroup Inc, to suspend all stock trading on its own account for 20 business days as a penalty for manipulating stock prices. Soaring marketsIn other markets, Seoul's leading indicator, the KOSPI, finally hauled itself out of a week-long slide, ending up 4.28 percent at 537.31, bouncing from a 17-month low set on Monday. South Korean stocks have been mauled by a slew of corporate scandals involving major conglomerates, as well as security tensions spurred by North Korea's nuclear ambitions. But on Tuesday, bargain-hunting hit investors, with Korean Air soaring by its daily 15 percent limit to close at 10,600 won. Taiwan stocks closed 4.17 percent higher at 4,539.72, making its largest gain since Feburary 17, with heavyweight semiconductor shares leading the surge. Australian shares also rebounded as the nation's Prime Minister John Howard formally committed the country's troops to taking part in the likely war against Iraq. (Set for war) Australia surged 3.5 percent to 2,835.1, its biggest one-day rally since the index began in April, 2000. Australian media giant News Corp soared nearly eight percent. Hong Kong's main stock index closed nearly three percent higher, its biggest one-day gain since early November, helped by a strong performance by China Mobile, which announced its first ever dividend.(China Mobile jumps) The Hang Seng index closed up 2.7 percent at 9041.51. New Zealand shares finished 1.31 percent higher at 1,895.45. Reuters contributed to this report.
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