Shares in Hong Kong rose to a 29-month closing high yesterday as investors bet on a new year rally by piling into select blue chips.

The Hang Seng Index advanced 156.20 points, or 1.26 percent, to 12,544.58 - its highest close since July 16, 2001, when it finished at 12,624.53. The Hang Seng rose 4.74 points, or 0.04 percent, on Wednesday.

Turnover came to HK$15.92 billion (US$2.04 billion), up from Wednesday's HK$15.53 billion (US$1.99 billion).

Ports-to-telecom conglomerate Hutchison Whampoa gained 5.56 percent, finishing at HK$57.00 on expectations it would soon launch third-generation wireless telephone services in Hong Kong.

The company, controlled by Hong Kong billionaire Li Ka-shing, said yesterday it would unveil details of its 3G services on Monday.

Tokyo stocks advanced 1.6 percent Thursday following the US dollar's rise overnight against the Japanese yen on what was believed to be market intervention by Japanese monetary authorities.

The Nikkei Stock Average of 225 issues closed up 164.58 points, or 1.66 percent, at 10,075.14 points.

On Wednesday, the index lost 213.72 points, or 2.11 percent, to 9,910.56, finishing below the psychologically important 10,000-point-level for the first time since the November 21 finish of 9,852.83.

The dollar was trading at 108.27 yen, down 0.35 yen from late Wednesday in Tokyo but unchanged from the 108.27 yen it bought in New York later that day. Its range in Tokyo was 108.15 yen to 108.46 yen.

On the stock market, technology and exporter blue chips attracted investors thanks to the dollar's stability in New York. Technology issues such as Canon, TDK and Tokyo Electron, and automakers Honda Motor, Nissan and Toyota led yesterday's gains.

(China Daily December 12, 2003)