Asian Stocks End Up After Volatile Session; China Falls (Bloomberg) (17-01-2008)

Jan. 17 (Bloomberg) -- Asian stocks ended higher, led by technology companies and Japanese property developers, after Merrill Lynch & Co. raised its rating on Samsung Electronics Co. and UBS AG said a drop in real-estate companies was overdone.

The MSCI Asia Pacific Index climbed 1.2 percent to 146.72 at 4:46 p.m. in Tokyo, after losing 4.7 percent drop in the two previous sessions. Japan's Nikkei 225 Stock Average advanced 2.1 percent to 13,783.45, rebounding from its lowest level in over two years. China's Shanghai Composite tumbled 2.63% to 5,151.63 points, after the government ordered banks to set aside more money in reserves.

Bank shares climbed elsewhere in Asia, led by National Australia Bank, after JPMorgan Chase & Co. reported a lower-than- estimated writedown and Wells Fargo & Co. posted results that topped analyst estimates. In Japan almost all listed financials recovered from yesterday’s slump, some with significant gains, as Mitsubishi UFJ gained 2.1%, Sumitomo advanced by 2.08% and Mizuho rose by 5.23%.

Samsung Electronics jumped 5.7 percent to 560,000 won, on an upgrade by Merrill Lynch, while Sharp Corp., Japan's biggest LCD maker, climbed 4.5 percent to 1,964 yen, on a Goldman, Sachs & Co. upgrade.

The real estate sector also contributed to the gains after the Topix Real Estate Index, which lost 18% this year too yesterday, recovered 5.7% today.

Developers also rose after the Nikkei newspaper said that the government's monthly economic report for January will say housing construction is showing signs of recovery. The newspaper didn't say where it got the information.

China ordered banks late yesterday to increase their reserves for the 11th time in 13 months to curb inflation in the world's fastest-growing major economy. Banks must put aside 15 percent of deposits, the most in at least 20 years. The government also ordered suppliers of grain, oil, meat and other staples to seek approval for price increases. Inflation soared to 6.9 percent in November.

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