Asian shares mostly up after Wall Street rally

HONG KONG: Asian stocks were mostly higher on Friday as traders followed a Wall Street surge but gains were tempered by profit-taking and data showing growth in manufacturing activity almost stalled in China last month.

Sentiment was given support by Greek lawmakers' agreement in a second vote to the implementation of austerity measures aimed at avoiding bankruptcy.

Tokyo gained 0.48 percent by the break and Seoul added one percent and Shanghai edged up 0.10 percent but Sydney fell 0.45 percent.

Hong Kong and Bangkok were closed for public holidays.

Regional markets have posted strong gains for most of the week, with Athens' approval of deep cuts and privatisation on Wednesday providing support as it helped avoid a devastating sovereign default.

Many had feared a default by Greece could spark another global financial crisis.

Greek MPs on Thursday passed legislation putting into place the 28.4-billion-euro ($40 billion) austerity package, despite fierce clashes in Athens.

Asian investors took their cue on Friday from a rally on Wall Street, where the Dow jumped 1.25 percent, its fourth straight gain, the broader S&P 500 rose 1.01 percent and the tech-heavy Nasdaq climbed 1.21 percent.

US markets were boosted by figures showing economic activity in the Chicago region had jumped from the month before, surprising analysts.

Tokyo took in its stride the Bank of Japan's quarterly Tankan survey, which showed business confidence among major manufacturers in June dropped to "minus nine" from "six" in March, the first negative reading in five quarters.

However, the result was no major surprise in the wake of the devastating impact of the March 11 earthquake and tsunami on the country's economy.

Shanghai rebounded from earlier losses to move into positive territory despite data showing growth in manufacturing activity virtually stopped in June, as the government clamps down on bank lending in a bid to tame inflation.

The official purchasing managers index (PMI) fell for the third straight month to 50.9 in June from 52.0 in May, the China Federation of Logistics and Purchasing said in a statement.

A reading above 50 indicates the sector is expanding while a reading below 50 indicates contraction.

On currency markets the euro edged down to $1.4475 in early Tokyo trade from $1.4499 in New York late Thursday, while holding steady at 116.85 yen.

The dollar changed hands at 80.68 yen, compared with 80.55 yen in New York.

Oil fell as investors locked in profits from recent price rises as a result of easing concerns over Greece and a weaker dollar.

New York's main contract, West Texas Intermediate for delivery in August, fell 61 cents to $94.81 a barrel, and Brent North Sea crude for August dipped 84 cents to $111.64.

Gold opened at $1,499.00-$1,500.00 an ounce in Hong Kong, down from its Thursday close of $1,507.00-$1,508.00. (AFP)