Most Asian markets rallied Tuesday on optimism about corporations' earnings outlooks, with shares in Australia, Hong Kong, Indonesia and Malaysia hitting record highs. Chinese stocks dipped, REPORTED AP. South Korea's benchmark index breached the 2,000 level for the first time in a run that has lifted the market 39 percent so far this year. Domestic investors have poured into the market, seeking value in traditional issues such as construction, shipbuilding and steel companies that have benefited from overseas demand, most notably in neighboring China's booming economy. The Korea Composite Stock Price Index rose as high as 2,005.02 before slipping back to close marginally lower at 1,992.26. The index closed at a record 1,993.05 on Monday. In Tokyo, stocks bounced back modestly on hopes that upcoming earnings season will show corporations are turning in solid results. The Nikkei 225 index rose 38.39 points, or 0.21 percent, to 18,002.03 points. The index was in negative territory in morning trading due mainly to concerns about the impact of a stronger yen, which rose to a two-month high against the dollar. But investors snapped up electronics and banking shares in afternoon, helping the index move back to positive territory. «We may need to see a slide to levels around 17,800 points as the worst case scenario, but even that shouldn't be a serious fall in the current market conditions,» said Chuo Securities' head of stock trading Mamoru Maeda. Gainers included Toshiba Corp., Hitachi Ltd., and Mizuho Financial Group Inc. In Hong Kong, shares hit a third straight record high, boosted by gains in U.S. stocks overnight and expectations of strong second-quarter corporate earnings, with gains led by Chinese insurers and property companies. The blue chip Hang Seng Index rose 107.32 points, or 0.5 percent, to 23,472.88 after trading between 23,410.54 and 23,534.38 during the session. Investors' optimism about China's economy is driving up prices of Hong Kong-listed shares, said Y.K. Chan, a strategist at Phillip Asset Management (HK) Ltd. «Strong earnings forecasts have attracted a large amount of funds to Chinese insurers,» he said. China's buoyant stock market and the recent rise in the country's interest rates are expected to boost insurers' investment income. Investors also favor stocks of property companies that have exposure to China because they serve as a hedge against rising inflation in the mainland, Chan said. Ping An Insurance rose 4 percent to a record HK$65.70, after it said Tuesday its first-half net profit would more than double from a year earlier. The day's best-performing blue chip, Henderson Land Development Co., rose 5 percent to HK$57.85, after reports that the company plans to invest more than 4 billion yuan to develop two projects in eastern China. In currencies, the U.S. dollar was trading at 120.62 yen mid-Tuesday, down from 121.33 yen late Monday in New York. The euro inched up to US$1.3828 from US$1.3802. --MORE
