Asian Markets Rally Again; Tokyo Index Nears ’99 High

Asian shares shrugged off concerns over a possible U.S. interest rate hike and marched higher on Monday, even before U.S. markets surged.

Tokyo shares gained 0.8%, lifting the Nikkei-225 index to 18,233 and nearing the 1999 high of 18,532 set July 19.

South Korea’s main share index shot up 4.5% and Thailand’s index added more than 1.5%. Singapore gained 1.8%.

Hong Kong, however, was little changed, with the Hang Seng at 13,573 after a trading day shortened by a storm warning during the morning.

Asian markets have in recent sessions resumed the rally that had made them among the world’s hottest markets in the first half of the year.

In Japan, sentiment has been boosted by hopes that troubled banks there may build alliances to solve their bad-loan problems.

Last week, Dai-Ichi Kangyo Bank, Fuji Bank and Industrial Bank of Japan said they would form a joint holding company next year and integrate their business operations by the spring of 2002.

“The upbeat sentiment has floated over from the banking sector into other financial sectors, such as insurance,” said Katsuhiko Kodama, head of the equities section at Toyo Securities.

In South Korea, stocks were buoyed by news that Moody’s Investors Service was reviewing the country’s foreign currency credit ratings for possible upgrade and by reports of government steps to bring market stability.

The South Korean market is up 66% this year.

In Australia, the All Ordinaries index closed 1.3% higher at 3,064.2.

The 33-share main index in the Philippines ended 0.5% higher at 2,220.8.

But Taiwan’s main index slipped 0.4% to end at 8,120.0 amid growing profit-taking pressure after recent rallies. The market is up 24% year to date.