Asian markets begin on upbeat note

January 4, 2010, 4:41pm

HONG KONG, Jan. 4 (AFP) – Asian markets began the new decade in broadly upbeat fashion Monday with dealers in Tokyo lifted by news of extended credit to Japan Airlines and a strong yen as well as positive Chinese manufacturing data.

And the new year saw the introduction of a new trading system in Tokyo as the stock exchange tries to keep ahead of its regional rivals following a series of technical problems in recent years.

Tokyo ended the day 1.03 percent higher at 10,654.79, a 15-month high, and Sydney added 0.12 percent to 4,876.3.

''The mood on the first day of trading this year is good,'' Kenji Shiomura, market analyst at Daiwa Securities, told Dow Jones Newswires.

Japan Airlines (JAL) shares soared more than 30 percent after the government on Sunday agreed to double a state-funded loan to the cash-strapped carrier to 200 billion yen (2.2 billion dollars).

JAL shares had plunged 23.9 percent on the last trading day of 2009, sinking at one stage to a record low, on fears Asia's largest airline might file for bankruptcy protection.

Exporters were also helped by the dollar's stronger position against the yen.

The dollar eased to 92.79 yen in Tokyo Monday afternoon trade, down from 93.00 in New York late Thursday, and the euro fell to 1.4299 dollars from 1.4323 dollars, and to 132.58 yen from 133.26.

The dollar softened against the yen but its overall tone remained firm thanks to optimism about prospects for the US economy, dealers said.

But Hong Kong was 0.29 percent lower by the break, while Shanghai was 0.38 percent off due to inflationary fears.

Manila closed down 1.56 percent at 3,005.01. News that China's Purchasing Managers' Index rose to 56.6 percent in December from 55.2 in November lifted the market early on but was unable to help sustain the gains.