Tokyo leads region to five-month high

Japan's new Prime Minister Junichiro Koizumi delivers his first policy speech to Parliament

HONG KONG, China -- Markets throughout the region ended higher on Monday, buoyed by encouraging economic data. Tokyo led the way to end on a five-month high.

Audio CNN's Dalton Tanonaka on the Asian stock market close. 1.27MB/1 min AIFF or WAV sound

In Tokyo, investors grew more confident that structural reform would finally be carried out under Prime Minister Junichiro Koizumi's leadership.

The benchmark Nikkei average ended up 0.75 percent at 14,529.41. It was the first time the Nikkei had finished above the 14,500 mark since December.

Foreign investors were the major driving force behind Monday's gain. They focused on Sony and other blue-chip technology shares, including specialty chipmaker Rohm Co Ltd, due to their high liquidity and growth potential.

Investors also snapped up shares in NTT DoCoMo Inc which shot up 7.43 percent to 2.89 million yen. That pushed the TOPIX index 1.17 percent higher to 1,440.97, its highest close since November last year.

Investors bet on Koizumi

Analysts said that Koizumi's talk of restructuring and reform would likely sustain the market's uptrend for the time being.

In his inaugural speech to parliament on Monday, Koizumi said he faced a daunting task in revitalizing Japan's lagging economy, but that he intends to depart from the conventional pump-priming approach.

U.S. Federal Reserve rate cut

Hong Kong shares closed higher supported by gains in global banking giant HSBC Holdings and property counters, on the back of renewed expectations for a further rate cut by the U.S. Federal Reserve on May 15.

The benchmark Hang Seng Index closed up 1.57 percent at 13,600.78.

Shares of China's second largest cellular carrier, China Unicom, climbed 8.62 percent higher at HK$12.60. Hong Kong's commuter railway operator MTR Corp's stock added 5.43 percent to HK$13.60.

Economy eyed

In Sydney, the Australian share market crept higher as investors continued to punt on a global and domestic economic recovery later this year.

The S&P/ASX 200 index finished up 0.4 percent at 3,354.8. Fresh domestic data also confirmed the market's view that the Reserve Bank of Australia would likely cut interest rates again in June.

Among stocks, Anglo-Australian miner Rio Tinto rallied 1.6 percent to A$37.30 (US$19.40), while miner and energy group BHP climbed 0.7 percent to A$21.64.

Industry reorganization

In Korea, the benchmark stock index closed higher on Monday, driven by brokerage shares, which rose sharply on hopes that the industry would be reorganized through mergers and acquisitions in the second half of the year.

The Korea Composite Stock Price Index finished up 1.86 percent at 596.50. The over-the-counter Kosdaq edged up 2.93 percent at 82.84.

Reuters contributed to this report.

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