Jakarta share prices rose 1.4 percent after the International Monetary Fund (IMF) approved a further six billion dollars in a financial bailout for Indonesia, including an immediate disbursement of a billion dollars. The yen traded at 139.71-73 to the US dollar after hitting a high of 139.23 earlier in the afternoon on reports that former chief cabinet secretary S Eiroku Kajiyama would replace Ryutaro Hashimoto.

Japanese stocks climbed 0.7 per cent with the Nikkei stock average of 225 leading issues on the Tokyo StockExchange climbing 117.78 points to 16,731. 92. The broader Topix index of all first section issues rose 5.42 points to 1,280.73. "The market hopes for Kajiyama as Prime minister proved strong as share prices moved into a positive territory only on these reports," a broker with Kaisei Securities Company said. Obuchi has emerged as the clear frontrunner in the premiership race, but is not liked by the markets who doubt his grasp of economics. "But even if Obuchi becomes Prime minister, if he selects Kajiyama or (former prime minister Kiichi) Miyazawa as finance minister, the market will likely take it as a positive for the economic reform process." Hong Kong share prices rose 1.5 per cent on selective buying boosted by a stronger Japanese yen, dealers said. "The strengthening of the yen has helped the sentiment," with financial and property stocks making most gains, said Michael Ng, dealing director at Sassoon Securities. The key Hang Seng index gained 130.35 points to close at 8,586.57.