A stronger performance overnight on Wall Street, whose Dow Jones index closed up 0.6 per cent, and hopes that a Japanese stimulus spending package would work also aided regional gains, dealers said. Singapore surged 3.5 percent and Hong Kong rose 1 per cent on rate-cut expectations following Tuesday's quarter-point easing announced by the US Federal Reserve.

Seoul leapt 4.1 per cent, Bangkok gained 3.9 per cent, Jakarta advanced 2.3 per cent and Taipei moved up 2.8 per cent. Sydney and Kuala Lumpur ended barely higher.

Tokyo was the major exception to the regional uptrend, falling 1.7 per cent on fading hopes of a cut in the consumption tax, while Manila ended barely lower.

In Singapore, share prices benefitted from renewed buying by institutional investors amid hopes for further interest ratecuts. The stock market was very bullish over prospects of further interest rate cuts and hopes that a stimulus package could help revive the Japanese economy, a dealer with a European brokerage said. "Personally I think the buying the last two days is overdone. The run-up has been led largely by banking and property stocks. We may see some rotational interest towards the weekend," he said.

The Straits Times Index rose 44.85 points to 1,316.55, while the broader All-Singapore index rose 9.82 points to 364.19.

Tokyo: Japanese stocks fell 1.7 per cent as investors were disappointed by fading prospects of a cut in the consumption tax, brokers said. Investors mostly stayed on the sidelines before US president Bill Clinton arrived at mid-afternoon on a two-day visit, brokers said. Then they shifted their attention to prime minister Keizo Obuchi's meeting with opposition leader Ichiro Ozawa on the possibility of forming an alliance.

The Nikkei average of 225 leading issues fell 244.77 points to finishat 14,354.46, wiping off a 1.3-per cent 186.23-point gain in the previous session. The Topix index of all issues on the first section of the Tokyo Stock Exchange was down 9.42 points at 1,104.00.

Hong Kong: Hong Kong share prices rose 1 per cent on hopes that local interest rates would ease, but gains were limited with the market already having factored in a rate cut, dealers said. "Basically, the market has discounted for sometime the local interest rate cut," which explained the subdued buying, said Sean Li, associate director at Amsteel Securities. "The (hopes of an) interest rate cut are not too effective any more to push the index higher," he said. The key Hang Seng index gained 99.88 points to close at 10,313.30 -- its highest since May 6 when the index stood at 10,109.14, after gaining 64.73 points in the previous day's trade.

Kuala Lumpur: Malaysian share prices closed barely higher in a minor technical rebound amid an absence of clear leads to spur full-fledged buying. "It is just aminor rebound after yesterday's dip but trading was dull in the absence of fresh leads," a dealer with a local brokerage said. The benchmark Kuala Lumpur Stock Exchange's composite index rose 0.24 points to finish at 458.58, while the lesser second board index gained 0.03 points at 129.53.

Bangkok: Thai shares added 3.9 per cent at the close as gains on regional markets fuelled buying in the afternoon session, analysts said. Analysts said the market was led by heavy buying in banking and finance issues, particularly Thai Military Bank Plc, which soared almost 29 per cent on the day. An analyst with National Finance and Securities said foreign investor buying in banks and blue chips prompted local retailers to follow suit, triggering a rally which spilled over to the broad market. The Stock Exchange of Thailand (SET) composite index rose 13.43 points to 358.56 points, while the select SET 50 was up 1.06 points at 26.25.

Jakarta: Indonesian share prices closed 2.3 per cent up on speculativebuying by locals with telecommunications stocks leading the rally, dealers said. A dealer with a local brokerage said Indosat and Telkom were higher on continued domestic interest following the government's announcement this week of an increase in tariffs on international calls. "The gains were caused by Telkom and Indosat ... the reason for which is that the tariff is to be increased," the dealer said. The composite index was up 9.125 points at 379.119.

Manila: Philippine share prices ended barely lower as mild profit-taking set in following a series of recent gains. "Profit-taking seems warranted" following the upturn on Wednesday caused by the US interest rate cut, said Spencer Yap of BPI Securities Corp. The Philippine Stock Exchange composite index fell 1.76 points, or 0.1 per cent, to close at 1,819.01 points.

Seoul: South Korean share prices leapt 4.1 per cent, recovering from a slight fall a day earlier as retail investors stepped up buying in afternoon trade, dealers said. The KoreaStock Exchange composite index closed up 17.32 points at 441.06, off an early low of 422.00.