Gold also hit a record above $945 an ounce, and silver touched a 27-year high, as funds poured into a wide range of commodities, betting they will outperform in an environment where growth is slowing and prices are rising.

Data on Wednesday showed a faster-than-expected rise in US consumer prices last month and further weakness in the housing market there.

'The US is entirely focused on the economic data that is coming out and we're getting revised forecasts for their economic growth in the downward trend,' said Savanth Sebastian, equities economist at CommSec in Sydney.

'(The Federal Reserve) will have to cut rates and the possibility of that is boosting sentiment.'

The weak housing market and problems in the credit market prompted the Fed to lower its 2008 US economic growth forecasts on Wednesday, with analysts interpreting comments as paving the way for further reductions in borrowing costs.

TOKYO
Japanese share prices staged a strong rally on Thursday, closing 2.84 per cent higher as investors went bargain hunting in the wake of overnight gains on Wall Street, dealers said

They said the rebound came despite continued concerns about high oil prices, which hit fresh all-time highs above 101 dollars a barrel.

The Tokyo Stock Exchange's benchmark Nikkei index rose 377.91 points to end at 13,688.28.

The broader Topix index of all first-section shares climbed 32.00 points or 2.46 per cent to 1,334.72.

KUALA LUMPUR
Share prices on Bursa Malaysia closed mostly lower on Thursday on concerns over higher inflation with crude oil prices going above US$100 per barrel again, dealers said.

The benchmark Kuala Lumpur Composite Index (KLCI) lost 19.56 points to 1,394.76 after opening 0.78 of a point higher at 1,415.10 this morning.

Throughout the day, it moved between 1,388.81 and 1,415.11.

The Industrial Index lost 37.41 points to 2,964.85, the Finance Index shed 141.81 points to 10,568.3 and the Plantation Index fell 140.84 points to 8,279.49.

In addressing this, the Malaysian government on Thursday assured that it will continue to find ways to cushion the impact of high crude oil prices on the domestic economy.

The FBMEmas dropped 141.17 points to 9,419.09, FBM30 declined 143.99 points to 9,237.82, FBM2BRD was 109.11 points lower at 6,359.28 and FBMMesdaq went down 117.14 points to 5,503.20.

Decliners outpaced advancers 588 to 176 while 257 counters were unchanged, 397 untraded and 24 suspended.

Total volume decreased to 770.6 million shares valued at RM1.958 billion from 849.973 million shares valued at RM2.074 billion posted on Wednesday.

SHANGHAI
Chinese share prices fell 1.23 per cent in Thursday morning trade amid anxiety over surging oil prices and tighter liquidity after a Shanghai bank announced a new share sale, dealers said.

Petroleum and bank stocks led the decline as oil hit a new record of 101.32 dollars in Singapore trade and a plan by Pudong Development Bank to issue new shares worth up to 5.6 billion dollars unsettled investors, they said.

The benchmark Shanghai Composite Index, which covers both A and B shares, ended the morning session down 56.01 points to 4,511.02.

'Investors are becoming pessimistic as share prices go down and large refinancing activities will be unlikely to receive a favourable response from the market,' said Yan Li, an analyst from South-west Securities.

The Shanghai A-share Index fell 58.90 points or 1.23 per cent to 4,733.47 while the Shenzhen A-share Index was down 0.72 or 0.05 per cent at 1,490.46.

HONG KONG
Hong Kong share prices closed firmer on Thursday, off their highs as gains were capped by fears higher inflation in the US may keep the Federal Reserve from making aggressive rate cuts, dealers said.

The Hang Seng index closed up 32.42 points or 0.14 per cent at 23,623.0, off a low of 23,500.95 and a high of 24,003.6. Turnover was HK$75.43 billion (S$13.7 billion).

Interest in select blue chips, including China Mobile and HSBC, enabled the market to end in positive territory after some weakness before close of trade.

Dealers said gains were capped by worries that the US Federal Reserve may not have much leeway to cut interest rates aggressively at its meeting next month in the face of rising inflation amid stagnant economic growth.

Gold miners and other commodity producers, however, outperformed on the back of record high prices of gold, crude oil and other commodities.

Among gold stocks, Zijin Mining gained US$0.28 to 10.20, Zhaojin Mining rose 0.70 to 34.60 and Lingbao Gold was up 0.07 at 4.74.

Metals also posted sharp gains, with Angang Steel surging US$0.56 to 18.74 and Jiangxi Copper gaining 1.08 at 18.26. -- AFP, BERNAMA, REUTERS