Banking shares shrugged off a US$7 billion (S$10.2 billion) rogue trader scandal at French bank Societe Generale and energy stocks also jumped as oil prices recovered on ebbing recession fears.

Japanese government bond futures slid a half-point, taking a hit from a third straight day of gains in the Nikkei while gold climbed to near an all-time high and platinum hit another record.

Global stock markets tumbled earlier this week as fears mounted that the world's top economy was heading towards recession, before recovering on hopes US policy makers were acting to blunt the worst effects of a slowdown.

'The economic stimulus plan, combined with steep US rates cut and expectations for further cuts this month, is helping put out an imminent fire,' said Mr Park Seung-hun, an analyst at Woori Investment & Securities said in Seoul.

President George W Bush and congressional leaders agreed on Thursday on a US$150 billion package of tax rebates and business incentives meant to ward off a recession in the world's largest economy.

Although the idea did little to revive Wall Street on Friday when it was touted last week, the fact that an swift agreement was met gave investors confidence, as did weekly US jobless claims, which fell to a four-month low.

SINGAPORE
Singapore share prices traded 2.66 per cent higher at the mid-day break on Friday as investor jitters eased after a tentative deal for a US economic stimulus plan, dealers said.

At the close of the morning session, the blue chip Straits Times Index was 81.21 points higher at 3,131.30, continuing a rebound from major losses during the first two days of the week when stock markets worldwide crumbled on US recession fears.

'This probably isn't the bottom of the pond yet, as volatility and sentiment will continue to dictate the market in the next few months,' Mr Terence Wong, an analyst with DMG & Partners Securities, said before the market opened.

He said blue chips have become bruised 'blue-black' chips.

'Should confidence return to the market, these stocks will be the frontrunners leading the charge,' said Mr Wong.

KUALA LUMPUR
Malaysian shares closed 1.6 per cent higher on Friday amid a rally in Asia, dealers said.

The Kuala Lumpur Composite Index (KLCI) closed up 22.05 points at 1,405.4, off a high of 1,411.09. The bourse was closed on Wednesday for a Hindu festival.

HONG KONG
Hong Kong share prices closed sharply higher Friday, up 6.7 per cent, as investors chased bargains in a market battered recently by US recession fears, dealers said.

The Hang Seng index closed up 1,583.10 points at 25,122.37, going above 25,000 points for the first time this week.

SHANGHAI
Chinese share prices closed 0.93 per cent higher on Friday, with property developers gaining ground on the continued strengthening of the local currency, dealers said.

They said shares fell as subscriptions for the initial public offering of China Coal Energy diverted funds, but buying interest in yuan-denominated assets such as real estate helped the market to a positive finish.

The benchmark Shanghai Composite Index, which covers both A and B shares, closed up 43.95 points to 4,761.69 on turnover of 129.42 billion yuan (S$25.2 billion).

TOKYO
Japanese stocks surged more than 4 per cent on Friday to their biggest one-day gain since March 2002, as relief over a US tax plan and a possible rescue of US bond insurers set off a wave of short covering.

Japan's No 2 bank, Mizuho Financial Holdings jumped nearly 11 per cent, its largest one-day gain since Sept 2003, with other banks also doing well. Exporters gained on a weaker yen.

The benchmark Nikkei closed up 4.1 per cent, its biggest one-day gain since March 4, 2002, ending at 13,629.16 for gains of more than 500 points.

The broader Topix finished up 4.7 per cent, also its greatest one-day gain since March 4, 2002, with gains of 60.32 points taking it to 1,344.77. -- AFP, REUTERS