The Topix index of all issues on the first section of the Tokyo Stock Exchange was up 4.29 points at 1,478.43. Investors jumped into the market in the first hours of trading, encouraged by a rally on Wall Street.

``Earlier the Nikkei index rose thanks to a steady increase in Wall Street yesterday,'' said Tatsuo Kurokawa, senior market analyst at Nomura Securities Co Ltd. The Dow Jones Industrial Average closed up 0.6 per cent on Tuesday, with a 1 per cent jump in the technology-heavy Nasdaq.

But investors also moved to snap up shares newly included in the key Morgan Stanley Capital International indices.

That saw stocks like Softbank Corp, a key Internet investor, and Nintendo Co Ltd, a major home video game maker, surge. The MSCI indices track more than 45 equity markets throughout the world. Most international funds measure their performance against the indices.

The yen's surge to a six-month high against the dollar soon turned foreign investors against blue chip exporters. ``They bought high-tech, blue-chips issues in the morning but quickly sold them due to a strong yen,'' said Kazue Mayuzumi, senior market analyst at Nikko Securities. ``The strong yen drove them away as many investors took quick profits in high-tech issues,'' Mayuzumi said.

Hong Kong share prices also rose by 1.6 percent Wednesday after breaching the 13,000-mark again at one point, following overnight gains on Wall Street. ``The rally in the market was due to Wall Street's gains and easing of worries over (possible) US interest rate hikes,'' said Kitty Chan, fund manager at Dharmala Investment and Management.

The key Hang Seng index gained 209.94 points to close at 12,993.10 on turnover of $862 million.

The market opened strongly following overnight gains on Wall Street, gaining 277.86 points to close the morning session at 13,061.02. The Dow Jones Industrial Average was up 0.64 per cent Tuesday following publication of the consumer price index. This was in line with market forecasts and eased concerns that the Federal Reserve would aggressively tighten interest rates.

Percy Au-young, DBS sales director, said interest rate-sensitive stocks were the main beneficiaries of the stable interest rate trend.

South Korean share prices closed down 0.54 per cent Wednesday but reports from a meeting between the Daewoo Group and its foreign creditors prevented a steep fall, dealers said.

The Korea Stock Exchange index closed down 4.76 points at 868.94. Volume was $3.15 billion.

The market fell sharply in early trade but rebounded later on reports that foreign creditors agreed not to call in loans from Daewoo. Foreign banks refused to confirm the reports but it sparked brisk short-covering.

Goodmorning Securities' Lee Sang-Ho said the reported result of the creditors' meeting helped "put to an end mass retail sell downs seen today."

He said the index would maintain downside support at 840 points. Decliners outnumbered advancers 685 to 178, with 33 unchanged. The benchmark three-year state bond yield was up at 8.89 per cent and the three-year corporate bond yield up at 9.88. The won was at 1,205.00 against the dollar.

KEPCO closed up 1,050 won at 36,500, and Korea Telecom was up 500 won at 74,500. Samsung Electronics was unchanged at 184,000 and POSCO gained 1,500 won to 136,500. SK Telecom added 42,000 won to 1,222,000. Shinhan Bank rose 650 won to 13,700. Daewoo Group shares closed weaker, with Daewoo Telecom limit-down 545 won at 3,120.

Taiwan share prices closed 1.1 per cent lower to breach the support level of 8,000 points on profit-taking following gains of 11.8 per cent over the past four sessions, dealers said. The Taiwan Stock Exchange weighted price index fell 89.72 points to 7993.71. Philippine share prices rose 0.9 per cent on Wednesday due to bargain-hunting after a 4 per cent fall the previous day, analysts said. ``This is bargain-hunting, helped by the benign CPI (consumer price index) figures in the United States,'' said Jose Vistan of Wise Securities Philippines Inc. ``The rally we saw at the last-minute was bargain-hunting, technical buying,'' said Fitz Aclan of Orion-Squire Capital Inc.

The Philippine Stock Exchange composite index rose 17.96 points to close at 2,105.09. Volume fell to $61 million from $62 million. Philippine National Bank rose one peso to 134 pesos, while Metropolitan Bank and Trust Co rose 10 pesos to 322.50 pesos. Australian share prices closed up 1.3 per cent Wednesday as investors took heart from benign US consumer price data, brokers said.