Asian markets close higher

Asia-Pacific stock markets ended higher yesterday, cheered by a strong rebound on Wall Street that briefly took investors' attention off regional economic miseries.

Malaysia, meanwhile, quickly moved to peg the ringgit currency at a fixed exchange rate to the dollar after announcing drastic controls to take the unit out of international circulation.

The peg was greeted by a 12-per cent rise on the Malaysian stock market, which recouped most of its 13.3 per cent loss the previous day.

But uncertainty intensified after the Malaysian Prime Minister, Mr Mahathir Mohamad, sacked his deputy, Mr Anwar Ibrahim, just hours after the imposition of the fixed exchange rate regime that trampled on Mr Anwar Ibrahim's free market views.

The dramatic move brought tensions between the two leaders to a head and underscored divisions over economic policy and the nation's political future, government officials and market analysts said.

Boosted by that strong performance on Wall Street on Tuesday, Hong Kong shares gained 4.2 per cent, Sydney rose 2.3 per cent, and Singapore and Manila advanced 0.5 per cent each.

Taipei rose 2.2 per cent, Auckland ended 2.4 per cent higher, Seoul gained 1.5 per cent and Jakarta moved up 1.2 per cent.

But Tokyo finished barely higher, as late selling wiped out most of its early gains.