UPDATE:Asian Shares Higher; Taiwan Shrs Gain On New Cabinet

SINGAPORE -- Asian markets were mostly higher in choppy trade on Tuesday. Stocks in Taiwan received a boost from the Cabinet's en-mass resignation on Monday, amid mounting criticism of their failure to properly handle the aftermath of typhoon Morakot.

Sentiment in the Taipei market was lifted after Taiwan President Ma Ying-jeou appointed Wu Den-yih as his new premier and Taoyuan County Magistrate Eric Chu as the new vice premier.

The two are "are far more competent," said Citigroup's Head of Taiwan Strategy Peter Kurz. "Wu Den-yih is a well-respected (ruling party) Kuomintang leader with roots in the south," the KMT's weak spot, thanks to his stint as former Kaohsiung mayor, said Kurz. This was in contrast with outgoing Premier Liu Chao-shiuan, who was said to have poor political skills.

"On balance, this is positive for the market...and should make for a much more effective government," said Kurz. Taiwan's headline stock index was up 1.2%.

With Wall Street closed on Monday, trade in other Asian markets was relatively quiet. Japan's Nikkei 225 was up 0.2% and South Korea's Kospi rose 0.5% while Australia's S&P/ASX 200 was 1.3% higher. New Zealand's NZX-50 was up 0.2%. Industrial Average futures were up 40 points in screen trade.

Gains for China shares were limited by worries over a supply glut from the new share offerings in the pipeline. "Fundraising activities by big names increased liquidity concerns, while profit-taking also hit the market after consecutive gains in recent sessions," said Simon Wang at Guoyuan Securities. The Shanghai Composite Index was 0.2% higher.

Hong Kong's Hang Seng Index was 0.6% higher and Singapore's Straits Times Index slipped 0.1% while Malaysia's Kuala Lumpur Composite Index rose 0.6%. Indonesian shares were up 0.3% and Thailand's headline stock index was up 0.5%. In the Philippines, shares were 0.8% higher, as investors played catchup after returning from Monday's break.

Trade in the Tokyo market was thin and expected to stay that way for the rest of the week as investors awaited the appointment of new Cabinet members following the Democratic Party of Japan's Lower House election victory in August.

"Investors are reluctant to take large positions before such an important event," said Yukio Takahashi, market analyst at Mizuho Securities.

JVC Kenwood surged 22.5% after the Nikkei reported that the company expected to post group operating profit of up to Y1 billion for the July-September quarter, compared with its forecast for Y500 million.

Solar battery maker Showa Shell was up 2.6% after it said late Monday that it planned to set up its third solar cell factory in Japan as well as incoming Japan prime minister Yukio Hatoyama's comment Monday that Japan would seek to cut global warming gas emissions 25% from 1990 levels, by 2020.

Taiwan building and construction stocks rose on news that Eric Chu had been appointed as the new vice-premier. Chu was noted as the force behind the Taoyuan Airport City plan, to upgrade the airport and create a tax-free zone to attract more investments from China. "Investors anticipate the Taoyuan Air City plan will bring about closer Taiwan-China ties and boost the real estate" sector, said Franklin Templeton First Taiwan Securities Investment Trust fund manager Yen Shen. Goldsun Development rose 6.9% while Chong Hong Construction was up 6.9%.

Property stocks in Hong Kong were hit by profit-taking with Cheung Kong (Holdings) down 0.5% and China Overseas Land down 1.6%.

Korean technology stocks were leading the market higher with Samsung SDI was up 3.2% and Samsung Eletro-Mechanics up 2.5% on stronger demand for lithium ion batteries for hybrid vehicles.

Australian resource stocks were higher on European leads with BHP Billiton up 1.3% and Rio Tinto 1.4% higher. Bank shares such as NAB was up 2.9% and QBE rose 1.5%.

Gold stocks were higher after the benchmark December U.S. Comex gold futures touched $1,000 per troy ounce for first time since February. Newcrest Mining was up 3.9%, Lihir Gold was up 3.3% and Sino Gold gained 1.1%. The spot gold price was being closely watched by investors and was still below the pivotal psychological $1,000 level, last at $996.65 per ounce, up $2.80.

The major currencies were expected to consolidate within recent ranges as players sat on the sidelines, awaiting new cues from economic data, such as China's August consumer price index due later in the week. "The market lacks momentum now with liquidity still low," following the U.S. market closure on Monday, said Osao Iizuka, head of foreign exchange trading at Sumitomo Trust & Banking.

The U.S. dollar was at Y92.79 from Y92.97 in late European trade while the euro was at Y133.03 from Y133.54 and at $1.43335 from $1.4339.

Japanese government bond futures rose with the lead September contract up 0.15 point at 138.84. The 10-year cash bond yield was down one basis point at 1.345% while the 5-yield was flat at 0.625%.

There was little activity in base metals as the U.S. markets were shut for a holiday on Monday. LME three-month copper was now at $6,325 per ton, up $2 from the London kerb, while aluminum was at $1,862 per ton down $3. LME nickel was at $17,700 per ton, up $5.

Nymex crude oil futures for October were last at $68.24 per barrel, down 22 cents on Globex.