THE market shed its post-election blues yesterday to end sharply higher on Prime Minister Paul Keating's statement on Monday that there was scope for a cut in official interest rates. Shares rose quickly at the open and climbed steadily to wipe out most of Monday's 34.5-point loss sparked by Labor's surprise win in Saturday's federal election. ''It's very strong all over,'' said Mr Bill Chatterton of Morgan Stockbroking. ''To some extent it is being driven up on talk of an interest rate cut.'' The All Ordinaries Index closed up 32.9 points at 1,659.3. WELLINGTON BUOYED by a strong performance in Australia, shares recouped most of Monday's loss to end sharply higher. Telecom was particularly strong on high volume of 34 million shares. Its shares had been progressively bid up now that the Bell Atlantic placement is out of the way. The rest of the leaders were mixed. TOKYO STOCKS ended lower on consolidation after seven consecutive days of gains. Brokers said underlying sentiment was still bullish but that investment trust selling and profit-taking helped wipe out early gains. ''Brokerage dealers and foreigners who had fuelled the long bull run were catching their breath and public pension funds were also keeping a low profile,'' said Mr Tadayasu Hasegawa, analyst at Kokusai Securities. The 225-share Nikkei Average was down 117.88 points or 0.65 per cent at 17,968.3, with an estimated 350 million shares traded. MANILA PRICES finished up but the recovery was weakened when foreign funds which have underpinned the market shifted attentionto the rebound of the Hang Seng Index in Hongkong. The absence of fresh news also kept investors sidelined with profit-taking expected to continue in coming days. ''A good number of funds were tied up in Hongkong. They're not really focused on the Philippines,'' Mr Louie Bate of Baring Securities said. The Manila Stock Exchange Composite Index rose 4.13 points to end at 1,475.78. TAIPEI STOCKS ended mixed after a wave of late profit-taking in the heavily weighted financial sector. The Weighted Index rose more than 90 points by mid-morning, but closed 17.01 points down at 4,489.99. Turnover rose to an active NT$56.67 billion from Monday's $44.88 billion. Many industrial sectors attracted strong buying support, especially textiles. ''Banking shares are still shaky and there is still room for more losses,'' said Mr Joe Chiou of Yuan Ta Securities. Brokers said the performance of financials would continue to dampen the market in the near term, but industrial sectors could continue posting moderate gains in turn as players were still looking for bargains in anticipation of another market rally in the medium term. SEOUL STOCKS closed lower for the first time in four days as investors worried about tension between South and North Korea caused by Pyongyang's abrupt withdrawal from an international nuclear pact. ''There is no news in the market now, just worries over the rise in tension between South and North Korea,'' said Mr Ko Kyung-bae at Hyundai Securities. He said the news of North Korea's decision to pull out of the Nuclear Non-proliferation Treaty laid a further pall over an already-depressed market. The index fell 7.86 points to close at 637.87. SINGAPORE PRICES ended higher following the government's announcement of changes in the Central Provident Fund's (CPF) investment rules. ''The market's sentiment was underpinned by the changes but the local market is still caught in a consolidation phase,'' a trader at Vickers Ballas Singapore said. The 30-share Straits Times Industrial Index rose 18.54 points to 1,649.35, regaining most of Monday's losses. The government announced on Monday that it would allow CPF members to withdraw more funds to invest in stocks, unit trusts and gold. BANGKOK THE SET Index dropped 0.39 points to close at 905.12 as domestic political uncertainty kept investors on the sidelines. Trading was dull with 45.29 million shares worth 2.5 billion baht changing hands. KUALA LUMPUR PRICES closed higher on renewed speculative buying of situational and lower-priced stocks. The KLSE Composite Index closed up 2.98 points at 637.79. Brokers said sentiment was aided by a strong rebound in Hongkong stocks, adding that core issues also saw a general recovery after Monday's sell-off. But analysts said the market was in an over-bought position and a downward correction was imminent in the near term. JAKARTA THE market closed mixed in moderate trading with fairly strong selling from foreign investors. ''Trading was less active than last week. There was fairly strong selling pressure, with several foreign investors giving up their shares,'' one broker said. The Jardine Fleming Index slipped to 63.27 from Monday's 63.41. The Chinese share prices are provided by Telerate. All other prices are provided by Reuter.