STOCK MARKETS OF RESOURCE-RICH NATIONS SHINE IN 1ST HALF.

TOKYO, July 1 Asia Pulse - As share prices surged in resource-rich nations like South Africa during the first six months of 2008, stocks plunged in China, Vietnam and other countries lacking in such materials.

Japan was spared huge declines due to its long battle with deflation.

The MSCI All Country World Index, which shows global stock price trends, has tumbled 14% this year. Only South Africa, Canada, Russia and Brazil -- all of them flush with resources -- bucked the trend.

South Africa is the world's top producer of such rare metals as platinum, gold, manganese and chrome. Demand is surging for platinum, which is a catalyst for purifying exhaust gases, and manganese, which is used in dry cell batteries and in aluminum alloys, with related firms flourishing.

Canada has won the favor of investors with its bountiful reserves of oil, uranium, diamonds and other resources.

And Russian and Brazilian stock markets are being driven by resource-related firms. Russia's Gazprom and Brazil's Petroleo Brasileiro SA have elbowed into the top-10 firms in the world in terms of market capitalization, while Brazilian miner Vale and others are lifting their presence.

In contrast, emerging countries in Asia and elsewhere that import raw materials to make industrial goods for export have faced selling pressure. On top of the U.S. economy screeching to a halt, sky-high resource prices and rising food costs have fueled inflation, putting a damper on corporate profits and personal spending.