LONDON (Dow Jones) - Led by Japan's Nikkei 225, which hit a four-year high, Asian markets generally finished higher Thursday, with South Korea's Kospi hitting a record high yet again in choppy trade.

Fueled by upbeat retail sales data and optimism about forthcoming economic reports, the Nikkei added 181.33 points, or 1.4%, to finish at 13,617.24. The broader Topix index rose 1.9% to 1,428.13.

Government data released before the start of trading showed retail sales rose 1.5% in August from July, beating the consensus forecast and reinforcing optimism that domestic consumption would continue to support Japan's economic recovery.

Investors are optimistic about industrial-output figures, due out Friday, and the quarterly tankan business survey to be released Monday.

Honda Motor Co. Ltd. (HMC) was among the biggest gainers, adding 6.9% after Moody's Investors Service raised its rating outlook to positive from stable, citing its competitive position in the global auto industry. Toyota Motor Corp. (TM) also gained, up 3.7%.

Still in Japan, August orders for chip-making fell 10%, data from the Semiconductor Equipment Association of Japan (SEAJ) showed. The slide, however, was much smaller than a 23.2% fall in July

Australia's All Ordinaries index continued its recent climb, adding 0.9% to 4, 617.400, as miners BHP Billiton Ltd. (BHP) and Rio Rinto Ltd. rallied on record copper prices. Energy stock Santos Ltd. rose after the discovery of a new gas field.

In Seoul, South Korea's Kospi rose to a record high of 1,231.22, even as a government report showed that August industrial output fell 1.6% from July, its first drop in four months.

Around the region, Hong Kong's Hang Seng rose 1.2 % to 15,408.58 as buyers rushed to complete some deals ahead of a long holiday week in China ; the Singapore Straits Times index lost 0.4% to 2,298.91; and Taipei's Weighted index gained 1.3 % to 6,009.99.

In China, the Shanghai Composite index closed up 2.1% at 1,155.485 after Beijing unveiled on Thursday the creation of its long-awaited stock rescue fund, which will focus on compensating investors and helping brokerages that run into problems.

U.S. stocks closed mixed Wednesday, with the Dow Jones Industrial Average gaining for a third straight session, as investors shrugged off new highs for natural gas to seek out attractively priced stocks.

The Dow industrials (:, , ) closed up 16.88 points at 10,473.09. The S & P 500 Index (: , , ) ended up 1.23 points at 1,216.89, marking its fifth straight rise, although some gains have been fractional. The Nasdaq Composite Index (: , , ) closed 1.02 points lower at 2,115.40

(END) Dow Jones Newswires

09-29-05 0539ET Copyright (c) 2005 Dow Jones & Company, Inc. Copyright (C) 2005 Dow Jones & Company, Inc. All Rights Reserved.