Asian markets up on renewed confidence

Investors in Japan are pinning their hope on Koizumi's new cabinet

HONG KONG, China -- Asian markets were mostly higher by midday Thursday, lifted by the rebound in the U.S. and renewed investor confidence.

Tokyo stocks ended the morning session stronger, lifted by hopes a new cabinet will provide prime mister-in-waiting Junichiro Koizumi with the line-up he needs to enact necessary reforms.

AUDIO CNN's Lisa Barron with the Asian midday market report. 1.70 MB /2:42mins AIFF or WAV sound

The benchmark Nikkei average ticked up 195.61 points or 1.41 percent to 14,023.11. The broader TOPIX index firmed 19.60 points or 1.47 percent to 1,361.10.

Banks and securities led a broad-based advance, with traders drawing optimism from media reports that Hakuo Yanagisawa, the highly regarded head of Japan's financial watchdog, will likely stay in the cabinet to be announced later in the day.

Mizuho Holdings, the world's largest banking group, jumped 6.35 percent to 720,000 yen, helping to lift both major indices.

China plays outperform

In Hong Kong, stocks opened slightly higher on Thursday following a rebound in U.S. stocks, with China-related plays outperforming the broader market as investors focused on the country's rapid growth potential.

The Hang Seng Index was up 0.5 percent at 13,262.55 just before midday. Leading gains were shares of China's biggest computer maker Legend Holdings, which rose 3.28 percent to HK$6.30.

Telecom shares mixed

In Seoul, stocks opened slightly higher, though trade was trapped in a tight range, after U.S. wireless technology company Qualcomm Inc warned of a lower-than-expected third quarter results.

The Korea Composite Stock Price Index was up 0.12 percent at 567.04. The over-the-counter Kosdaq rose 1.46 percent to 78.09.

LG Electronics slipped 1.8 percent to 13,600 won following a media report that it had lost out to rival Samsung Electronics for a stake in China's planned CDMA (code division multiple access) mobile phone network.

Samsung Electronics was unchanged at 226,000 won; domestic mobile carrier SK Telecom climbed 0.2 percent to 222,500 won.

In Taiwan, however, stocks were cautious in early trade as worries over first-quarter profits and the slowing of the domestic economy weighed on the market. The benchmark TAIEX was off 0.04 percent at 5,513.83.

In Australia, the benchmark S&P/ASX200 was up slightly at midday at 3305.6, a gain of 4.3 points. ANZ Bank was stronger on a record first-half profit.

Reuters contributed to this report.

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