Australian stocks rally, Korea, HK mixed

In Australia, Qantas shares eased as analysts reviewed its alliance with discount rival Impulse Airlines

SYDNEY, Australia -- Australian stocks rallied almost half a percent by midday on Thursday, reflecting a return of strength for finance and media blue chips.

With Tokyo closed Thursday and Friday for the Golden Week holiday, the other Asian markets for investor focus were Korea and Hong Kong.

Audio CNN's Dalton Tanonaka with the Asian midday market report. 2.64M/2 min 2sec AIFF or WAV sound

Both were a little easier, with Seoul's Kospi index ending the morning session 1.19 points down at 582.51. Hong Kong's Hang Seng index was off 188 points at 13,686 just before the midday break.

In Australia, the benchmark S&P/ASX 200 index gained 15.6 points or 0.47 percent to 3346.2 by noon on volume of about $350 million.

Masking some pockets of weakness, News Corp shares rallied 37 cents or 2 percent to A$19.17 on reports a planned deal with General Motors for its satellite television provider DirecTV is closer to fruition.

News Corp also said it had become the largest shareholder in Gemstar-TV Guide International, with 17 percent, which analysts viewed as bolstering its bid for DirecTV.

BHP shares lose ground after Q3 result

Shares in mining giant BHP Ltd eased 6 cents to A$21.62, up from an opening low of A$21.50, despite its higher than expected third quarter net profit of A$27 million and expectations of favorable conditions for the fourth quarter.

Shares in banking bluechip Westpac rallied 15 cents or 1.2 percent to A$12.95 ahead of its first half result due on Friday.

Fallout continued from Qantas Airways' plan to form a long-term alliance with cut-price Impulse Airlines. Qantas shares lost three cents or 1.0 percent to A$3.12 as analysts began to view it as an overvalued stock.

In Hong Kong stocks were dragged lower at the opening by global banking giant HSBC Holdings' nearly three percent slide in London. HSBC lost 2.72 percent to HK$98.25 in early trade.

In Korea, tech stocks Samsung Electronics and SK Telecom were both slightly lower, as was Hyundai Motor. But second-ranked chip maker Hynix Semiconductor gained 55 won to 3440 won.

Reuters contributed to this report.

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