Nikkei rises on Koizumi reform pledge

Profit taking on tech issues weighed on Tokyo before Koizumi's speech gave the market a lift

HONG KONG, China -- Japan stocks rose Monday after Prime Minister Junichiro Koizumi repeated his pledge to take decisive action on structural reform.

Audio CNN's Dalton Tanonaka with the Asian midday market report. 762 KB/1 min 10 sec AIFF or WAV sound

Immediately after Koizumi's inaugural policy speech to parliament, the Nikkei 225 stock average rose above the 14,500 level -- a gain of 0.7 percent.

Elsewhere, Asian markets mostly were higher by midday Monday.

Earlier, the Tokyo market had lost ground as buyers backed away from high-technology issues.

Traders noted investors were taking profits following hefty rises in tech issues and a four-day weekend. Gains in some "old economy" stocks however, lent some support.

Toshiba Corp, Japan's largest chip maker, fell 3.22 percent to 812 yen, after the Philadelphia semiconductor index shed 1.17 percent on Friday.

That dampened the response of major technology issues to a 2.11 percent rise on the U.S. Nasdaq and pulled down the benchmark Nikkei average by 0.93 percent or 133.54 points to 14,288.10.

But gains in Yamato Kogyo and other "old economy" shares supported the broader market. The capital-weighted TOPIX index edged up 0.01 percent or 0.19 points to 1,424.

HK listing boosts shares

Hong Kong stocks opened higher on Monday, boosted by news of the inclusion of China Unicom and Hong Kong commuter railway MTR Corp in the Hang Seng Index from June 1.

The Hang Seng Index was up 0.8 percent to 13,497.87 in mid-morning trade.

Stocks of China Unicom, the mainland's second largest mobile carriers, soared 11.64 percent to HK$12.90. MTRC shares also surged 7.36 percent to HK$13.80.

Brokerage stocks lift Korean market

South Korean shares opened higher led by financial stocks, following a 2 percent rise in the U.S. Nasdaq on Friday.

The Korea Composite Stock Price Index was up 0.35 percent at 587.64, while the over-the-counter Kosdaq rose 1.90 percent to 82.01.

Brokerage shares moved up following local reports the industry will be reorganized in the second half of the year through foreign investment and mergers and acquisitions.

LG Securities was up 300 won at 8,500. Samsung Securities was up 500 won at 36,650 won.

In Australia, the ASX All Ordinaries Index was up 0.32 percent at 3,290.4 in morning trade.

In Taiwan, shares recouped early losses on Monday but will remain range bound on concerns over corporate April sales, analysts said.

The benchmark TAIEX index was up 0.95 percent at 5,293.89.

Reuters contributed to this report.

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