Japan closes up on bank reform gains

Tokyo rose on the strength of bank reforms said to be the centerpiece of an advisory panel's findings

By staff and wire reports

HONG KONG, China -- Asian stocks ended up Thursday. The prospect of bank reforms put a rocket under Japan, and cell-phone companies boosted Hong Kong.

But Australia closed narrowly down. Taiwan and South Korea also lost ground.

Tokyo stocks surged ahead of a reform outline expected to help Japanese banks dispose of bad loans.

The benchmark Nikkei closed up 2.3 percent at 12,962.43 after a brief foray above the 13,000 mark for the first time since June 12.

The broader Topix index rose 2.5 percent to 1,288.49.

Panel to present reforms

Prime Minister Junichiro Koizumi's advisory panel, the Council on Economic and Fiscal Policy, is unveiling a reform outline late Thursday. It is expected to suggest a state-backed body buy some of the massive amount of bad loans on banks' books.

Garry Evans, chief strategist at HSBC Securities, told CNN the plan could lead to a long-term rally in Japan's markets if banks write their bad debts off quickly.

But much has been said and little been done about reform in Japan. Experts say details are still likely to be thin ahead of elections in July. Mizuho, the world's largest banking group by assets, surged the daily limit of 50,000 yen, or 10.3 percent, to 535,000 yen. Its shares had been near a record low since it started trading in September.

UFJ Holdings jumped 14.8 percent to 705,000 yen. Sumitomo Mitsui Banking Corp. also gained by its daily limit of 100 or 11.0 percent to 1,013 yen.

Brokerage stocks also got a boost. The largest, Nomura Securities, soared 8.2 percent to 2,435 yen.

But nagging worries over tech earnings pushed down technology stocks.

Electronics giant Sony Corp. lost 0.6 percent to 8,610 yen. Speciality chipmaker Rohm Co. lost 1.0 percent to 18,790 yen.

Mitsubishi Motors Corp. lost 1.6 percent to 438 yen, a day after U.S. magazine Consumer Reports said its 2001 Mitsubishi Montero sport utility vehicle was at risk of rolling over in accidents.

Mining stocks off in Australia

In Sydney, the benchmark S&P/ASX 200 index was narrowly off, down 0.06 percent at 3,410.8 at the close.

It reached as high as 3,426.4 in the morning.

Key blue chips gave ground and mining and mineral stocks fell.

That's despite an 8.4 percent rise in miner WMC to A$9.98. It hit levels not seen since 1968, amid market speculation that South Africa's Anglo American PLC was readying a A$12 a share bid, possibly with Alcoa Inc.

Zinc producer Pasminco also gained, up seven cents to A$0.30 following a trading halt on Wednesday, after it said it could meet its commitments.

Market heavyweight News Corp. closed flat at A$17.90. Australian banks such as National Australia and Commonwealth backed away from Wednesday's record close.

Hong Kong gets mobile

In Hong Kong, the benchmark Hang Seng index rose 2.1 percent to 13,187.45. It rallied strongly in the afternoon.

China Mobile, the Hang Seng's second-biggest stock and China's No. 1 mobile-phone carrier, rose 4.3 percent to HK$41. Investors said its recent losses had been overdone.

Its rival China Unicom rose 3.2 percent to HK$13. It announced Thursday it added more than 1 million customers from April 20 to May 20.

In Taiwan, the Taiex closed off 0.9 percent at 4,984.88. It has fallen 3.4 percent over four days.

Investors are fretting about chip sales, which drive Taipei's market.

World microchip foundry leader Taiwan Semiconductor Manufacturing Co. lost 4.4 percent to T$86.

In South Korea, the Kospi lost 0.03 percent to 595.53. Techs took the wind out of Seoul's stocks, too.

Samsung Electronics, the world's biggest memory chip maker, lost 2,000 won to 198,000 ahead of rival Micron Technology's earnings later Thursday.

In Singapore, the Straits Times index was up 0.4 percent at 1,690.67 in late trade.

Reuters contributed to this report.