Asian stocks end Friday on slight gains

By staff and wire reports

HONG KONG, China -- Asian stocks rose almost across the board Friday, but gains were slight.

Taiwan's troubled stocks climbed off their seven-year low. Hong Kong also closed up.

But Australia, the region's second-biggest market, gave up ground. South Korea also closed down.

Asia's biggest market, Japan, was closed for the Marine Day holiday.

Australia down for the week

In Sydney, the benchmark S&P/ASX 200 finished down 0.3 percent at 3,384.2. It was 12.3 points lower on the week.

Coles Myer fell almost 7 percent to A$5.98. Investors made a quick exit after the retail giant issued its third profit warning in six months.

Its poor performance is a stark contrast to supermarket chain Woolworths, a favorite defensive stock.

Woolworths rose 23 cents to A$11.30, and struck a record high of A$11.41 during the day. People need to buy food, investors figure, even during an economic slump.

Newspaper publisher John Fairfax plunged 7 percent to A$3.88 after media baron Kerry Packer sold his 14.9 percent stake at A$4.00 a share.

Packer-controlled CPH Investment, which sold the stake, rose 5.5 cents to 46 cents.

Mining stock Pasminco rose seven cents to 21.5 cents on massive turnover . The debt-laden company said it would sell its mining assets and focus on smelting.

In New Zealand, the benchmark NZSE-40 Capital Index rose 0.4 percent to close at 2,047.38. The biggest stocks had a good day, with forestry stocks performing particularly well.

But the Wellington market's largest stock, Telecom New Zealand, ended essentially flat, up 1 cent at NZ$5.08. It was down 2 percent for the week.

Hong Kong's China plays rebound

In Hong Kong, the Hang Seng index closed up 0.2 percent at 12,301.68, as bargain hunting carried Wall Street's overnight gains through.

But the Hang Seng lost 2.5 percent on the week. It is still the worst performing Asian market this year, down 18.5 percent.

China's biggest mobile-phone operator weighed on the market. China Mobile lost 0.3 percent to HK$35.30. Analysts said rival mobile phone company and China No. 2, China Unicom, was more attractive.

China Unicom rose 1.2 percent to HK$12.55 after the government said Thursday its sales surged 57 percent in the first half of the year.

Sun Hung Kai Properties, the territory's biggest residential property developer, fell 1.1 percent to HK$70. Hong Kong property is in a persistent slump.

China-related shares staged a slight recovery after tumbling on rumors the Chinese government is again cracking down on "hot money" heading to Hong Kong from the mainland.

Hong Kong's H share index, of China-based companies trading in Hong Kong, rose 2.76 percent to 457.58.

The "red chips," Hong Kong-based companies that do most of their business in China, rose 1.9 percent to 1,069.66.

Hong Kong's stocks are cheaper than those in China, which is why Chinese punters smuggle money into the territory to play them.

Taiwan rises off seven-year lows

In Taiwan, stocks came back from their lowest level since November 1993.

The benchmark Taiex index closed up 0.7 percent at 4,220.33. It rose almost 2 percent during the day.

The market has still fallen 32 percent since February, hit hard by the collapse of computer-chip prices and demand.

Taiwan's transportation stocks leaped 6 percent amid speculation the island would establish direct links with China, to revive its economy.

Despite a strong Taiwanese industrial presence in southern China, Taiwanese people still have to fly there indirectly, typically via Hong Kong.

Exports from Taiwan have slumped sharply and experts are cutting their growth forecasts close to 2 percent.

World microchip foundry leader, and Taiwan's biggest stock, Taiwan Semiconductor Manufacturing Co., fell 0.8 percent to T$60.50.

In South Korea, the benchmark Kospi index closed down 1.5 percent at 537.71. It lost 2 percent for the week.

A key think tank cut its 2001 growth forecast for South Korea for the second time this year, to 4 percent.

Samsung Electronics dropped 0.6 percent to 176,000 won. It is Korea's biggest stock and the world's largest memory-chip maker.

It is trimming capital spending by 16 percent. It said Friday that second quarter earnings fell 29 percent.

Rival Hynix Semiconductor, the world No. 3 in memory chips, slumped to a fresh record low, losing 7.6 percent to 1,400 won.

Hynix said Thursday that quarterly losses had tripled and that it would cut its capital spending and shut a U.S. plant for six months.

In Singapore, the Straits Times index was trading up 0.8 percent at 1,639.76 an hour before its close. Bank stocks were performing well ahead of earnings from state-run bank DBS on Monday.

Reuters contributed to this report.