Asian stocks follow through on gains

By staff and wire reports

HONG KONG, China -- Asian stocks tended up on Wednesday, continuing Tuesday's strong gains.

In Tokyo, by far Asia's biggest market, the Nikkei lost ground after being higher for much of the day. But the broader Topix index, which isn't as dependent on tech stocks, gained.

Hong Kong closed slightly in positive territory, holding onto Tuesday's 4.3 percent rise.

China stocks also gained, seeing a follow through from the previous day's strong showing, after Chinese authorities said they would stop selling state-owned stock.

Coup talk hurts Philippines market

In Manila, stocks set another 10-year low. Talk was swirling that police officials were trying to launch a coup to displace President Gloria Macapagal Arroyo, who took over at the start of the year.

Philippines stocks have sunk progressively since the U.S. started retaliating in Afghanistan and as the Abu Sayyaf gets more violent in the southern islands.

The Philippines composite index ended down 0.9 percent at 979.34.

But it was virtually alone in the Asia Pacific in losing ground. Australia put on just over a percentage point. New Zealand gained almost half that.

Taiwan and Korea both rose more than 2 percent.

Locking in tech gains in Tokyo

In Tokyo, the indexes were split, an unusual situation. The Topix, which market watchers tend to follow as a more accurate measure of all of Japan's stocks, rose 0.4 percent to 1,100.22.

But the better-known Nikkei 225 stock index, which gained a strong tech bent when it was recently reweighted, fell 0.55 percent to 10,802.15. At one point during the day it touched 10,960.91, or about 100 points above Tuesday's close.

Japanese tech stocks are starting to report earnings. On Wednesday, chipmaker Fujitsu reported a first-half operating loss of $482 million and said it would only break even, in operating terms, for the fiscal year.

Its net profit numbers are more dire. Still, analysts had expected a poor performance, and the stock fell just 1.1 percent to 1,049 yen.

Fujitsu is the first of Japan's Big Five chipmakers to report. Toshiba and NEC also post their numbers this week.

Consumer electronics leader Sony Corp., normally a sign of how all techs are doing, lost ground, too. It fell 3.9 percent to 4,950 yen after rising on Tuesday to its highest close since Sept. 6.

Mizuho Holdings, the largest bank group in the world, rose 3.7 percent to 394,000 yen. On Monday it had finished at its lowest point since it listed in September 2000.

Sumitomo Mitsui Banking Corp., another of Japan's Big Four banks, rose 8.2 percent to 769 yen.

China's stock freeze boosts market

Hong Kong's Hang Seng index had powered ahead on its Chinese ties on Tuesday. It followed through on the gains on Wednesday, adding 0.2 percent to close at 10,243.46.

HSBC, Hong Kong's largest listing, rose 1.47 percent to HK$86.75. It has been beaten up by worries about world growth of late.

Hong Kong stocks will be closed Thursday for a holiday. One analyst said he expected the Hang Seng to trade between 10,000 and 10,400 for the near term.

In neighboring China, the Shenzhen and Shanghai B shares - open to overseas investors - both followed through on Tuesday's gains of near 10 percent.

Shanghai's dollar-denominated B shares rose 0.39 percent. Shenzhen's Hong Kong dollar-denominated B shares rose 0.43 percent.

In Australia, the market got a boost from international investors jumping in.

The benchmark S&P/ASX 200 index rose 1.02 percent to close at 3,246.0.

News Corp., the largest listing in Sydney, led the way again, 6.6 percent to A$15.00 while telecoms giant Telstra managed a five-cent gain to A$4.92, as it bounced back from Tuesday's loss.

MIM, a diversified miner, was the most heavily traded stock, rising five cents to A$1.06 on turnover of 21 million shares.

Among other resources stocks, BHP Billiton finished up 2.4 percent at A$9.15, and Anglo Australian miner Rio Tinto rose 1.3 percent to A$32.36.

New Zealand's benchmark NZSE-40 Capital index closed up 0.48 percent at 1,04.93.

Frucor rose 50 cents to NZ$2.38 after French yoghurt and drinks maker Danone launched a NZ$2.35 bid for it.

Telecom New Zealand, Wellington's largest listing, lost 2 cents to NZ$4.21 and hit an eight-year low of NZ$4.13 during the day.

Taiwan's Taiex rose 2.90 percent to 3,986.67. Electronics shares had a ride, rising 4.3 percent, as short sellers got squeezed.

Taiwan Semiconductor Manufacturing Co., Taiwan's largest listing, rose the daily 7 percent limit to T$61.50.

Rival United Microelectronics Corp., world contract chip No. 2 behind TSMC, was also limit up to T$31.50.

South Korea's benchmark Kospi index also climbed, closing with a gain of 2.07 percent at 541.49. Like Taiwan, its fortunes tend to be tied to its chipmakers.

Singapore's Straits Times index was up 0.8 percent at 1,416.94 in late trade, with Singapore Airlines showing good gains ahead of earnings on Friday.

Reuters contributed to this report.