Asian markets post strong tech gains

HONG KONG, China -- Asian stocks fired ahead on Wednesday, with investors buying into the idea of a tech revival in the second half of next year.

Japanese stocks moved sharply higher. And its gains were outdone by many of Asia's most-tech heavy markets.

Singapore's stock market, which has slumped as the island goes through a severe recession, jumped more than 4 percent.

South Korea climbed even faster, putting on almost 6 percent. And stocks in Hong Kong and Taiwan both gained solidly.

Virtually all of the Asia Pacific region's markets rose, with Australia and New Zealand both closing higher. China's fledgling markets were the only ones to drop.

Tokyo techs lead Nikkei up

In Tokyo, the Nikkei index climbed 2.5 percent to close at 10,713.81.

Tech stocks provided the fuel. Toshiba, the country's biggest chipmaker, climbed 5.2 percent to 522 yen.

The broader Topix index finished up 1.8 percent at 1,047.34.

Fresh figures showed that capital expenditures rose a slight 0.5 percent, year on year, for the seventh quarterly increase in a row.

But Japan's economic picture is far from rosy. Another set of numbers showed a drop in business confidence for large companies in the fourth quarter.

Japan reports its third-quarter gross domestic product on Friday, when it will almost certainly confirm its fourth recession in a decade.

Sony Corp., which normally leads the way for techs, rose just 1.9 percent to 5,960 yen. The Dutch government said Tuesday it would restrict the sale of PlayStation One consoles because the cables contain too much cadmium.

Mizuho Holdings, the world's largest bank by assets, leaped 7.1 percent to 288,000 yen on a good day for bank stocks.

Interest rate cut leads Sydney up

In Australia, the benchmark S&P/ASX 200 index finished up 0.7 percent at 3,347.8.

The market responded warmly to an interest-rate cut from the Reserve Bank of Australia. It cut the official cash rate to 4.25 percent, the lowest rates since the 1960s.

The country also reported a 1.1 percent rise in GDP for the third quarter.

News Corp., the largest listing in Sydney, lifted 4.3 percent to A$14.85. It was enjoying the gains in U.S. markets, where it gets 70 percent of sales.

Bionic ear maker Cochlear rallied 5.2 percent to A$47.34. It has sold off recently after warning growth was slowing.

Trading in property group Westfield America Trust was halted ahead of an announcement. It is reportedly buying nine U.S. shopping malls for $756 million.

New Zealand's benchmark NZSE-40 capital index finished 1.05 percent to the good at 2,049.34.

Recent IPO Fisher & Paykel Appliances continued its strong form, up 2.3 percent to NZ$9.82.

Air New Zealand's B shares, open to overseas investors, rose 2 cents to NZ$0.33. After the close, the airline said an independent report on the government's bailout plan was "fair and reasonable."

Samsung rises daily limit in Seoul

In South Korea, the benchmark Kospi index posted the strongest showing in Asia, closing up 5.9 percent at 688.31.

Turnover was the heaviest of the year, as Samsung Electronics rose the daily 15 percent limit for one day to 264,500 won.

Hynix Semiconductor climbed for a fifth day, up 4.5 percent at 2,780 won. Hynix, the world memory chip No. 3, is hosting executives from No. 2 Micron Technology in talks aimed at a tie-up.

A combination of the companies would surpass No. 1 Samsung. The whole chip industry is benefiting from fresh hope that it has bottomed out.

Micron's stock rose 6.8 percent in overnight U.S. trading.

Taiwan, Hong Kong close well up

In Taiwan, the Taiex index ended up 3.3 percent at 4,924.56. Tech shares drove the rise, following U.S. market gains.

Micron's stock gains fired its Taiwanese competitors. Macronix International gained 6.1 percent to T$26.20. Winbond Electronics rose the daily 7 percent one-day limit in Taiwan, to T$15.90.

The largest listing in Taipei, contract chip foundry Taiwan Semiconductor Manufacturing Co., also climbed the daily 7 percent limit to T$83.50.

In China, the Shanghai B share market - open to overseas investors - finished with a 1.6 percent drop. The Shenzhen B share market fell 3.5 percent.

Investors were spooked by a move Tuesday by authorities to tighten up delisting rules for chronically unprofitable companies. Many investors have speculated on government-backed companies, figuring the government would prop their stocks up.

Hong Kong's benchmark Hang Seng index closed up 2.2 percent at 11,678.44, its highest finish since August 17.

There were strong gains for many of the exchange's tech-oriented China plays. China Unicom, the No. 2 cell-phone company in China, rose 2.8 percent to HK$9.20.

Legend Holdings, the largest computer maker on the mainland, gained 5.7 percent to HK$3.75.

Property stocks were also up, as the prices in Hong Kong's third property auction this year showed the market may be on the way back.

Chung Kong Holdings ended up 3.8 percent at HK$81.25.

Telecom and Internet company Pacific Century CyberWorks rose 1.15 percent to HK$2.20, as Richard Li's embattled firm said it would cut 506 jobs, around 3.6 percent of its work force.

Singapore's Straits Times index was up strongly and rising. In the last hour of trade, it was up 4.6 percent at 1,608.68, having crossed 1,600 for the first time since September 6.

India's main index was up 1.9 percent going into afternoon trade.

Reuters contributed to this report.