Techs take Asian markets higher


Korean telco KT rose Monday after striking an alliance with Microsoft

SYDNEY, Australia -- Stock markets in the Asia-Pacific region closed higher midday Monday on optimism about technology, banking and resources issues.

On a day when Tokyo was closed and Hong Kong traded for only half a day, Taiwan was the strongest performer, with the Taiex up more than 1 percent on gains by tech stocks such as Quanta Computer.

Australia, Korea, New Zealand and Singapore were also higher, with KT -- the former Korea Telecom -- leading the way in Seoul, where the Kospi put on 1.78 points or 0.28 percent to 646.49.

Tokyo was closed to mark Emperor Akihito's birthday. It will reopen Tuesday. Elsewhere in the region, markets in the Philippines and Indonesia were closed Monday.

The Taiex in Taipei jumped 55.49 points or 1.1 percent to 5164.73, with Quanta up 4.85 percent to T$108.

In Singapore the Straits Times index closed up 4.26 points, or 0.3 percent, at 1581.33. That was off an intraday low of 1576.48 in a shortened trading day. SingTel was up 1.17 percent to S$1.73.

HSBC recovers after Friday's drop

Hong Kong likewise traded for only half a day. Its Hang Seng index ended 51.68 points or 0.46 percent higher at 11,209.78 on thin turnover, with heavyweight bank HSBC up 0.8 percent to HK$90.25. That came after HSBC dropped 4 percent on Friday.

Hong Kong will be closed Tuesday and Wednesday for the Christmas and Boxing Day holidays.

Wall Street pointed the way higher for the region after the U.S. market rallied Friday, following an unexpected rise in consumer sentiment.

The blue chip Dow Jones industrial average rose 0.5 percent or 50.16 points to 10,035.34, while the tech-heavy Nasdaq index rallied 1.4 percent or 27.29 points or 1945.83.

In Seoul, the big gainer was KT which finally reached agreement with Microsoft on the sale of a 3 percent stake in the form of bonds for about $500 million .

KT, Microsoft agree on alliance

KT rose 800 won or 1.7 percent to 47,750 won after the state-run telco said it was selling 3 percent to the U.S. software giant at a 38 percent premium to Friday's closing price.

Memory chipmaker Hynix Semiconductor gained 70 won or 3.6 percent to 2020 won, while market heavyweight Samsung Electronics was up 1000 won or 0.4 percent to 252,500 won.

There has been considerable talk of mergers and alliances involving the world's leading memory chipmakers in recent days, focused on the two Korean producers, U.S.-based Micron, Japan's Toshiba and Germany's Infineon.

In Sydney, Australian shares prices were at their highest since early August, with the benchmark S&P/ASX 200 index up 15.6 points or 0.46 percent to 3390.1.

The rally was spurred by the resources sector, on stronger commodity prices and further rationalization.

There was interest in a proposed merger between Papua New Guinea resource investment company Orogen Minerals and oil and gas producer Oil Search that would create a $600 million resources group.

Orogen jumps on merger talks

Orogen jumped to its highest close since 18 January, finishing up 11 percent at A$1.50, while Oil Search climbed 7.3 percent to A$1.17, its highest since 7 August.

The battle between international gold giants AngloGold and Newmont Mining for Australian gold producer Normandy continues. Normandy closed 1 cent down at A$1.82, a discount to U.S.-based Newmont's A$1.87 scrip and cash bid, but at a premium to AngloGold's A$1.75 offer.

Stronger crude oil and base metals prices pushed resources giant BHP Billiton 1.83 percent higher to A$10.38, while Anglo Australian miner Rio Tinto rallied 1.02 percent to A$36.67.

Among blue chips, media group News Corp dipped 9 cents or 0.6 percent to A$15.44, while telco giant Telstra rallied 9 cents or 1.7 percent to A$5.39.

Australian banking and finance shares were mainly higher, with Commonwealth Bank of Australia the strongest, up 1 percent to A$29.92. But Westpac Bank slipped 9 cents or 0.6 percent to A$15.63.

In New Zealand, the Top 40 added 9.85 points or 0.48 percent to 2046.90. Shares in Tranz Rail were halted ahead of its announcement it would buy the Auckland rail corridor from the NZ government for NZ$81 million.

Reuters contributed to this report.