Asian stocks gain on light trade


Exporters like Toyota are getting a boost from the yen, which hit 132 to the dollar on Thursday and is down over 15% this year

By staff and wire reports

HONG KONG, China - Asian stocks drove forward on Thursday, but trading was light, with many investors in holiday mood.

In Tokyo, the Nikkei index climbed 2.6 percent to close at 10,457.61. The Japanese currency was the center of attention again, as it touched 132 to the U.S. dollar.

The broader Topix index climbed 1.98 percent to 1,013.73.

The yen's sudden weakening has started to put pressure on other Asian currencies.

But on Thursday, it was giving Japanese exporters a boost. Their products get more attractive overseas, with Japanese goods now at a discount of more than 15 percent over the start of the year thanks to the currency's drop alone.

Exporters get a boost in Tokyo

Toyota Motor Co., the country's largest carmaker, rose 2.5 percent to 3,250 yen. Japan's No. 3 car company, Honda Motor Co., rose 1.98 percent to 5,140 yen.

The yen has lost a little ground against the dollar each day the past few weeks, and exporters have lately seen little benefit to their stock prices. Market watchers note that cheaper goods do very little if demand is bad.

But the benefits of the currency's decline were broad on Thursday. Sony Corp., which gets a third of its sales in the United States, jumped 3.93 percent to 5,820 yen.

Tokyo stocks will trade only for a half day on Friday, for their last session of 2001. They are closed on Monday, ahead of the New Year's holiday.

Sydney at five-month closing high

In Australia, traders came back from the Christmas break with a vengeance. The S&P/ASX 200 index rose 0.8 percent to 3,417.6, taking Sydney stocks to their highest close in more than five months.

There was no noticeable effect on trading from brushfires now raging in the Sydney suburbs.

Gold stocks were in favor, after South African miner AngloGold raised its offer for Normandy Mining, Australia's largest gold producer, by 10 cents a share.

Normandy closed up 1.6 percent at A$1.85, a cent above AngloGold's new offer price.

News Corp., the market's biggest listing, rose 0.9 percent to A$15.58. Bank stocks were also moving forward, led by ANZ Bank, up 0.6 percent to A$17.85.

The biggest gains came from Novogen, up 21 percent to A$3.03, after the drugmaker reported progress on its anticancer drug, phenoxodial.

New Zealand's NZSE-40 capital index was one of the few Asia Pacific losers, down 0.28 percent at 2,039.94.

Trading was very quiet, after a two-day break. Telecom New Zealand, the largest stock, eased 0.6 percent to NZ$4.93.

Takeover target Frucor Beverages fell 0.4 percent to NZ$2.32, after Danone extended its bid until January 18. But Frucor's directors are recommending that shareholders reject it.

South Korea up on financial stocks

In South Korea, the Kospi index closed up 2.25 percent at 668.55. Financial-share gains were leading the way.

After-hours electronic trade started in Seoul on Thursday, and investors were betting brokerages will gain from heavier volume.

Daewoo Securities closed up 7.8 percent at 9,800 won, on a report it might sell its controlling stake in a state-run financial company.

Kookmin Bank, the country's largest bank, rose 4.28 percent to 48,500 won.

Taiwan's market lost 1.1 percent, the Taiex ending at 5,332.98. The electronics subindex fell 1.5 percent.

The Taiwan dollar is close to a 15-year weak level against the dollar, thanks to the yen's weakness.

Acer, Taiwan's largest computer maker, drifted 2.8 percent as investors took year-end profits.

In Hong Kong, the Hang Seng index was up 1.29 percent at 11,354.36 just before the close.

China oil plays benefit from OPEC move

Blue chip stocks were leading the gains, though turnover was low. China oil plays like CNOOC and PetroChina were also up on OPEC's announced production cut.

Property stocks were also getting a bounce, with Henderson Land up close to one percent on reports of good holiday property sales. That was spilling over to peers such as Sung Hung Kai Properties.

China's B share markets in Shanghai and Shenzhen were off, though, down 0.5 percent as the government tries to crack down on persistently loss-making companies, now threatened with delisting.

Singapore's Straits Times index was trading up 1.4 percent at 1,609.14. Banks and large cap stocks were leading the way, but the gains were spilling over into tech stocks, too.

Stocks were also narrowly ahead as India went into afternoon trade. The Mumbai market was up 0.14 percent.

Reuters contributed to this report.