Asian stocks end year many want to forget

By staff and wire reports

HONG KONG, China -- Asia Pacific stock markets closed slightly down on Monday, ending what was a year to forget for many investors.

But there were good gains in Asia if you knew where to look. South Korea, Taiwan, Australia and New Zealand all rose for the year.

And China's young markets outdid the rest of the world, rising over 90 percent.

By far the largest Asian market is in Japan, though. And it was not a pretty picture. Neither was Hong Kong, which posted the worst losses for the year.

Japan's stock market was closed for New Year's eve and remains shut through Friday, when stocks will trade for half a day. They will stay closed next Monday, too.

But the Nikkei index lost 24 percent during 2001, finishing the year at 10,542.62. Declines in the currency, which has lost 15 percent of its value, further dent any profits for overseas investors.

Topix down 20 percent in Tokyo for 2001

The broader Topix index, which includes all the stocks in Tokyo's first section, dropped 20 percent over the course of the year, to end at 1,032.14.


Tokyo Stock Exchange officials clap at a ceremony to end the year, but there was little to celebrate with the Nikkei down 24%

Markets across the globe are closed Tuesday as revelers welcome in 2002. A few Asian markets such as South Korea were celebrating a solid performance in 2001. But they had to fight a strong headwind from U.S. stocks.

American trading ended on a down note in a shortened session on Monday. The Dow Jones industrial average fell 1.1 percent for the day to end at 10,021.57.

The Dow dropped 7.1 percent for the year. On the back of a 6 percent decline in 2000, it was the first back-to-back annual drop since 1974.

Nasdaq fell 1.8 percent on Monday, compounding its annual drop to 21 percent. That comes after a 39 percent lurch lower in 2000.

Like Tokyo, South Korea's market was also closed on Monday, but will resume on Wednesday. It was the strongest performer of the main Asian markets for 2001, benefiting from attempts to change the way Korea's economy works.

With a heady year-end run off September lows, the Kospi index ended the year up 37 percent at 693.70.

In Taiwan, the Taiex closed Monday up 2.83 percent at 5,551.24. For the year, stocks rose 17.14 percent in Taipei.

The performance is all the more remarkable considering Taiwan is in its worst recession on record, likely to see its economy drop 2 percent this year.

But it was a turbulent time for that tech- and chip-driven market.

Taiwan bucks recession, unlike Singapore

On Monday, chipmakers shone the most. Winbond Electronics, Mosel Vitelic and Nanya Technologies all rose the daily 7 percent limit for a one-day rise.

Traders chalked the strong showing up to "window dressing" as fund managers buy stocks that have done well this quarter. Trading resumes on Wednesday.

In Asia, only Singapore is suffering more than Taiwan. It has a similarly export- and tech-driven economy. After the close, the government said GDP shrank 2.2 percent for the year.

The city-state's Straits Times index closed Monday down 0.15 percent at 1,623.60. Trading kicks back in on Wednesday.

For the year, Singapore stocks fell 15.7 percent. Experts now say they see some signs of recovery, after what many regard as the worst year for Singapore's stocks and companies.

China best, Hong Kong worst performers

China's fledgling markets again proved the best performers in the world, posting more than 90 percent gains for the year.


The jobless rate is at a record 5.5 percent in Japan, and Taiwan and Singapore are suffering harsh recessions

The Shanghai B share index rose 0.74 percent on Monday, ending at 171.531. For the year, they rocketed up 91.55 percent.

Shenzhen's B shares lifted 0.21 percent to 265.67, for a 2001 rise of an eye-popping 92.95 percent.

Trading resumes on Friday in China, where stocks gained from a flood of money chasing a small pool of stocks. Prior to this year, only overseas investors could buy B shares. But they were opened to Chinese investors in February.

They also benefited from the country's accession to the World Trade Organization and strong 7.3 percent growth rate, the best in Asia this year.

The story was very different in neighboring Hong Kong. The Hang Seng index dropped 0.3 percent on Monday's shortened session, ending the year at 11,397.21.

For the year, the Hang Seng fell 24.5 percent, earning Hong Kong the dubious distinction of the worst performing market in Asia.

Property stocks took it on the chin, exports are way down, and deflation has set in, as it also has in Japan. With a currency that is pegged to the dollar, Hong Kong's market also tends to map U.S. stocks.

Bank stock HSBC, typically a staid investment, summed up a poor year for bulls. Hong Kong's largest listing dropped 21 percent in 2001 to end at HK$91.25.

China Unicom, mainland China's second-largest cell phone company, fell 1.7 percent on Monday to HK$8.60, making it one of the biggest movers. For the year, Unicom lost 28 percent of its value.

Its bigger peer, China Mobile, fell 35.6 percent for the year, and 0.54 percent on Monday, ending 2001 at HK$27.45. It is the second-largest listing in Hong Kong.

Henderson Land proved the day's biggest gainer, up 3.83 percent to HK$35.20, after reporting strong sales over the weekend at a new apartment development. It still ended the year down 11.3 percent.

Once the market's darling, Richard Li's Pacific Century CyberWorks lost a staggering 57.4 percent of its value in 2001, closing unchanged Monday at HK$2.51.

Australia and New Zealand book solid 2001 gains

Stocks in Australia and New Zealand both dropped in value on Monday, in quiet trade ahead of a holiday. But both markets gained well for the year, making them some of the strongest Asia Pacific performers.

In Sydney, the S&P/ASX 200 index fell 0.1 percent on Monday to finish 2001 at 3,422.3. But for the year, Australian stocks rose 6.5 percent.

Normandy Mining was a focus of Monday's trade, down 2 cents to A$1.81 as Newmont Mining and AngloGold continue their takeover battle for Australia's largest gold producer.

Australia's economy is more insulated than most and relies on a hefty dose of support from mining and natural-resources companies.

The story is similar in New Zealand, where the NZSE-40 index lost 0.37 percent on the day to end 2001 at 2,053.26.

But Kiwi stocks mustered a gain of 7.9 percent for the year. Telecom New Zealand, Wellington's largest listing, tells the story.

Telecom fell 1.4 percent on Monday to NZ$5.00. But it rose 4.0 percent for the year.

Air New Zealand was the market's worst performer for the year, as the government moved to bail out the airline, taking over around 82 percent of its shares.

Indian shares jumped 2.5 percent on Monday, with the main Mumbai index closing at 3,235.14. But they were down 17.8 percent for the year.

Reuters contributed to this report.