Asian stocks break losing streak

Stocks like Sony broke long losing streaks Tuesday, as markets through Asia saw bargain hunting

By staff and wire reports

HONG KONG, China -- Asian markets rallied Tuesday, breaking a four-day losing streak. Investors were building on Nasdaq's 1.1 percent overnight gain.

Stocks gained ground in all three of the region's biggest markets: Japan, Australia and Hong Kong.

But Taiwan slumped to a fresh six-month low. South Korea lost a little ground.

The Singapore dollar sank to an 11-year low against the U.S. dollar, though stocks there were up.

The city-state posted disappointing second-quarter growth, with a drop of 0.8 percent year over year. That means Singapore is technically in a recession.

Sony up on bargain hunting

In Japan, the benchmark Nikkei index put on 0.5 percent to end at 12,300.41. The broader Topix index gained 0.9 percent to 1,249.34.

Investors were hunting for bargains in battered tech shares such as Sony Corp., after Nasdaq's first gain in five sessions.

High-tech bellwether Sony rose 1.3 percent to 7,240 yen. It had lost 12.8 percent in a six-day slide that had it trading at 1999 levels.

Chip and computer maker Fujitsu Ltd. gained 4.1 percent to 1,208 yen, also snapping a six-day losing streak.

High-tech shares have been under pressure after a barrage of profit warnings from major U.S. and European companies.

Major banks also advanced due to concerns that the recent sell-off may be a little overdone.

Mizuho Holdings Inc., the world's largest bank by assets, jumped 4.5 percent to 530,000 yen, after losing 11 percent in a four-day slide.

Another of Japan's Big Four bank groups, Sumitomo Mitsui Banking Corp., rose 5.63 percent to 975 yen.

Banks lead Sydney stocks

In Sydney, the benchmark S&P/ASX 200 index retraced earlier losses to close up 0.4 percent at 3,356.7.

The index was driven up by gains in banking and mining stocks.

Banks had gained as cautious investors flew to safety after the Australian market set a record high. After a sharp selloff, investors reckon it's time to buy back in.

ANZ led the way with a 2.5 percent jump. The banks helped offset losses in Australia's biggest stock, News Corp., which accounts for 11 percent of the benchmark.

The media group closed down 1.6 percent at A$17.47, with continued uncertainty over its bid for for Hughes Electronics Corp.'s DirecTV satellite service.

Mining stocks recovered from losses due to soft metal prices early in the day. Rio Tinto, WMC and MIM Holdings all ended higher, although the world's largest miner BHP Billiton lost ground.

Australia's biggest telecom company, Telstra Corp., rose a cent to A$5.31. That's a second day of gains after the stock was punished for an earnings warning in June.

New Zealand followed Australia's gains. The benchmark NZSE-40 Capital index rose 1.1 percent to 2,048.81. The market's biggest stock, Telecom New Zealand, rose 2.5 percent to NZ$5.28.

China stocks get Olympic boost

In Hong Kong, the Hang Seng index ended up 0.2 percent at 12,713.90. The banking and property sectors that drive the market were both higher.

But China's largest computer maker, Legend Holdings, led the Hang Seng's gainers. It rose 4.2 percent to HK$4.35.

Hong Kong's China-oriented H shares and red chips rose on the prospect Beijing will win its bid for the 2008 Olympics.

Taiwan's benchmark Taiex index lost 0.9 percent to end Tuesday at 4,616.71. It has fallen 5.5 percent in the last six days to hit its worst close since December 27, 2000.

Electronics stocks lost early ground gained by Nasdaq's bounce to end down. Government attempts to boost the market with changes in trading rules haven't been able to offset the effects of Taiwan's economic slump.

The Taiwan dollar hit a fresh 33-month low against the U.S. dollar, at TW$34.71. Export and import numbers released Tuesday showed the worst quarter since tracking began in 1976.

In South Korea, the benchmark Kospi lost 0.3 percent to 558.60. Samsung Electronics, the market's biggest stock, lost 1,000 won to 170,000 won, its worst close since January 3.

Singapore's Straits Times index was up 1.3 percent at 1,675.58 in afternoon trade, despite fresh evidence of the country's economic woes.

Bank stocks gained on a report OCBC Bank is negotiating with key shareholders for Keppel Capital.

Reuters contributed to this report.