Asian stocks hang onto turnaround


Korean markets have been on a strong run so far this year, with financial stocks taking over from chips on Monday

HONG KONG, China -- Asian stocks sustained their gains on Monday, with markets like Japan and South Korea coming back into the black from morning losses.

It was the first full day of trade in 2002 for Japan, where markets opened 2002 with a half-day rise of 3.12 percent on Friday.

On Monday, the Nikkei rose 0.65 percent to 10,942.36, techs and exporters carrying through on last week's gains.

Sony Corp., which gets some 30 percent of its sales overseas, rose 0.78 percent to 6,740 yen, its highest close for August.

It often leads the way for techs. But there were other gainers, too.

The broad Topix index ended up 0.11 percent at 1,055.14, with big banks getting a boost out of political moves.

Stocks drove ahead almost 3.5 percent in Taiwan. There was a gain of 1.6 percent in Hong Kong, with New Zealand's gains approaching that.

Markets also rose in South Korea, Singapore and Australia. Mumbai's market was trading up in mid-afternoon in India, with the main Bombay Stock Exchange up 0.85 percent at 3,404.41.

Volatile trading in Tokyo

In Tokyo trade was volatile, with speciality chipmaker Kyocera Corp. ending up 2.78 percent at 9,250 yen, after spending much of the morning in the red.

Market watchers cited profit taking, as investors locked in Friday's strong gains.

Japan's largest chipmaker, Toshiba Corp., dropped 1.99 percent to 492 yen, after an 11.56 percent rise on Friday.

The yen has strengthened to 130.72 against the U.S. dollar, after hitting 132.30 over the New Year holiday.

But exporters are still expected to gain from a weaker yen. On Monday, the chairman of the influential Nikkeiren group -- the Japan Federation of Employer's Association -- said he expects the dollar to trade as high as 140 against the yen in 2002.

Bank stocks took hope after officials said this weekend that the government will step in with state cash if banks face a crisis.

Mizuho Holdings, the world's biggest bank by assets, leaped 9.58 percent to 286,000 yen. Japan's No. 4 bank, UFJ Holdings, ran up 7.9 percent to 313,000 yen.

Isuzu Motors jumped 12.3 percent to 82 yen, after General Motors said bankers were ready to help to stop the truckmaker sliding into bankruptcy.

Kospi up on financials, not chips


Japan's market has made it two days of out of two for gains so far in 2002 but its economy continues to struggle

In Seoul, the Kospi ended up 0.5 percent at 751.48, a turnabout from an earlier loss. That was its highest close since July 21, 2000.

But it was a sedate day for a market that has raced away on chip gains so far this year.

Financials were the main movers. Brokerage stocks rallied. And Kookmin Bank, the biggest in South Korea, jumped 3.5 percent to a life-time high of 58,500 won.

Chipmakers stalled on Monday. Samsung Electronics, the largest listing in Seoul, ended down 0.3 percent at 318,000 won, regaining most of what at one point was a 3.3 percent decline.

In Taiwan, the Taiex roared up 3.48 percent to 5,834.89.

Electronics stocks were the main gainers, with that subindex firing ahead 3.8 percent on overseas buying.

Taiwan Semiconductor Manufacturing Co., the largest listing in Taipei, gained 3.9 percent to T$92.50.

Rival United Microelectronics Corp.. climbed 0.96 percent to T$52.50.

Acer Inc., the largest personal computer maker in Taiwan, lifted the daily limit for a one-day rise, 7 percent, to end at T$22.50.

The market may get further confidence from bonus cash as Taiwanese employees approach the Chinese New Year in mid-February.

Hong Kong gets export boost

That would also boost the market in Hong Kong. The Hang Seng ended up 1.6 percent at 11,892.64 on Monday.

Exporters led the gains, with Johnson Electric up 5.1 percent to HK$9.25. It gets most of its sales in the United States.

Shipping and trading company Li & Fung rose 6.3 percent to HK$10.10, and also looks to the United States for the bulk of sales.

Bank HSBC underperformed, rising just 0.26 percent to HK$95, as worries swirl about its exposure to Argentina.

Motorola dealt the city's economy a blow with news it is cutting as much as 800 jobs in Hong Kong this year.

In China, the Shanghai B share index fell 0.12 percent to 168.822. It was depressed by a drop of around 1 percent in the A shares, which only Chinese investors can buy.

State media reported profits for A share companies fell 10 percent in 2001. They must report them by April 30.

The Shenzhen B share index rose 0.11 percent to 261.91 on very low volume.

Sydney, Wellington move ahead

In Sydney, the S&P/ASX 200 index climbed 0.33 percent to 3,446.9. Media and mining stocks had a strong showing.

News Corp., which accounts for around 10 percent of the index, rose 2 percent to A$15.66.

Mining giant BHP Billiton surged 3 percent to A$11.24, its highest since May 23, while Rio Tinto gained 0.9 percent to A$38.37.

Gold producer Normandy Mining fell 1 cent to A$1.85 on heavy trading, as the takeover battle between AngloGold and Newmont Mining for control of the company continues.

New Zealand's main NZSE-40 Capital index hit an 8-month high, rising 1.2 percent for the day to 2,088.02.

Telecom New Zealand, which accounts for 22 percent of the index, fired most of the rise, up 3.2 percent to NZ$5.21.

Takeover target Frucor Beverages gained as its directors said they would make an announcement about the NZ$2.35 a share bid from France's Danone Group.

Singapore's Straits Times index closed up 1.03 percent at 1,695.95, a hair's breadth off the 1,700 mark that it crossed during the day.

That was its first time above 1,700 since last July. Big stocks like DBS Group, the largest bank in Southeast Asia, and flag carrier Singapore Airlines were the main gainers.