Asian stocks slump on Greenspan gloom


Korean stocks fired ahead 2.3 percent but Greenspan and the U.S. stock slide meant it was down for most Asian markets

HONG KONG, China -- Seoul shares ended the first trading day of the week soaring. Tech shares drove the Kospi up more than 2 percent.

There were other gainers, with Hong Kong narrowly in the black. Singapore was up in late trade.

But Taiwan and Australia markets were pulled down by gloomy comments from U.S. Federal Reserve chairman Alan Greenspan on Friday, which prompted a drop in U.S. stocks.

Japan's markets were closed on Monday for the Coming of Age holiday in Japan, when 20-year-olds formally become adults.

Markets reopen in Tokyo on Tuesday. The Japanese yen strengthened and stood at 131.85 to the dollar in European trade.

Samsung boosts South Korea

In South Korea, the Kospi ended 2.29 percent higher at a session high of 744.03. It was buoyed by electronic-parts maker Samsung Electro-Mechanics, which gave an upbeat earnings forecast.

The stock rose to a six-month peak of 9.72 percent to 47,400 won after forecasting 42 billion won in earnings before interest and taxes (EBIT) for the fourth quarter.

Chip titan Samsung Electronics also surged 7.84 percent to a 17-month closing high of 330,000 won.

It is the largest listing in Seoul. It rose on a report that Morgan Stanley had boosted its target price for the stock.

The tech-oriented Kosdaq market inched up 0.12 percent to 75.11

Gloomy comment knocks Taiwan

In Taiwan, stocks ended lower after a decline in U.S. shares and comments by Greenspan that it is "premature" to think a steady economic recovery is now under way.

The Taiex slipped 1.33 percent to 5,611.86. Winbond Electronics fell the daily limit of 7 percent, to T$25.60.

But TSMC, the biggest listing, rose 0.57 percent to T$88.00, after CEO Morris Chang said the first quarter was looking good.

It was the same case in Australia, where shares ended slightly lower as investors absorbed Greenspan's warning. The benchmark S&P/ASX 200 index closed down 0.3 percent at 3,407.3

Normandy Mining closed four cents higher at A$1.95, its highest level in more than five years, bolstered by AngloGold's move after the close on Friday to extend its bid for the company until January 18.

AngloGold is locked in a fierce battle with Newmont Mining to gain control of Australia's largest gold miner.

News Corp., Sydney's largest listing, fell 1 percent to A$15.04. It gets 70 percent of sales in the United States.

New Zealand shares were also battered by Greenspan's comment, prompting overseas institution to lock in profits.

The benchmark NZSE-40 index closed down 1.1 percent at 2,091. Telecom New Zealand fell 2.6 percent to NZ$5.31.

Hong Kong manages a gain

In Hong Kong, the Hang Seng scraped out a 0.38 percent gain to end at 11,209.43.

It broke its pattern of following U.S. movements. On Friday, Greenspan's comments pushed the blue-chip Down Jones industrial average down 0.8 percent, while Nasdaq shed 1.21 percent.

On Monday, Hong Kong's second-largest stock, China Mobile, staged a rally after sharp declines last week.

It closed up 2.3 percent at HK$24.75. Smaller rival China Unicom rose further, up 3.16 percent to HK$8.15.

Both suffered after China opted to carve out two new cell-phone licenses in the mainland.

HSBC, Hong Kong's largest listing, continued its Argentina-driven slide, down 0.56 percent to HK$89.00.

U.S.-oriented stocks like Johnson Electric, which gets the bulk of sales there, suffered. It closed down 2.7 percent at HK$9.00.

In Singapore, the main share index was up strongly in the last hour of trade. Funds had been buying big-cap stocks through the day.

The Straits Times index was up 2.14 percent at 1,740.51.

India's market was also performing well, after this weekend's pledge from Pakistan to crack down on militants.

The Bombay Stock Exchange was up 1.95 percent in early afternoon trade.

Reuters contributed to this report.