Asian stocks up on revamp deals


Currency dealer Akane Esaki flashes a hand signal this week, which ended with the yen again near 133 to the dollar

HONG KONG, China -- Asian markets rallied broadly on Friday, breaking their run of declines on several company reorganizations.

Daiei Inc. lifted the whole Tokyo market, ahead of the restructuring announcement from the huge retailer after the close Friday.

It won a 420 billion yen bailout from its banks. Optimism over the deal helped the Nikkei up 1.63 percent to 10,293.32.

The broader Topix index ran ahead 2.31 percent or 22.74 points to 1,007.64.

Daiei jumped 30.95 percent to 165 yen in heavy trade. Daiei shares are up 68 percent this week.

Skeptics question whether the bank rescue is appropriate, since it continues a pattern of keeping troubled companies afloat. Problem loans are a key issue facing Japan's banks.

UFJ Holdings, one of Daiei's main creditors, fell 1.65 percent to 298,000 yen.

"The formation of a Daiei rescue plan, while its efficacy is debatable, has provided some short-term relief to the market," Joji Maki, a senior director at Baring Asset Management Japan told Reuters.

Weak yen gives exporters a shot

The yen weakened again on Friday, after several days of strength. It had gained ground against the dollar on official denials that Japan is "talking the yen down."

But it was down Friday, popping over 133 to the buck again to 133.03. It settled to 132.71 in European trade.


NTT DoCoMo got a boost from a report it plans to list stock on the world's two biggest markets on March 1

The yen boosted exporters, who typically see profits and sales go up when the currency declines.

Toyota, Japan's top automaker, rose 2.92 percent to 3,520 yen, while electronics giant Sony put on 1.58 percent to 5,990.

NTT DoCoMo Inc. jumped 3.62 percent to 1.43 million yen, on a report it has set a March 1 date to sell stock for the first time in New York and London.

South Korean stocks were some of the only losers in Asia, with most markets up after Wall Street's rise on Thursday.

AIG collapse hurts Kospi

In Seoul, South Korea's main index, the Kospi, fell 0.7 percent to 708.47.

Brokerage Hyundai Securities confirmed that American insurer AIG has pulled out of a deal to buy control of the company.

Hyundai Securities stock fell 12.2 percent to 10,800 won. The Korean government says it is looking for a replacement buyer.

Samsung Electronics, the largest listing, fell 1.33 percent to 296,000 won.

In Taiwan the Taiex climbed 0.39 percent to 5,522.80.

Electronics stocks were a key driver, that subindex up 0.37 percent, but banks fired ahead 0.88 percent.

Normandy, Frucor offers expiring

Australia's benchmark index, the S&P/ASX 200, closed down 0.18 percent at 3,387.0.

Bank stocks were lower, and News Corp., the biggest listing in Sydney, dropped 1.1 percent to A$14.37 ahead of earnings.

On the merger front, AngloGold's offer for Normandy Mining expires later Friday night. Normandy stock eased 4 cents to A$2.01.

Newmont Mining's bid for Australia's biggest gold producer still has a month to run.

New Zealand's NZSE-40 index rose 0.49 percent to 2,100.32. Telecom New Zealand was the main driver, Wellington's largest listing up 2.7 percent to NZ$5.37.

Juice maker Frucor closed flat at NZ$2.28, as a bid from France's Danone for the company expired.

PCCW takes Hong Kong down

Hong Kong's market gave way to late selling, ending down 0.37 percent at 10,972.96.

Asia's worst performing main index last year, the Hang Seng was hurt Friday by Pacific Century CyberWorks, the worst performing Hang Seng component last year.

PCCW dropped 3.4 percent to HK$2.15 and was the most active stock. It said it would offer $450 million in convertible bonds, which could dilute the stock.

Singapore stocks were essentially flat, up 0.02 percent with the Straits Times index at 1,660.89, two minutes from the close of trade.

Indian stocks were down a similarly small amount, off 0.04 percent, in afternoon trade in Mumbai.

Reuters contributed to this report.