Investors buy, send Nikkei back up


Tokyo shares broke its losing run as investors picked up battered shares

HONG KONG, China -- Tokyo shares were higher by midday Wednesday as investors put the brakes on a burst of aggressive selling that sent the benchmark Nikkei to an 18-year-low the previous day.

But heavy selling of blue chip shares and Wall Street's decline Tuesday dragged down markets in Australia and South Korea.

U.S. stocks ended lower on poor profit forecasts from telecom companies.

The Dow Jones Industrial Average closed down 0.02 percent at 9,685.43, while the tech-laden Nasdaq slipped 0.92 percent at 1,838.52.

In Tokyo, investors picked up battered shares such as NEC Corp Wednesday, lifting its shares 2.27 percent to 902 yen following a 12-day losing streak in which it lost nearly 30 percent.

By the end of the morning session, the Nikkei 225 average had gained 55.91 points or 0.59 percent at 9,531.51. The broader capital-weighted Topix index was also up 3.70 points or 0.40 percent at 929.97.

Automakers, techs up

The main index had retreated in previous days following the release of dismal corporate earnings, jitters over banks' bad loans, and pessimism over the future of Prime Minister Junichiro Koizumi's pledged economic reforms.

While automakers and techs such as Toshiba and Fujitsu were up, the big banks continued to slide Wednesday after ratings cuts the previous day.

Mizuho Holdings dropped 1.9 percent to 206,000 yen, Mitsubishi Tokyo Financial Group lost 0.56 percent to 704,000 yen and Sumitomo Mitsui Banking Corp fell 3.26 percent to 416 yen.

But UFJ Holdings moved against the trend, up 0.42 percent to 241,000 yen.

In South Korea, shares edged lower in early trade before climbing into the black. as investors locked in gains from Tuesday's steep rise and after U.S. stocks slipped.

The bellwether Kospi index was up 4 points or 0.54 percent at 743.75. SK Telecom was up, as was market heavyweight Samsung Electronics and Hyundai Motor.

Steel giant Pohang Iron and Steel shed 2 2.37 percent to 123,500 won.

Kookmin Bank, South Korea's largest lender, eased 1.22 percent to 56,500 won.

Hynix Semiconductor added 1.6 percent to 2,510 won, boosted by reports that U.S. Micron Technology and German Infineon Technologies would make final offers for an alliance with the Korean chipmaker on Friday.

Resources and gold shine

The Australian stock market lingered in negative territory at midday as weakness in major blue chips weighed against strength in resources and gold stocks.

The benchmark S&P/ASX 200 index was down 7.7 points or 0.2 percent to 3,443.8 points by noon with media giant and market leader News Corp applying much of the pressure.

News Corp slipped to a five-month low, off 1.5 percent to A$12.99 following Wall Street's overnight decline.

Leading investment bank Macquarie Bank slid 8 percent to A$33.75 after it said it would post only a modest improvement in full year net profits to March 2002.

Commonwealth Bank dropped 1.2 percent to A$32.39, while market leader National Australia Bank lost one percent to A$33.68.

But gains in gold shares, which rose on better prices and acquisition talk, helped the local market cap losses.

Normandy Mining led the gainers. It rose 4.8 percent to A$2.39. Newcrest Mining and Lihir Gold both gained four percent to A$5.43 and A$1.55.

Diversified resources giant BHP Billiton gained two percent to A$11.93, but Anglo Australian rival Rio Tinto gave up 1.6 percent to A$39.99.

Improved corporate sales

Taiwan shares rose in early trade on the last trading session before a long Lunar New Year holiday. Technology shares led the gains, inspired by improving January corporate sales.

The benchmark Taiex index was up 117.12 points or 2.00 percent at 5,961.37.

Shares in Singapore also firmed in early trade, lifted by bargain hunting in blue chips.

The benchmark Straits Times Index was up 1.12 percent or 19.34 points at 1,746.97, after having lost 3.3 percent in the past three days.

Banking form DBS Group Holdings rose 2.80 percent to S$14.70, while Singapore Airlines climbed 2.42 percent to S$12.70.

But Hong Kong stocks edged lower, dragged won by clue chip losses.

The benchmark Hang Seng Index was off 0.16 percent at 10,592.28 in late morningy trade, dragged down by losses in top fixed line phone operator Pacific Century Cyberworks amid worries over the global telecom sector.

Shares of PCCW were down 1.04 percent to HK$1.90, as sentiment over the telecom industry was dented by a poor earnings forecast from No.3 U.S. long-distance telephone company Sprint Corp.

Sprint and its wireless unit Sprint PCS reported quarterly losses and cut their outlooks for 2002.

Shares of Chinese-language broadcaster Phoenix Satellite Television were 1.08 percent lower at HK$0.92 ahead of the release of second quarter results later on Wednesday.

The company is expected to post another loss.