Tokyo, Australia close higher


The Nikkei continued Monday's good finish of 9686, adding almost another 200 points Tuesday to 9877.99

TOKYO, Japan -- Strong gains by tech issues and banking stocks helped lift Japan to a higher close Tuesday, with the benchmark Nikkei 225 average up almost 2 percent.

The broader capital-weighted TOPIX index did even better, putting on more than 2.5 percent.

Mizuho Holdings, the world's biggest bank by assets, closed 3000 yen or 1.25 percent higher at 243,000 yen.

Elsewhere in the region, Australia and the Philippines closed higher but New Zealand finished in the red after initially trading in the black.

A two-day rally in the U.S. helped lift Tokyo, which was one of a handful of Asian markets open this week.

Markets in Hong Kong, Korea, Singapore, Malaysia, Indonesia, China and Taiwan are among those closed.

The Lunar New Year holidays are in full swing in most of Asia, as investors welcome the Year of the Horse under the Chinese zodiac.

In Tokyo, which was resuming trade after Monday's national holiday in Japan, the Nikkei jumped 191.93 points or 1.98 percent to close at 9877.99, while the TOPIX rose 24.13 points or 2.54 percent to 974.10.

Australia near record

In Australia, the benchmark S&P/ASX200 finished near record territory, up 4.6 points or 0.13 percent to 3481.1, after touching 3496 at one point in the morning.

Its record close is 3490.3, set in June last year.

A good profit result from leading brewer Foster's helped push the market up. Foster's closed 5 cents or 3.12 percent higher at A$4.96.

But big banks CBA, ANZ and NAB eased, as did gold stocks Normandy Mining and Lihir.

Resources giant Rio Tinto closed at A$40.12, a gain of 0.9 percent and close to its record high of A$41.00.

Market heavyweight, media group News Corp, was 5 cents or 0.37 percent lower to A$13.50. It reports first-quarter earnings Wednesday.

New Zealand's NZSE Top 40 finished the day down 2.9 points or 0.14 percent to 2085.41. Independent Newspapers eased after a week or more of strong gains.

In Manila, the PSE composite index added 16.45 points or 1.2 percent to close at 1382.41.

In Japan, investors are hoping for guidance on the country's future economic policy ahead of U.S. President George W. Bush's visit to Japan later this month.

"Selling looks thin and investors continue to cover their short positions," Minoru Tada, a director at World Nichiei Securities, told Reuters news agency.

"Nothing new came out of the G7 meeting. But the government is now keeping a closer eye on the stock market and investors are taking notice," Tada said, referring to the Group of Seven meeting in Canada over the weekend.

Technology issues were strong across the board following a 3.6 percent jump in the tech-heavy Nasdaq index over the previous two sessions.

Sony, Toshiba up sharply

Chip equipment maker Tokyo Electron was up 2.76 percent at 7450 yen, while consumer electronics leader Sony added 190 yen or 3.3 percent to 5900 yen.

Leading chipmaker and computer company Toshiba jumped 24 yen or 5.73 percent to 443 yen.

Banks, which have been the focus of investors' concerns because of their level of bad loans, were also firmer.

The world's biggest bank by assets, Mizuho Holdings, was up 3000 yen or 1.25 percent at 243,000 yen, after touching 257,000 yen earlier in the day.

Rival UFJ rose 1000 yen or 0.35 percent to 283,000 yen.

Mitsubishi Tokyo Financial Group, the No. 3 lender, put on 24,000 yen or 3 percent to 816,000 yen.

Bush is due to arrive on February 17 and will meet Prime Minister Junichiro Koizumi the following day.

The fate of Japan's battered financial system, the yen-dollar exchange rate and the prospects for the Japanese economy are thought to be high on their agenda.

Mobile phone giant NTT DoCoMo rose 50,000 yen or 3.684 percent to 1.41 million yen, while parent NTT added 10,000 yen or 2.56 percent to 400,000 yen.

Telco rivals KDDI and Japan Telecom were also stronger, up 5.9 percent and 3.1 percent respectively.