Tokyo down, rest of Asia up by midday


Wall Street's surge failed to lift Tokyo shares. They dropped on fears an economic package would not help banks

HONG KONG, China -- Most Asian markets were higher by midday Tuesday, boosted by Wall Street's overnight surge. But Tokyo's Nikkei was the exception, dropping after a retreat in banking stocks.

The benchmark Nikkei 225 stock average lost 28.28 points, or 0.27 percent, to 10,268.19 at the end of morning, but the broader Topix index rose 0.45 points or 0.05 percent at 987.57.

Japanese big banks fell on concerns the government's anti-deflation package due Wednesday will not cover the highly anticipated infusion of public funds into ailing lenders.

But Seoul, Australia, Taiwan, Singapore and Hong Kong were all higher. Technology shares advanced on the back of Wall Street's impressive performance.

The Dow Jones industrial average rose above the key 10,000 level, jumping 177.56 points or 1.78 percent to 10,145.71. The tech-laden Nasdaq surged 45.34 points or 2.63 percent to 1,769.88.

Robust U.S. home sales bolstered hopes for an economic rebound and offset worries about corporate accounting. A wide range of U.S. companies offered upbeat corporate forecasts.

Banks retreat

Japan's opening rally was short-lived Tuesday, with traders reluctant to take large positions ahead of the release of a government package of measures aimed at fighting deflation and facilitating banks' disposal of bad loans.

Recent domestic media reports suggested the package would unlikely include any aggressive steps on the use of public funds for troubled lenders, pulling down the banking sector.

Mizuho Holdings Inc, the world's biggest bank by assets, fell 3.38 percent at 229,000. Sumitomo Mitsui dropped 2.06 percent at 476 yen, while UFJ Holdings lost 0.35 percent at 287,000 yen.

In the technology sector, consumer electronics giant Sony Corp gained 0.48 percent at 6,230 yen.

Japan's top mobile phone operator, NTT DoCoMo Inc, rose 2.16 percent to 1.42 million yen.

Leading Japanese carmaker Toyota Motor dropped 1.43 percent to 3,440 yen, while Honda Motor rose one percent to 5,050 yen.

Union strike

South Korean shares were higher early as investors shrugged off a work stoppage staged by unions at Korea Electric Corp and railways.

The benchmark Kospi rose two percent to 807.28, while the over-the-counter Kosdaq gained 0.82 percent to 77.74.

Power monopoly KEPCO was up 1.6 percent to 22,300 won, despite the strike entering its second day.

Airlines benefited from the rail strike. The promise of busier air routes saw Korean Air rise 4.3 percent to 15,850 won and Asiana Airlines gain 1.8 percent to 4,070 won.

Hyundai Motor, Korea's largest automaker, rose four percent at 35,000 won ahead of a vote by its unions about whether or not to join the strike.

Chipmakers Samsung Electronics and Hynix Semiconductor gained ground after U.S. tech shares rose, including a 5.85 percent jump on the Philadelphia Stock Exchange's semiconductor sub-index.

Samsung, the world's largest memory chipmaker, was up 0.75 percent to 268,000 won, while state-run Korea Telecom firmed 2.61 percent to 55,100 won.

Upbeat forecasts

In Australia, media giant News Corp rallied 2.5 percent to A$12.58 as investors took heart from stronger-than-expected economic data in the United States and upbeat forecasts from other U.S. companies.

That helped push Australia's benchmark S&P/ASX 200 index up 25.5 points or 0.8 percent to 3,448.

The banking sector was also mostly stronger, although Westpac bucked the trend, dipping 1.6 percent to A$16.60.

Big resources issues were also stronger. BHP Billiton rose 1.5 percent to A$11.73. But WMC fell 2.5 percent to A$9.32 after reporting a 2001 full-year profit of A$401.7 million, down from A$765 million a year earlier.

Shares in Taiwan also rose in early trade on a technical rebound after falling to five-week lows in the previous session.

The benchmark Taiex index rose 1.99 percent or 109.43 points at 5,620.14.

Among active stocks, AU Optronics, Taiwan's largest maker of LCD panels, rose the daily seven percent limit to T$57.50 on rising sales. Rival Chungwa Picture Tubes was also limit up at T$42.10.

Subdued sentiment

Singapore shares opened higher on a mild technical rebound, but sentiment remained subdued on domestic corporate earnings.

The bellwether Straits Times index was 1.65 percent or 27.47 points higher at 1,695.14.

Sound card giant Creative Technology surged 2.78 percent to S$22.20, while contract maker Venture Manufacturing rose 2.24 percent to S$13.70.

DBS Group, Southeast Asia's largest bank, was up 30 cents or 2.26 percent at S$13.60.

United Overseas Bank rose 20 cents or 1.49 percent to S$13.60, while OCBC gained 30 cents or 2.24 percent to S$12.70.

In Hong Kong, share prices rose percent in early trade on optimism over the near term prospects for the US economy, dealers said.

The key Hang Seng index was up 85.23 points or 0.8 percent at 10,581 near midday. Blue chips such as HSBC, China Mobile, Hutchison Whampoa and China Unicom were all higher.