Asia higher on Greenspan comments

HONG KONG, China -- Most Asian markets were higher by midday Thursday, lifted by U.S. Federal Reserve Chairman Alan Greenspan's cautious optimism of a U.S. economic recovery.

In Tokyo, shares jumped nearly two percent as investors focused on the government tightening regulations about short selling. Australia and Singapore were also higher.

But Greenspan's cautious tone turned off investors in Hong Kong, while South Korea inched down as investors left the market oversold.

The benchmark Nikkei average ended the morning up 1.95 percent at 10.779.21, while the broader capital-weighted Topix index added 1.97 percent at 1,027.03.

Industrial output down

Investors ignored an unexpected fall in industrial output and focused on an anti-deflation package the government announced Wednesday. That included tighter regulations on short selling.

Daiwa Bank, among the weakest of Japan's banks, soared 16.67 percent to 98 yen.

Mizuho Bank rose 4.9 percent at 257,000 yen; Sumitomo Mitsui added 3.05 percent at 506 yen, while UFJ Holdings gained 3.64 percent at 285,000 yen.

In the electronics sector Kyocera rose 2.14 percent at 8,110 yen, while electronics giant Sony added 0.32 percent at 6,320 yen.

In the auto sector, Honda Motor put on 3.98 percent to 5,480 yen, but No.1 maker Toyota Motor trailed behind, up 1.77 percent at 3,450 yen.

Blue chips down

South Korean shares inched higher by midday, after initially being dragged lower by profit-taking among blue chip issues.

The Kospi spent most of the morning in the red, but gained 1.2 points or 0.16 percent to 823.42 in early afternoon trade.

Samsung Electronics, the world's top memory chipmaker, dropped 1.43 percent to 345,000 won, hurt by the company's conservative sales forecast.

Samsung said at its annual shareholders' meeting its 2002 sales would fall to 31.4 trillion won ($23.84 billion) from 32 trillion won last year.

SK Telecom, South Korea's top mobile carrier, eased 1.12 percent to 264,000 won.

Steel giant Pohang Iron and Steel shed 1.33 percent to 148,500 won.

Shares of power monopoly Korea Electric Power Corp broke its winning streak to fall 2.6 percent to 22,050 won as the strike entered it fourth day.

The Australian stock market edged slightly higher by early afternoon, helped by key banking and mining stocks.

The benchmark S&P/ASX 200 index was up 7.5 points or 0.2 percent to 3,420.7 at midday, boosted by a recovery in News Corp.

The media giant bounced back from a low of A$12.12 to be up five cents at A$12.26.

An improvement in base metal prices overnight pushed shares in diversified resources giant BHP Billiton up 0.7 percent to A$11.80, while rival Rio Tinto added four cents to A$40.00.

Major banks rose, led by Commonwealth Bank, which added 1.3 percent to A$32.30. Rival National Australia Bank added 0.9 percent to A$35.70. Westpac Bank was also up 1.5 percent to A$16.89.

In Singapore, shares were slightly higher in early trade after fresh signs of an economic recovery gave a boost to sentiment.

The Straits Times Index was 0.09 percent higher at 1,703.83

Despite a two percent year-on-year contraction in its 2001 GDP, the city-state was able to stir greater confidence in a recovery by raising its growth forecast to 1.0 to 3.0 percent, up from minus 2.0 to plus 2.0 percent.

The Ministry of Trade and Industry also said that while the economy shrank 6.6 percent for the fourth quarter year-on-year, it grew 5.6 percent on an annualized quarter-on-quarter basis.

Hong Kong down

In Hong Kong, stocks were off sharply in early trade after Greenspan's cautious comments about a U.S. recovery dampened market sentiment.

The benchmark Hang Seng Index was down 1.72 percent at 10.465 near midday.

Property groups were also lower on fears the government may raise taxes to fund a ballooning budget deficit.

Hysan Development, Henderson Land, and Sino Land were all down between 3.14 percent and 4.5 percent.

Top China PC maker Legend Holdings was down 1.52 percent at HK$3.250. Hong Kong's flagship carrier dropped 0.85 percent to HK$11.60

The Taiwan stock market is closed on Thursday for the Peace Memorial Day holiday. It will resume trading on Friday.

The Taiex ended 3.57 percent higher at 5,696.11 on Wednesday, buoyed by advancing technology shares.

South Korea will be closed on Friday for the Independence Day holiday.