Tokyo ends higher on tougher rules


Analysts said anticipation that Japan's central bank may further ease credit helped Tokyo shares to finish higher

HONG KONG, China -- Profit-taking pushed most Asian markets to a weaker close Thursday, but tougher regulations to curb short selling helped Tokyo into the black.

It was the second day that the Japanese market closed higher, lifted by the government's stance on regulating short selling.

In other markets, Australia and Hong Kong were weaker as they braced for the release of corporate results. Seoul was also down slightly, while Singapore moved higher on hopes of an imminent economic recovery.

The Taiwan stock market was closed Thursday for the Peace Memorial Day holiday, and will resume trading on Friday.

In Tokyo, the benchmark Nikkei 225 average ended up 0.14 percent or 14.74 points at 10.587.83, while the broader Topix index gained 0.66 percent or 6.62 points to 1,013.80.

The government's tougher stance on regulating short-selling, underscored by the punishment of four foreign brokers on Tuesday, spurred short-covering in blue-chips such as PC and chipmaker NEC Corp, traders said.

NEC soared 8.72 percent to 973 yen.

Consumer electronics giant Sony Corp, however, lost 3.49 percent to 6,080 yen after it announced it would turn ailing group firm Aiwa Co into a wholly owned subsidiary.

Its rival Kyocera Corp gained 1.01 percent at 8,020 yen.

Mizuho Holdings, the world's largest bank in terms of assets, finished 3.27 percent higher, while Sumitomo Mitsui gained 1.02 percent at 496 yen.

In the auto sector, Japan's leading carmaker Toyo Motor recovered early losses to end 0.88 percent higher at 3,420 yen, while rival Honda Motor rose 1.52 percent at 5,350 yen.

Samsung profit

South Korean shares closed slightly lower as investors pocketed profits following the market's fresh 19-month highs.

The Kospi index ended down 0.26 percent at 819.99 points, while the over-the-counter Kosdaq closed up 1.51 percent at 78.71.

Top memory chipmaker Samsung Electronics slipped two percent to 343,000 won, after the company released a conservative sales forecast.

Samsung said its 2002 net profit would top last year's $2.2 billion but a strong Korean won would likely reduce sales.

Chip shares were also hit by news that sales of microchip-making equipment tumbled 41 percent last year.

Hynix Semiconductor, the world's third-largest memory chipmaker, eased 3.3 percent to 1,615 won.

South Korea's top mobile carrier, SK Telecom, shed 2.62 percent to 260,000 won.

Pohang Iron and Steel Co Ltd, the world's largest steel maker, dropped 2.66 percent to 146,000 won.

State-run power monopoly Korea Electric Power Corp slipped three percent to 21,950 won as a strike by unionized power workers stretches to a fourth day.

Australia ends flat

The Australian stock market ended flat as strength in blue chips offset worries over latest earnings results.

The benchmark S&P/ASX 200 index ended up 1.2 points or 0.04 percent to 3,414.3 points, largely helped by strength in major banks.

National Australia Bank rose 1.1 percent to A$13.30, while Commonwealth Bank gained 1.5 percent to A$32.36.

Their gains buffered losses by index heavyweights, including media giant News corp. News ended the day 0.9 percent lower at A$12.20.

Resource majors BHP Billiton and Rio Tinto also held most of their gains, spurred by an improvement in base metal prices overnight. They closed up 0.6 and 0.1 percent to A$11.79 and $40.00 respectively.

But shares in leading Australia airline Qantas lost some of Wednesday's gains. It slipped 2 percent to A$4.48 as investors considered the likely fallout from the collapse of negotiations to resurrect former rival Ansett.

Positive data

Singapore shares crawled higher on greater confidence the city-state is on its way out of a recession.

The Straits Times index was up 0.3 percent or 15.35 points at 1,707 near the close.

Banks were in focus after OCBC, the smallest of Singapore's three domestic lenders, reported a 2001 net profit below market expectations due to higher provisions.

OCBC was steady at S$12.70. On Wednesday, OCBC posted a 6.5 percent fall in 2001 net profit, but analysts were looking for a four percent rise.

DBS group was also unchanged at S$13.70, while United Overseas Bank held onto its 20-cent gain at S$14.00

Singapore Telecommunications was up four cents at S$1.62.

Shares in Hong Kong were down on concerns the government may raise taxes and real estate rates to offset a ballooning budget deficit.

The benchmark Hang Seng Index slipped 1.56 percent to 10.482.55.

Sino Land shed 4.5 percent to HK$2.65. Henderson Land and Sun Hung Kai Properties lost 4.15 percent to HK$30 and 3.49 percent to HK$55.25, respectively.

Investors were also reluctant to participate in the market ahead of the release of earning results by companies, including HSBC and Cathay Pacific.