Nikkei up, Asian markets mixed


Chip shares surged after Morgan Stanley upgraded its rating on Intel Corp to 'strong buy' from 'outperform'

HONG KONG, China -- Asian markets were mixed by midday Wednesday as the effects of profit taking were capped by upbeat forecasts on semiconductor shares.

In Tokyo, the market recovered from the previous session's dip to close firmer by midday. The benchmark Nikkei 225 was up 168.01 points or 1.48 percent to 11,516.46, while the broader capital-weighted Topix put on 5.46 points or half a percent to 1080.77.

In other markets, Australia, Singapore and Taiwan were higher, lifted by an advanced in index heavyweights, but South Korean shares were dragged down by losses in steel maker Pohang Iron and Steel Co (POSCO).

Steel makers came under pressure after the United States slapped tariffs of up to 30 percent on a range of steel imports to throw a lifeline to the struggling domestic industry.

Hong Kong was also flat to slightly weaker heading for the midday break, as the market awaited the government's annual budget address.

Asian chipmakers rose after Morgan Stanley lifted its investment rating on leading computer chipmaker Intel Corp to 'strong buy' from 'outperform' on strong business conditions in the semiconductor sector.

Japan's market got a boost after it tightened the rules on stock short selling on Wednesday.

It now allows short sales only at a price higher than the most recently traded price, aiming to curb speculative sales ahead of the critical annual book closing on March 31.

The market got a further lift from a surge in electronics and exporters on hopes the United States, its biggest trading partner, is on the way out of a recession.

Consumer electronics giant Sony Corp jumped 3.49 percent to 6,820 yen.

Japan's second-largest automaker Honda Motor rose 2.46 percent to 5,830 yen. Market leader Toyota Motor rose 3.00 percent at 3,780 yen.

In contrast, Japan's largest steel maker Nippon Steel Corp, shed 4.88 percent to 195 yen.

Banks were also surprisingly lower. Mizuho Holdings dropped 2.6 percent at 300,000 yen, while Sumitomo Mitsui fell 1.03 percent at 578 yen. UFJ Holdings lost 2.05 percent at 335,000.

U.S. levy

South Korean shares zigzagged in and out of positive territory, with losses in steel maker POSCO countered by a rise in Hynix Semiconductor.

The Kospi was down 0.13 percent to 840.83, while the over-the-counter Kosdaq was off 0.01 percent at 83.61.

POSCO slumped 4.86 percent to 137,000 won.

Hynix Semiconductor, the world's third largest memory chip company, rose 8.2 percent to 2,120 won on positive operating earnings.

Memory chip giant Samsung Electronics Co was up 0.55 percent to 363,000 won.

In Australia, stocks were marginally higher at midday as strength in media giant News Corp offset weaker banks and resources stocks.

The benchmark S&P/ASX 200 index was up 5.1 points, or 0.15 percent, at 3,440.7.

Rupert Murdoch's News Corp rose 34 cents, or 2.5 percent, to A$13.70 after its American Depositary Receipts rose 3.5 percent to $28.36. U.S. investment house Morgan Stanley upgraded News to a strong buy.

Telstra Corp, Australia's leading mobile phone carrier, was up eight cents, or 1.5 percent, at A$5.42 after posting a half-year net profit of A$2.098 billion.

Anglo-Australian mining giant Rio Tinto dropped 53 cents, or 1.3 percent, at A$40.23.

U.S. tariffs on steel imports helped push BHP Billiton down 12 cents, or one percent, to A$11.85.

Banks also were lower for a second straight day, as investors switched from defensive issues to cyclical plays.

Chips up

Taiwan shares moved higher in early trade powered by a surge in chip shares.

The Taiex was up 44.26 points, or 0.74 percent at 6,002.01.

Among the most active Taiwanese stocks, memory chipmaker Nanya advanced T$1.90, or 4.03 percent to T$49 as its February sales rose 184 percent year-on-year to T42.61 billion.

Rival Winbond Electronics was up T$0.60, or 2.13 percent, at T$28.80.

Index heavyweight Taiwan Semiconductor Manufacturing added T$1.50m or 1.65 percent, to T$92.50.

On Tuesday the company unveiled a joint project with Philips Electronics and STMicroelectronics to speed the development of chip computer technology.

But China Steel declined T$0.50, or 2.81 percent, to T$17.30 on the U.S. tariffs, coupled with weak February sales.

In Singapore, shares were weaker in early trade, dragged down by retreating blue chips.

The Straits Times Index was down 0.41 percent, or 7.41 points, at 1,798.88.

DBS Group and OCBC Bank both dipped 10 cents to S$14.19 and S$13.30, and United Overseas Bank slipped 20 cents to S$14.50.

Singapore Telecommunications fell two cents to S$1.64.

But Chartered Semiconductor Manufacturing rose 2.1 percent to S$4.88 after ING Barings upgraded Chartered to a buy on a view that the industry downturn had bottomed out.

In Hong Kong, stocks were little changed in early trade ahead of the government's 2002-03 budget address.

Analysts said the budget could include minor tax hikes to help ease the territory's swelling budget deficit.

The Hang Seng Index was down 20 points or 0.20 percent at 10,969 heading towards midday.

Leading the market down was banking group HSBC, which was off 0.55 percent at HK$91, after succumbing to profit taking.