Nikkei, Asian markets end higher


South Korea's POSCO threatened to file a complaint with the WTO over a US decision to impose tariffs on steel imports

HONG KONG, China -- Asian markets finished higher Wednesday, lifted by chip shares and major exporters. These rose on optimism over an impending economic recovery in the U.S. and a rebound in the semiconductor sector.

In Tokyo, tougher short-selling rules helped the benchmark Nikkei to a small rise of 10 points. The rules capped investors' urge to take profits from the market's recent hefty gains.

Elsewhere in the region, South Korea, Australia and Taiwan were all higher on advancing chip shares and positive earnings results. Hong Kong also ended higher after the budget address began.

But Singapore continued to slacken on heavy selling.

In Tokyo, the benchmark Nikkei average ended up 10.08 points, or 0.09 percent, at 11,358.53, while the capital-weighted Topix index dropped 1.95 points, or 0.18 percent, to 1,073.36.

Toyota, Sony up

Major exporters such as Toyota Motor posted steep gains after a string of data suggested the U.S. economic is on the road to recovery.

Toyota, Japan's largest automaker, gained 2.45 percent to 3,760 yen, while electronics giant Sony Corp rose 4.4 percent to 6,880 yen.

After a huge run-up in recent trade, banks have started to ease, led down by Mizuho Holdings, the world's largest bank by assets.

Mizuho lost 5.84 percent to 290,000 yen, while Sumitomo Mitsui fell 3.6 percent to 563 yen. UFJ Holdings slumped 5.85 percent to 322,000 yen.

Steel makers also came under pressure after the United States on Tuesday slapped tariffs of up to 30 percent on a range of steel imports in an effort to protect its struggling domestic industry. Nippon Steel fell 4.39 percent to 196 yen.

Hynix up

In Seoul, shares closed a tad higher lifted by Hynix Semiconductor, which rose on positive operating profits and a plan to increase output.

The Kospi inched 0.13 percent higher to end at 843.06, while the over-the-counter Kosdaq added 0.62 percent to 84.14.

Hynix Semiconductor added 7.1 percent to 2,100 won, after it reported a return to operating profits in the first two months of this year. It lost $3.85 billion last year.

Dragging the market down was Pohang Iron and Steel Co, which dropped 2.78 percent to 140,000 won on the United States' decision to impose a levy on steel imports.

In Australia, stocks ended higher, buoyed by Telstra Corp's impressive interim profit and dividend.

The benchmark S&P/ASX 200 index closed up 15.6 points, or 0.45 percent, at 3,451.2.

Telstra, Australia's leading telco, gained 3.0 percent to end at a seven-week high of A$5.50 after its interim net profit of A$2.1 billion met market expectations.

Gains in media giant News Corp also helped push the main index higher.

News Corp jumped 44 cents, or 3.3 percent, at A$13.80 after U.S. investment house Morgan Stanley upgraded News Corp to a strong buy.

Anglo-Australian mining giant Rio Tinto dropped 2.4 percent to A$39.80.

BHP Billiton dropped nine cents, or 0.58 percent, to A$11.90, after the U.S. steel tariffs decision.

Chips shares up

Taiwan stocks ended at a 13-month high as heavy buying by foreign funds and consistent gains in U.S. semiconductor shares helped local microchip shares advance.

The benchmark Taiex share index added 139.82 points, or 2.35 percent, to 6,097.57.

Index heavyweight Taiwan Semiconductor Manufacturing Co helped lift the market higher with a 3.85 percent rise.

In Singapore, the main index weakened as blue chips slackened on profit taking.

But overall sentiment remained firm as technology shares continue to climb on hopes of a demand recovery.

The bellwether Straits Times Index was down 10 points, or 0.55 percent, at 1796 heading towards the close.

Computer peripherals maker Creative climbed four percent to S$23.40, while electronics contract maker Venture added 2.26 percent to S$18.10.

Chartered Semiconductor Manufacturing rose 2.09 percent to S$4.88.

In Hong Kong, stocks were virtually unchanged after the government's budget address.

Analysts expected the 2002-03 budget to include small tax hikes to ease the territory's swelling budget deficit.

The Hang Seng Index closed up 17.16 points or 0.16 percent at 11,003.

Global bank HSBC Holdings continued to weigh on the market after it lost some of its gains to heavy selling. HSBC lost 0.55 percent to HK$91.

Cathay Pacific, Asia's fourth largest airline, dropped 2.1 percent to HK$11.65 as it reported full year earnings.