Asian markets up, Tokyo slips


Investors in Tokyo ignored positive economic news from the U.S.

HONG KONG, China -- Asian markets except Japan were mostly higher by midday Monday, buoyed by a strong Wall Street performance last week and hopes of a U.S.-led economic recovery.

Shares in Tokyo dropped as investors stayed cautious ahead of policy-setting meetings this week by the U.S. and Japanese central banks.

The benchmark Nikkei 225 average ended the morning down 105.26 points, or 0.90 percent, at 11,542.75, while the broader capital-weighted Topix fell 3.84 points, or 0.35 percent, to 1,093.40.

In other markets, Australia and South Korea were both higher on advances by blue chips, while Taiwan tech shares tracked Nasdaq's gains on Friday.

Hong Kong and Singapore were also firmer in early trade as sentiment firmed that the U.S. -- the world's largest economy and their biggest trading partner -- is on the road to economic recovery.

U.S. stocks gained Friday as news of a strong bounce in consumer sentiment and factory output added to a growing pile of evidence that a rebound is underway.

The Dow Jones industrial average rose 90.09 points, or 0.86 percent, to 10,607.23, while the Nasdaq composite index rose 14.16 points, or 0.76 percent to 1,868.30.

Policy board meetings

The Bank of Japan starts a two-day policy board meeting Tuesday, and the U.S. Federal Open Market Committee (FOMC) is to meet on the same day.

Japan's banking sector led the losers. Mizuho Holdings, the world's biggest bank by assets, tumbled 4.45 percent to 322,000, while UFJ Holdings fell 3.44 percent to 337,000 yen.

Despite a rise in U.S. tech shares, Advantest, Japan's leading manufacturer of semiconductor testing devices, slipped 1.6 percent to 10.460 yen.

Sony, the world's largest audio-visual electronics maker, lost 2.38 percent to 6,970 yen, while rival Kyocera declined 3.56 percent to 9,480 yen.

Nissan Motor bucked the trend and finished the morning up 2.58 percent to 913 yen after it said on Friday it received 25,000 orders for its new March subcompact in its first week.

Japan's leading carmaker Toyota Motor added 1.05 percent to 3,860 yen, while Honda slid 1.79 percent to 5.480 yen.

In Seoul, shares extended their sixth day of gains in early trade as investors chased monopoly Korea Electric Power (KEPCO). The power utility jumped 6.1 percent to 24,300 won, unfazed as a walkout by its unionized workers entered its fourth week.

Market heavyweight and leading chipmaker Samsung Electronics was marginally higher at 331,000 won, but rival Hynix Semiconductor eased 3.3 percent to 1610 won.

The main Kospi was up 1.45 percent at 872.86, while the over-the-counter Kosdaq added 1.98 percent to 91.12.

News higher

The Australian market was higher by midday, lifted by strength in media giant News Corp and a recovery in Australia's oversold banking stocks.

The benchmark S&P/ASX 200 index climbed 42.6 points, or 1.25 percent to 3,450.3. Index heavyweight News Corp jumped 4.6 percent to A$14.02.

National Australia Bank, the country's largest bank, added 1.6 percent to A$34.66, while Australia's largest fund manager, AMP Ltd gained 1.5 percent to A$19.54.

Resources giant BHP Billiton rose 1.6 percent to A$11.46, and Rio Tinto rose 1.5 percent to A$38.66 as hopes build for better commodity prices on rising global demand.

The sector also got a boost from OPEC Secretary General Ali Rodriguez's comments on Saturday that stringent oil output curbs would be retained throughout 2002 to support the global recovery.

In Taiwan, stocks were rangebound in early trade as investors took heart from gains in their U.S. counterparts.

The benchmark Taiex shares index dropped 5.52 points, or 0.09 percent, to 5,945.93.

Nanya Tech rose T$0.70, or 1.66 percent, to T$42.90, while rival Winbond Electronics gained T$0.10, or 0.38 percent, to T$26.30.

Taiwan tech shares often follow the lead of their U.S. counterparts, as many are key suppliers to American firms.

U.S. recovery

Singapore shares were firm in early trade. Electronics contract maker Venture Manufacturing rose 2.81 percent to S$18.30.

Overseas Union Trust (OUT) surged 12.9 percent to S$4.56, and Industrial & Commercial Bank (ICB) soared 7.8 percent to S$5.55 after parent United Overseas Bank (UOB) unveiled privatization moves on Friday.

UOB said it will effectively pay S$4.60 ($2.50) per shares for the OUT shares it does not own and delist the firm. It also said it will pay S$5.60 per shares for ICB.

But UOB shares were down 0.7 percent as S$14.30. All three stocks were suspended from trading on Friday.

In Hong Kong, stocks were firm in early trade due to gains in heavyweights HSBC Holdings and China Mobile.

The Hang Seng Index was up 52.52 points, or 0.47 percent, at 11,262.77.

Banking giant HSBC rose 0.54 percent at HK$92.75 as investors hope it will benefit from a global economic rebound.

China Mobile, which reports earnings later Monday, was up 1.6 percent to HK$25.35.

China Mobile was 1.4 percent higher at HK$25.30 ahead of its 2001 results.