Tokyo leads Asia to higher close


Shares of Tokyo banks slumped following the release of a report on their bad loans

HONG KONG, China -- Japan and Korea led Asian markets to a higher close Monday, bolstered by buying of tech issues and expectations of good corporate earnings.

South Korea did best with a gain of more than 2 percent, while Tokyo's market ended the day 1.6 percent higher.

But Japanese banks slumped after an official report on their bad loans dampened confidence.

The key Nikkei average rose 174.32 points, or 1.59 percent, to 11,137.30, while the broader capital-weighted Topix added 9.22 points, or 0.87 percent, to 1065.51.

In other markets, Australia and New Zealand were higher on the back of solid corporate earnings. Nasdaq's gains in the U.S. last week kept Taiwan's tech-heavy index in the black.

Weaker property shares in Singapore weighed on the Straits Times index, but Hong Kong's Hang Seng index clung to a small gain after property shares rose on the back of strong apartment sales.

On Friday, the Dow Jones industrial average added 0.14 percent to 10,190.82, while the tech-heavy Nasdaq climbed 1.79 percent to 1756.19.

Banks down

In Tokyo, Japan's dominant mobile phone operator NTT DoCoMo rose 1.27 percent to 320,000 yen, parent NTT put on 1.5 percent to 466,000 yen and consumer electronics leader Sony Corp added 1.19 percent to 6790 yen.

But in the banking sector, Mizuho Holdings slumped 4.68 percent to 285,000 yen, UFJ Holdings lost 4.42 percent to 303,000 yen and SMBC eased 1.6 percent to 550 yen.

The banks dropped after the Financial Services Agency (FSA) released a report Friday that said Japan's banks have bad debts of about 37 trillion yen, and will now write off 7.8 trillion yen for the latest business year.

In South Korea, shares rose on expectations of strong earnings by memory chip giant Samsung Electronics and Hyundai Motor. That came after Hynix Semiconductor reported it was back in the black in its March quarter results.

The benchmark Kospi rosed 18.59 points or 2.12 percent to 894.28.

Samsung jumped 4.34 percent to 385,000 won, while Hyundai, South Korea's top automaker, climbed 6.13 percent to 45,000 won.

But steel giant POSCO eased 0.35 percent to 143,500 won after it gained almost 3.0 percent on Friday.

Retail up

In Australia, the benchmark S&P/ASX200 index ended 13.6 points, or 0.41 percent higher, at 3368.1.

Australia's biggest grocer, Woolworths, reported a 17.4 percent jump in its third quarter sales to A$5.69 billion and raised its earnings per shares forecast range to between 48 and 50 cents for 2001-02.

Its rival Coles Myer expects to post 20 percent profit growth this year.

Woolworths shares closed 1.97 percent up at A$12.92, equalling its March 13 record high, while Coles Myer rose 1.83 percent to A$8.33.

In the banking sector, National Australia Bank added 1.63 percent to A$33.60 and ANZ Banking Corp climbed 1.62 percent to A$18.24.

But miners eased. BHP Billiton slipped 0.43 percent to A$11.59, while Rio Tinto lost 0.27 percent to A$37.15, weighed down by weaker oil and metals prices.

Tech buying

In Taiwan, the benchmark Taiex rose 0.22 percent, or 13.41 points, to 6196.00.

Au Optronics, the world's third largest maker of large display panels, rose the daily seven percent limit to T$57.50 after being added to the Morgan Stanley Capital International standard index.

Chip foundry TSMC eased 0.54 percent to T$91.50. Rival UMC dropped 0.93 percent to T$53.

In Singapore, possible changes to the government-run pension scheme put pressure on property stocks.

The bellwether Straits Times Index eased slightly, down 5.66 points or 0.32 percent to 1746.09 near the close. Most blue-chips, including banking leader DBS and OCBC, were down. SingTel was steady.

In Hong Kong, the Hang Seng index was up 0.16 percent, or 17.5 points, at 10,727.98.

Leading property developer Sun Hung Kai Properties was down 0.42 percent at HK$58.75, while rival Henderson Land Development rose 0.31 percent to HK$31.90.

Banking leader HSBC eased slightly to HK$88. China Mobile rose 20 cents or 0.87 percent to HK$23.15.