Asia gains on Greenspan comments


Greenspan said Japan is showing signs of stability on the back of an improving U.S. economy

HONG KONG, China -- Asian markets gained ground by midday Thursday following upbeat comments from U.S. Federal Reserve Chairman Alan Greenspan and optimism over corporate earnings.

In Tokyo, shares erased opening losses to finish the morning session higher.

The benchmark Nikkei average was up 52.92 points, or 0.46 percent, to 11,596.63, while the broader Topix index firmed 7.21 points, or 0.66 percent, to 1,096.81.

In other markets, South Korea, Australia, Singapore and Hong Kong were all higher on brighter propsects in the U.S.

Taiwan rose after banks announced plans to sell non-performing loans.

Export-related shares in Asia such as tech and carmakers got a boost, after Greenspan said on Wednesday that the U.S. economy is on the road to recovery.

He also signalled that no U.S. interest rate rise is imminent.

Despite his upbeat comments, Wall Street stocks fell Wednesday as disappointing earnings from Boeing and Pfizer overshadowed an upbeat forecast from Intel Corp.

The blue-chip Dow Jones industrial average shed nearly one percent and the tech-laced Nasdaq Composite eased 0.34 percent.

Techs, autos higher

In Japan tech shares also got a lift after IBM said it expects its 2002 earnings and revenues to meet forecasts.

High-tech bellwether Sony gained 0.71 percent, to 7,100 yen.

Nissan Motor, Japan's third biggest automaker rose 1.78 percent to 973 yen, while Toyota Motor added 0.83 percent to 3,650 yen. Mazda was up 1.6 percent to 377 yen.

In the banking sector, Mizuho Holdings eased 0.71 percent to 281,000 yen, but UFJ Holdings gained 0.64 percent to 314,000 yen. MTFG was up 0.69 percent and SMBC added 0.71 percent.

Japan's leading mobile phone carrier NTT DoCoMo rose 1.8 percent to 340,000 yen following confirmation Wednesday of its i-mode licensing deal with a French wireless telco. Parent NTT rose 1.43 percent to 498,000 yen.

In South Korea, carmaker Hyundai Motor helped take the benchmark Kospi up 0.42 percent to another record high of 934.43, while the over-the-counter Kosdaq was up 0.31 percent at 87.70.

Hyundai Motor rose 3.1 percent to a new lifetime high of 51,300 won on rising sales.

But chip giant Samsung Electronics, which plans to announce Q1 results on Friday, dipped 1.23 percent to 401,000 won.

KT Corp, South Korea's largest fixed-line carrier, eased 1.1 percent to 61,800 won.

Low-end PC maker Trigem Computer jumped 4.7 percent to 13,400 won on expectations of a recovery in demand.

Cautious outlook

Australian stocks firmed but were off early highs as investors focused mainly on Greenspan's cautious comments about the U.S. economy.

The benchmark S&P/ASX 200 index was 4.3 points, or 0.13 percent, firmer at 3405.6.

Media giant News Corp firmed five cents to A$12.76, while the country's biggest bank National Australia Bank rose three cents to A$33.78.

Mining giant Rio Tinto advanced 14 cents to A$37.26 ahead of its annual shareholders meeting.

In Taiwan, stocks nearly rose one percent, led by banking shares after two major banks announced plans to sell more than T$80 billion in non-performing loans this year.

The benchmark Taiex rose 0.89 percent, or 57.16 points, to 6,447.84.

Chang Hwa Commercial Bank advanced 5.91 percent to T$19.70, while Hua Nan Financial Holdings rose limit-up to T$23.80.

In Singapore, gains by blue chips took the benchmark Straits Times Index up 0.15 percent, or 2.58 points, at 1,773.92.

Singapore Press Holdings climbed 1.24 percent to S$24.50. Banking leader DBS Group was up 0.71 percent to S$14.10.

In Hong Kong, stocks were flat early, as investors stayed on the sidelines after hefty gains in the previous session.

The Hang Seng Index was up 0.10 percent, or 10.62 points, at 11,101.20. Banking leader HSBC firmed slightly, as did China Mobile. Most utility stocks eased

China's largest computer maker Legend Group rose 1.53 percent at HK$4.345, after IBM said it 2002 earnings and revenues were on track.