Tech stocks undeterred by bomb scare


Tech stocks led the way as the Nikkei fired ahead 1.82 percent, with earnings optimism driving the market higher

Staff and wire reports

TOKYO, Japan -- Asian markets finished in the black for the week's first day of trade, despite Tokyo trading being disrupted by a bomb scare.

Japanese stocks got stronger as Monday wore on, benefiting from optimism about technology earnings from companies such as NEC, Sony and Toshiba.

Japan's Nikkei was the big gainer of the day. The tech-driven index ended up 1.82 percent at 11,721.64. The broader Topix index finished with a rise of 1.25 percent, bringing the benchmark to 1,105.91 at the bell.

Australia and New Zealand also finished with modest rises, and Taiwan set a new 19-month high.

But the rally lagged through Asia as Monday wore on. After starting in the plus column, stocks in South Korea, Singapore and Hong Kong all dipped to losses in the afternoon session.

Of the region's main indexes, Hong Kong's Hang Seng was the laggard, down 1.0 percent.

Nikkei the day's big gainer

In Japan, chipmakers and electronics stocks had the strongest running. Advantest, which makes machines to test chips, rose 3.8 percent to 10,100 yen.

It benefited from South Korea-based Samsung Electronics, which gave an upbeat forecast of capital spending when it released earnings on Friday.


Stocks like Advantest took heart from chipmaker Samsung's profits late last week in South Korea

In Tokyo, NEC closed up 3.2 percent at 1,032 yen, on a report it will post an operating profit of 75 billion yen for this business year, when it states earnings later this week.

The Nihon Keizai Shimbun stated over the weekend that NEC will post a loss of 57 billion for the year just ended in March. The company is also reportedly planning a cooperative effort with three other major Internet service providers.

Japan techs didn't show any knock-on effect from Nasdaq's 0.3 percent drop on Friday.

Mazda moves on reshuffle

The gains came as Tokyo trading was disrupted by a bomb scare. Authorities evacuated around 800 staffers from the Tokyo Stock Exchange and also searched for bombs at two other locations.

But authorities found no bombs, and electronic trading functioned as normal. The restrictions were lifted and staff returned around 30 minutes after the start of trade.

Mazda stock closed up 5.12 percent at 390 yen, as investors took a management reshuffling as signs the company's turnaround is on track.

President Mark Fields will return to the United States and Ford Motor Co.'s luxury-car division. Lewis Booth will take the reins at Mazda.

Sydney's S&P/ASX 200 index ended up 0.2 percent at 3,414.1 on light trading.

News Corp., the largest listing, ended up 3 percent at A$12.90, as investors looked to a rebound in the media company's main market, the United States.

On Wall Street, the Dow Jones industrial average closed Friday up 0.51 percent at 10,257.11.

Winemaker looks at vintage

Suspended stock Southcorp was back in action but dropped 1.6 percent to A$5.73, as analysts trim their estimates on the winemaker. On Friday, it predicted earnings of A$2.85 million for this year.

Foster's rose 0.6 percent to A$4.86, as it tries to allay fears its own profits will suffer after what Southcorp said was a poor 2000 for high-end wines.

In Wellington, the New Zealand Top 40 finished up 0.27 percent at 2,058.04. Telecom New Zealand was the main gainer, on a quiet day's trade in both Australia and New Zealand.

Hong Kong's Hang Seng index lost its way after morning gains, closing down 1.0 percent at 11,139.42.

The worst-performing major index in the world last year, it has been one of Asia's slower movers this year, too.

Airlines rebounding

Airline Cathay Pacific zoomed ahead 3.2 percent to HK$13.05. The carrier's stock hit their high for the year to date earlier in the day, as investors forecast it will gain from an economic rebound.

Natural-drug maker China Pharmaceutical Enterprise rose 4.1 percent to HK$1.01 after reporting encouraging profits.

Further south, Singapore Airlines was another airline-industry gainer, up 3.0 percent at S$13.90 in late trade.

That is helping the Singapore Straits Times index hold level. It was down 0.06 percent at 1,729.70 just before the close.

Hynix down ahead of deal

In South Korea, memory-chip maker put pen to paper with a preliminary deal to sell most of its operations to Micron Technology of the United States.

But the deal came after the close. The main Korean index, the Kospi, dropped 0.33 percent to 920.89.

Hynix fell 6.7 percent to 1,175 won. The deal, if it goes through, would edge Micron past Samsung Electronics to the top spot in the world memory chip industry (full story).

Samsung rose 3.5 percent to 410,000 won after reporting earnings on Friday.

The Korean market was hoping for a definitive deal between General Motors and bankrupt Daewoo Motor but the final signing was again put off.

In Taiwan, the Taiex index closed up 0.22 percent at 6,462.30. A last minute change of investor heart saw bank stocks resume their recent gains on promises of reform and tackling bad loans.

The Taiex now stands at its highest point in 19 months, dating back to September 2000.

Reuters contributed to this report.