Asian stocks end up on choppy day


Car stocks rose on Friday in Korea, in a week where they posted strong sales and bankrupt Daewoo unveiled its new Kalos

HONG KONG, China (CNN) -- On a choppy day of trade, most Asian markets made it into the black by the close Friday.

South Korean stocks spent most of the day trying to work their way back from chip-induced losses. Seoul's main index, the Kospi, ended down 0.37 percent at 856.72.

But the Kosdaq, with its emphasis on smaller shares, climbed into positive territory, ending up 0.22 percent at 76.48.

Many markets lacked strong direction, with Japan closed for a holiday.

That sense of directionless for Asia was compounded by a mixed day on Wall Street on Thursday, when Nasdaq dropped sharply but the Dow Jones industrial average rose.

Australia struggles against Telstra headwind

The market in Japan is closed Friday for a holiday, Constitution Day, and will be closed again on Monday, for Children's Day. It will resume trading Tuesday.

The stock exchanges in China, in Shanghai and Shenzhen, are both closed for the week-long Labor Day holidays. They restart on May 8.


Eyes in Asia are turning to the World Cup, due to start this month in Seoul and continue through June in Korea and Japan

In Australia, the main index, the S&P/ASX 200, ended up 0.11 percent at 3,366.0.

Sydney stocks spent most the day fighting a telecom induced headwind.

Analysts trimmed their forecasts for Telstra following disappointing mobile-phone growth and a 1.1 percent fall in third quarter revenues.

Telstra staged a comeback after approaching a four-year low. It closed 1.88 percent lower at A$4.71, having been down 2.5 percent earlier in the day.

Australia's largest retailer, Coles Myer, jumped 2.9 percent to A$7.76 as Australia posted strong retail sales figures for March.

New Zealand's Top 40 index spent most of the day in the black. But it ended at a loss, down 0.07 percent at 2,068.47.

Telecom New Zealand sold off in late trade, finishing down 1.2 percent at NZ$4.78 in sympathy with Telstra.

Property off in Hong Kong but Hang Seng up

Hong Kong's Hang Seng index closed up 0.15 percent at 11,797.22. Its stable of steady banking and property stocks have garnered investor interest of late.

But the Hang Seng property index dropped 0.47 percent as some stock holders took money off the table.

Citic Pacific jumped 5.5 percent to HK$17.25, as investors figured on an arbitrage play. Citic owns 25.5 percent of airline Cathay Pacific.

Cathay stock was lackluster, though, closing 1.1 percent lower at HK$13.45. It has already factored in optimism over lower oil prices and a rebound in travel.

South Korean and Taiwanese stocks were the focus of selling attention after Nasdaq's fall the day before.

In Seoul, the Kospi took the chip hit, with largest component Samsung Electronics falling 2.5 percent to 370,000 won.

Hynix Semiconductor fell 1.2 percent to 805 won, after initially rising. Investors are now mulling the company's position on its own after Micron Technology said it was finished trying to buy Hynix.

Phone company SK Telecom was off 2 percent at 246,500 won.

Car stocks gain in Korea

But car stocks Hyundai Motor, up 5.7 percent to 52,300 won, and Kia, up 6 percent to 15,050 won, climbed after reporting strong sales for April.

Taiwan's Taiex ended 0.72 percent up at 5,910.32. But the market oscillated and lacked direction after the prior day's selloff on Nasdaq.

In Singapore, investors were buying into a bullish forecast from the city-state's budget.

The Straits Times index is up 0.28 percent at 1,745.23 in late afternoon trade on Friday.

But market watchers said there were few surprises in the budget, which raises the island's goods and services tax to five percent from three percent.

Singapore confirmed, however, that it will cut its corporate and highest rate of personal tax to 20 percent by the 2004 budget year.

The market has already priced in the benefits of a tax cut. But Singapore is cutting taxes at a time regional business competitors such as Hong Kong are mulling raising taxes.