Nikkei closes at 9-month high


Japan's economy is looking up, according to latest assessments

HONG KONG, China -- Asian markets closed higher Wednesday, with Japan finishing at levels not seen for nine months after the Bank of Japan upgraded its economic outlook.

South Korea was also up sharply, putting on more than 3 percent, while Taiwan's Taiex added 1.8 percent.

Markets in Australia, Hong Kong and Singapore made smaller gains.

In Japan, where the yen's strength against the U.S. dollar in recent days has been seen as a further indicator of economic recovery, the Ministry of Finance intervened in the foreign exchange market late in the day to weaken the yen.

That boosted exporters, helping the Nikkei climb 160.82 points or 1.36 percent to 11,961.98. That is the highest close for the index since August 2001.

The broader capital-weighted Topix index rose 13.31 points, or 1.19 percent, to 1,129.67.

In Tokyo, investors bought demand-oriented shares such as banks following a BOJ report indicating Japan's economy is looking up. South Korea also reported faster than expected growth in the first quarter of 2002.

U.S. markets slid for a second straight day Tuesday. The tech-laden Nasdaq composite index dropped 2.20 percent, while the Dow Jones industrial average fell 1.21 percent.

Financials up

The BOJ of Japan upgraded its economic assessment on Wednesday for a third straight month. Earlier, private sector research firms released figures suggesting the economy grew strongly in the March quarter.


Gold shares have become a safe haven for some investors

That boosted Tokyo financials. Mizuho Holdings surged 5.56 percent to 285,000 yen, and UFJ Holdings jumped 7.1 percent to 362,000 yen. MTFG was up 4.86 percent to 920,000 yen.

In Japan's troubled construction sector, Taisei jumped almost 12 percent to 300 yen.

Among exporters, top automaker Toyota Motor Corp eased 1.1 percent to 3460 yen, Honda Motor lost 1.58 percent to 5590 yen and Nissan lost 2.2 percent to 968 yen.

Consumer electronics giant Sony Corp. added 1.11 percent to 7270 yen, while camera maker Canon dropped 2.19 percent to 4920 yen after going as low as 4820 yen.

Among telcos, No. 2 player KDDI was up 4.66 percent to 404,000 yen. NTT rose 2.66 percent to 578,000 yen.

In South Korea, gains in index heavyweight Samsung Electronics gave the market strong support.

Chipmaker Samsung rose 3.93 percent to 370,000 won, helping push the main Kospi up 3.04 percent to 863.06. Mobile telecom leader SK Telecom put on 3.14 percent to 279,500 won and steel giant Posco jumped 2.56 percent to 140,000 won.

Gold up

In Australia, the market continued to draw strength from gold. The benchmark S&P/ASX 200 index rose 12.9 points, or 0.4 percent, to 3,389.8. Media giant and market heavyweight News Corp.closed 1.71 percent higher at A$13.67.

BHP Billiton and Rio Tinto eased, but gold stocks Newcrest Mining, Aurion Gold and Lihir Gold strengthened.

Banks were higher with ANZ Bank up almost 1 percent. Patrick Corp was again stronger, putting on 3.8 percent to A$16.76 after going as high as A$16.89.

In Taiwan, the Taiex was down in early trade, but recovered to close 1.81 percent higher at 5541.64.

Taiwan Semiconductor Manufacturing Co, the world largest chip foundry, rose 1.73 percent to T$88.00. Rival UMC was up 2.16 percent to T$47.30. Formosa Plastic surged 5.8 percent to T$41.70.

In Singapore, the key Straits Times Index was up slightly to 1,732.05 near the close.

Singapore Airlines is down 0.7 percent at S$13.50. Banks DBS and UOB are steady.

In Hong Kong, the Hang Seng Index closed 0.36 percent higher at 11,795.20.

Property stock Sino Land was down 1.65 percent at HK$2.975, but Henderson Land added 1.1 percent to HK$35.80.