Asian stocks climb, break with U.S.


Cell-phone and chip stocks generally rose in Korea, with Taiwan rising on government buying

By staff and wire reports

HONG KONG, China -- Asian stocks rose solidly Wednesday, again breaking from the plunging U.S. markets.

Stocks rose virtually across the board, with the biggest gains in Japan, Singapore and Taiwan.

Australia and New Zealand were the main exceptions, with the Indonesian and Malaysian stock markets also showing losses in late afternoon.

In Tokyo, the market came back from initial losses to close solidly higher.

The Topix index of all Section 1 stocks rose 1.47 percent to 1,044.21.21. The tech-fueled Nikkei 225 index lifted 1.79 percent to 10,812.30.

On the currency front, the yen stands at 120.46 to the dollar in early European trade out of Paris.

Bank stocks shake off downgrade

Japanese bank stocks locked in further gains, with Mizuho Holdings up 5.2 percent to 285,000 yen.

The industry has taken a shot from this week's bullish tankan report. The bank subindex rose 3.65 percent.


The yen stands at 120.46 in early Europe trade out of Paris, easing pressure on exporters

Bank stocks showed little or no reaction to a downgrade of six institutions by rating agency Moody's Investors Service (full story).

Sumitomo Mitsui Banking Corp. climbed 4.8 percent to 629 yen. Both it and Mizuho, the largest bank in the world by assets, took a downgrade.

But traffic was not entirely one-way in Tokyo, particularly in technology. NTT DoCoMo fell 1.05 percent to 497,000 yen.

Computer and monitor maker NEC closed 0.49 percent lower. Reports state it is entering the second-hand computer market, as well as IBM Japan (full story).

Heavy fund buying in Korea

South Korea's Kospi index rose 0.96 percent to 753.36. Cell-phone service SK Telecom climbed 1.7 percent to 269,500 won.


Goldman Sachs cites Samsung and rival LG Electronics as two corporate winners out of the World Cup

The company has attracted heavy buying from overseas institutions so far this year. There was late fund buying again on Wednesday in Seoul.

LG Electronics fell 0.43 percent to 34,450 won despite word South Korea's second-largest electronics maker will offer its liquid-crystal screens in Japan (full story).

Rival Samsung Electronics climbed 0.15 percent to 338,000 won.

Taiwan stocks were up 1.06 percent, leaving the Taiex at 5,047.82 at the close.

Taiwan up on government funds

The market also rose on Tuesday and the source was the same. Government funds once again bought into the market outside the tech sector.

Au Optronics, which like LG makes flat screens, climbed 5.76 percent to T$29.40. But earlier in the day, it went "limit down" 7 percent.

TSMC fell 3.79 percent to T$63.50 after Nasdaq's decline overnight (full U.S. roundup).

Down Under, it was a tale of two central banks -- and two markets that fell.

Australia leaves rates alone

In Australia, the S&P/ASX 200 index closed down 0.82 percent at 3,185.9.

Rupert Murdoch's media giant News Corp. fell 4.4 percent to A$9.60, weighed down by U.S. markets that are still sinking on Enron and WorldCom shocks.

Gold stocks also tumbled, as bullion gold prices lose their glister. AurionGold ended down 3.1 percent at A$3.74.

But the Reserve Bank of Australia decided to leave interest rates alone. The cash rate stands at 4.75 percent in that country.

New Zealand's Top 40 closed down 0.32 percent at 2,062.86. Telecom New Zealand dropped 1.4 percent to NZ$5.01.

The Reserve Bank of New Zealand made the widely anticipated move of raising interest rates, taking the cash rate to 5.75 percent.

Property up in Hong Kong

Hong Kong's Hang Seng index closed up 0.83 percent at 10,579.19. Property stocks gave the market a burst.

Cheung Kong Holdings climbed 2.33 percent to HK$66.00. Sun Hung Kai Properties lifted 2.5 percent to HK$60.75.

Singapore stocks are up 1.65 percent heading towards the close.