Asian stocks resist yen, Merck pressure


Exporters like Sharp progressed in Tokyo, as Shiokawa hinted at more yen intervention

By Alex Frew McMillan

HONG KONG, China (CNN) -- Asian stocks shook off the effects of a strengthening yen and won on Tuesday. Almost all markets rose.

Tokyo closed up more than 1.5 percent. South Korean stocks rose more than 2 percent. Australia and Hong Kong also ended in the black.

There was little follow-through from the Merck & Co. shock that depressed Asian markets in late trade on Monday.

Taiwan turned around despite an overnight fall in U.S. markets (U.S. roundup).

Topix up on Sumitomo

New Zealand and China B shares fell, but the general Asian trend was up.

In Tokyo, the Topix index closed ahead 1.56 percent at 1,050.14. The Nikkei climbed 1.77 percent to 10,960.25.

The market showed little effect from the yen strengthening to a nine-month low against the dollar, at 118.32 in early trade out of Sydney.

Electronics maker Sharp Corp. climbed 2.3 percent to 1,534 yen, making back some of its losses from the strong currency.

Specialty circuits maker Kyocera closed ahead 1.7 percent at 8,990 yen.

Japan's Finance Minister, Masajuro Shiokawa, backtracked on comments he made this weekend that the yen might fall to 115.

"What I said was that there was such a rumor, such a trend, and we must stop it before it gets there," he said at a press conference. "We have not said we will tolerate it."

Intervention hint from Shiokawa

He hinted that Japan would likely intervene again if the yen starts to move quickly.


Samsung and LG Electronics are both likely to have gained from strong flat-screen TV sales during the World Cup

"Rapid movements are problematic and we are closely monitoring the speed of such moves," he told a committee in parliament. "In some cases, we may need to consider some measures."

Goldman Sachs strategist Kathy Matsui told CNN on Tuesday that a yen spike would not be sustained (full story).

But she questioned the extent of Japan's recovery and economic independence.

Sumitomo Mitsui Banking Corp., the second-biggest bank in Japan, rose 4.7 percent to 666 yen after a slide on Monday.

Cell-phone service KDDI lost 1.7 percent to 353,000 yen by the close, as it priced its new Internet phone call service due this fall.

Korean exporters climb despite won

The Korean won also strengthened on Tuesday, hitting 1,182.2 to the dollar.

Korean stocks also largely shook off that effect. The Kospi closed up 2.4 percent at 801.99. That was its highest close since June 18.

Power company KEPCO closed on a 5.5 percent gain at 22,950 won. A stronger won eases its overseas debt burden.

Chipmaker Samsung Electronics shook off earlier losses to close up 0.8 percent at 362,000 won. Rival Hynix Semiconductor jumped the daily 15 percent limit in Korea, to 580 won.

Electronics maker LG Electronics rose 1.6 percent to 52,300 won. It reports earnings Wednesday and is expected to see a boost from sales during the World Cup.

Taiex turns around in afternoon

Taiwan's Taiex closed down up 0.2 percent at 5,388.52. It turned around in afternoon, splitting with U.S. tech stocks.

Nasdaq showed a 2.95 percent drop on Monday. But in Taipei, chip foundry UMC climbed 2.11 percent to T$43.50.

TSMC changed direction and ended up 0.7 percent at T$71.50. The companies are the largest two listings in Taiwan.

TSMC posted an 83.4 percent rise in June sales after the close.

NAB up on merger talk

Sydney stocks locked in a gain of 0.76 percent, leaving the S&P/ASX 200 index at 3,258.4. News Corp. turned around to end up 2.5 percent at A$10.81.

That was despite a fall in the Dow, and Merck & Co.'s revelation that it booked $14 billion in sales that it never saw (full story).

National Australia Bank climbed 1.8 percent to A$34.50 with market talk again circulating that it is in merger talks with British bank Abbey National.

New Zealand's Top 40 index lost 0.35 percent to 2,087.44. Both Telecom New Zealand and Carter Holt Harvey, the two largest listings, lost ground.

In Hong Kong, the Hang Seng ended up 0.37 percent at 10,843.15. Bank stock HSBC lifted 1.4 percent to HK$91.50.

Airline Cathay Pacific climbed 2.03 percent to HK$12.55.

Broadcaster TVB fell 2.4 percent to HK$32.40, with a report tycoon Li Ka-shing plans to buy into rival ATV.

Singapore stocks are up 1.55 percent, the Straits Times standing at 1,646.33, with less than half an hour to go.