Korea, Taiwan stocks well ahead


Most Asian markets are recovering, with both of Japan's major indexes higher and Korea and Taiwan well ahead

By Alex Frew McMillan
CNN

HONG KONG, China (CNN) -- Asian stocks are moving higher on Friday, with only Australia and Hong Kong trading in the red.

Tokyo stocks opened sharply higher but lagged a little as the morning wore on. The tech-fueled Nikkei broke for lunch up 1.14 percent at 10,605.06.

South Korea is recovering some of Thursday's heavy losses with a rise of close to 3 percent. Taiwan is up almost 4 percent.

Hong Kong is down a quarter of a percent. Australia is also trading lower, as is Malaysia. But they are alone among Asia-Pacific markets.

Singapore is ahead a quarter of a percent. New Zealand is up. China's B shares are up, as are all the other smaller exchanges.

Yen unsettled

In Tokyo, the broader market, as measured by the Topix, rose 0.55 percent to 1,022.79. The yen dented the progress of some major exporters.

The currency is now trading stronger at 116.94 to the U.S. dollar. The market wavered after comments from Finance Minister Masajuro Shiokawa, suggesting traders were unsure what to make of them.

Shiokawa said volatility in the currency was improved over two weeks ago. But he also said Japan wants to keep its eye on the yen rate.

"Rates are decided by the market, but if there is volatility beyond our expectation, we must consider appropriate action," he said.

Airlines moving up


Japan's Shiokawa said the yen's volatility is better but added that Tokyo is still watching to see if it needs to act

Toyota Motor is trading flat at 3,000 yen, Tokyo's largest car stock not enjoying the overall rebound from Thursday.

Computer-oriented stocks are, however. NEC is up 2.24 percent at 820 yen.

Japan's airlines are also moving ahead, with Japan Airlines (JAL) up 1.76 percent to 347.

Rival All Nippon Airways (ANA), Japan's largest domestic carrier, is up 1.24 percent. Company sources tell CNN that ANA will push Air Do to cut costs heavily, as that discount carrier looks for a bailout (Full story).

Taiwan the strongest mover

Taiwan's Taiex is making the strongest move of the day. It was up 3.48 percent shortly before noon, leaving the index at 5,383.45.

Its chip foundries are rising after Nasdaq moved ahead 2.1 percent in U.S. trade on Thursday. United Microelectronics is up 4.5 percent to T$41.80.

TSMC is ahead 3.7 percent at T$70.00. Those are the two largest stocks trading in Taipei, and they map U.S. chip stocks closely.

The S&P 500 rose in a generally strong day for U.S. markets, though the Dow lost ground (U.S. roundup).

Korea blue chips soar

In Seoul, the Kospi is up 2.7 percent to 785.51 in early afternoon. At noon, Samsung Electronics jumped 4.4 percent to 346,00 won.

The market's large players are moving ahead. Cell-phone company SK Telecom leaped 3.2 percent to 274,000 won.

Steel company POSCO is up 4.1 percent to 138,500 won. A weaker dollar has eased its foreign-denominated debt load.

The Korean won is a little weaker at 1,183.7 to the U.S. dollar. State-run banks are buying dollars, according to Reuters news agency, with the finance ministry "talking the won" weaker.

Korea had tended to arrange currency swaps rather than taking the Bank of Japan's approach of intervening directly in the currency markets.

Australia slightly down

Australia's S&P/ASX 200 index is down 0.02 percent at 3,191.7 in afternoon trade. National Australia Bank is down 1.0 percent to A$33.37, speculation still swirling that it will bid for Abbey National in Britain.

Mining stock Rio Tinto is also down, with copper prices moving lower. But News Corp. is gaining.

In New Zealand, the Top 40 is up 0.36 percent at 2,079.35. Big caps are up again, with No. 2 stock Carter Holt Harvey ahead 2.1 percent at NZ$1.95.

Hong Kong's Hang Seng was down 0.12 percent shortly before noon, at 10,546.06. Bank stock HSBC is down 0.28 percent at HK$88.25.

Selling eases in Hong Kong

The selling pressure on Hong Kong's U.S.-oriented exporters has eased, though. Li & Fung is steady at HK$10.05. Johnson Electric is up 0.58 percent at HK$8.70.

Cathay Pacific is up on a generally sunny day for Asian airlines, ahead 0.81 percent to HK$12.40.

Singapore's Straits Times index is up 0.21 percent at 1,611.56, techs like chipmaker Chartered Semiconductor leading the way.