Asian stocks start week with rally


The yen has eased to 119 against the dollar, after starting Friday at 115, a weakness that is boosting export stocks

By Alex Frew McMillan

HONG KONG, China (CNN) -- Asian stocks gained on Monday, with Australia and New Zealand locking in gains of more than 1 percent and Hong Kong doubling that.

Japan also closed up, with the Topix just off the 1 percent mark. The Nikkei gained just over three-quarters of a percent as much of Asia recovered from heavy chip-related losses on Friday.

South Korea pushed slightly ahead, with the Kospi breaking 700, and Taiwan stocks closed with a very slight gain. China's B shares also advanced.

In Tokyo, the Topix closed up 0.94 percent at 951.91, and the Nikkei rose 0.79 percent at 9,666.67.

Car companies easier on yen, Honda

Exporters were breathing a little easier, with the yen weakening again against the U.S. dollar. The yen stands at 119.03 to the dollar in early trade out of Europe.


Monday's recovery came after Asian stocks sold off hard on Friday, when chips and telecom stocks suffered fallout from TSMC's earnings

Honda closed up 4.8 percent at 5,020 yen ahead of reporting a record quarterly profit. It has predicted a yen rate of 125 for the rest of the year.

Separately, Honda said it would buy back 3 million shares by the end of October.

Nissan Motor rose 4.03 percent to 801 yen, in the heaviest trading in Tokyo. It gained from the yen and a tightening of ties with partner Renault.

Larger rival Toyota rose 0.72 percent to 2,780 yen. The yen also helped tech exporter Sony Corp. see a mild rally, lifting 0.57 percent to 5,310 yen.

DoCoMo, select techs up

But it was less affected than most Tokyo techs by last week's selloff, which came as it posted strong earnings.


With summer in full swing, Tokyo markets took heart from a Nasdaq rally on Friday and selected techs rose

Technology stocks drew strength from a Nasdaq rally on Friday. NTT DoCoMo soared 8.9 percent to 269,000 yen.

Its parent NTT raced ahead 6.77 percent to 489,000 yen. Chip- and computer Toshiba lifted 0.45 percent to 450 yen.

Gains were not uniform, with NEC and Fujitsu slipping.

Japan's banks lost ground, continuing their late-week selloff. Mitsubishi Tokyo Financial Group fell 2.1 percent to 791,000 yen.

It is generally seen as Japan's strongest big bank. Its auditor confirmed that it is strengthening accounting standards to SEC rules(Full Story).

Australia up on News, Telstra

In Australia, the benchmark S&P/ASX200 finished up 1.53 percent at 3,035.2. News Corp. climbed 5.0 percent to A$8.88.

Investors were encouraged by the Dow's 0.95 percent rise on Friday, outdone by Nasdaq's 1.78 percent jump.

Telecom stock Telstra continued its run, up 2.7 percent to A$4.88. The company said broadband adoption is progressing quickly (Full Story).

AurionGold dropped 5.0 percent to A$2.88 as Placer Dome of Canada said its improved offer was final. The Canadian bidder sweetened it with cash, by 35 cents a share(Full Story).

New Zealand's Top 40 finished up 1.39 percent at 1,987.18, with few shocks out of the general election and the Labour Party returned.

Telecom New Zealand climbed 3.23 percent to NZ$4.78.

Korea, Taiwan quiet

Asia's tech-driven markets were staid on Monday, with Korea's Kospi rising 0.36 percent to 700.35.

Samsung Electronics provided the fuel, the chipmaker running up 1.6 percent to 325,000 won.

Rival memory chip producer Hynix jumped the daily 15 percent limit for a one-day move, to 510 won.

Carmaker Hyundai Motor lifted 3.9 percent to 32,900 won after getting a boost from SK Securities.

But moves were muted, and steelmaker POSCO drifted 3.8 percent to 113,500 won on overseas selling.

In Taiwan, the Taiex ended almost flat, up 0.06 percent at 4,858.44. TSMC was a big drag on the market, again tumbling the daily 7 percent limit to T$50.50.

Last week, it reported disappointing earnings and a gloomy forecast for the rest of the year.

UMC stemmed its losses but still suffered in sympathy, finishing 5.07 percent down at T$31.80.

Hong Kong rallies the most

Hong Kong's Hang Seng index put on the day's largest gain. It ended up 2.08 percent at 9,975.99.

Bank stock HSBC led the way with a 2.06 percent gain to HK$86.75. Last weeks' heavy losers, China Mobile and China Unicom, also climbed, up 1.75 percent and 3.92 percent.

Property stocks rallied strongly, Cheung Kong Holdings surging 4.31 percent to HK$60.50.

The Bank of China Hong Kong was up 2.42 percent to HK$8.45, but is still below its debut price of HK$8.50.

Singapore stocks are up 0.68 percent heading into the close, the Straits Times index standing at 1,504.87.