Asian stocks rise, shake September 11 doubts


Japan's market didn't match Monday's gains in the United States, but Taiwan and South Korea both locked in strong runs

By Alex Frew McMillan

HONG KONG, China (CNN) -- Asian stocks climbed on Tuesday, with Tokyo locking in a second day of gains.

The broader market ended solidly higher, as measured by the Topix, which ended 0.52 percent higher at 912.61. But the tech-tinged Nikkei only mustered a negligible rise, up 0.03 percent to 9,309.31.

Other Asian markets were also higher, both Taiwan and South Korea jumping more than 2 percent.

Hong Kong closed up more than 1.5 percent, and Singapore is up almost 2 percent heading into the close.

Virtually the only weakness came Down Under, where both Australia and New Zealand lost a little ground. Jakarta is also trading lower.

But the direction was pretty solidly up on Tuesday, after a day of gains on Wall Street overnight.

Investors are tentative ahead of the anniversary of the September 11 attacks on Wednesday, however.

Exporters higher in Japan

There were also some misgivings in Japan about the administration's proposal to buy exchange-traded funds with government pension funds. (Full story)

Finance Minister Masajuro Shiokawa questioned whether the government should be risking public money in the market.


Stronger wholesale figures in the United States boosted companies such as Sony that look to that market

Stocks in Japan were still enjoying the glow of that plan generated on Monday. Companies with large operations in the United States got a boost from better wholesale data there.

Sony Corp., the world's largest consumer electronics maker, rose 2.41 percent to 5,100 yen.

Car companies such as Toyota Motor, up 0.34 percent to 2,935, and Honda Motor, up 0.21 percent to 4,830 yen, were also stronger.

The yen gave them a little traction, trading weaker at 118.61 to the U.S. dollar in early trade out of Europe.

Fuji Photo Film climbed 2.87 percent to 3,590 yen after saying it has developed a cheaper, plastic fiber-optic fiber for home broadband networks. (Full story)

Banks retake some lost ground

Big caps generally moved higher, with Mizuho Holdings up 2.95 percent to 244,000 yen. Most other banks were up, too.


There are doubts about Koizumi's stock-buying proposal, which some fault for bringing government too far into the market

UFJ Holdings rose 2.37 percent to 259,000 yen despite a report it and other creditors may offer a bailout to Towa Real Estate Development Co.

Fixed-line telecom NTT climbed 2.49 percent to 452,000 yen, with cell-phone subsidiary NTT DoCoMo up 0.43 percent to 234,00 yen.

Japan's gains failed to match the U.S. stock performance on Monday. The Dow Jones industrial average rose 1.09 percent, and Nasdaq added 0.72 percent to 1,304.60. (Full story)

Taiwan shows strongest gains

On Tuesday, Taiwan's chip-driven market outstripped the rest of Asia with a 2.97 percent leap to 4,668.01.

Market heavyweight TSMC soared 4.12 percent to T$50.50 after posting August sales after the close on Monday. TSMC has also applied for permission to build a chip plant in China.

Rival United Microelectronics gained 3.2 percent to T$27.90.

Chipmakers Winbond Electronics and Nanya Technologies both ran up the daily 7 percent limit to T$20.50 and T$32.10, respectively.

In South Korea, the Kospi raced ahead 2.21 percent to 713.30, with big caps drawing interest.

SK Telecom rose 3.94 percent to 237,500 won and Samsung Electronics added 2.01 percent to 330,000 yen.

But Seoul investors are also looking to the United States, with U.S. Federal Reserve Chairman due to address the House Budget Committee on Thursday.

Banks lower in Sydney

In Sydney, the S&P/ASX 200 index fell 0.29 percent to 3,110.7, with bank stocks weak and the market waiting for September 11 to pass.

National Australia Bank, the country's largest financial institution, fell 0.23 percent to A$35.42. Commonwealth Bank gave up 0.71 percent to A$32.05.

Telecom stock Telstra fell 1.66 percent to A$4.96.

There were gains for defensive mining stocks. BHP Billiton rose 1.7 percent to A$9.11 and Rio Tinto added 1.3 percent to A$31.54.

The U.S. gains pushed News Corp. 0.75 percent higher to A$9.42.

New Zealand's Top 40 fell 0.03 percent, ending almost flat at 2,018.36. Telecom New Zealand lost 0.61 percent to NZ$4.90.

Gas and electricity distributor UnitedNetworks rose 2.6 percent to NZ$9.75 after Auckland-based utility Vector agreed to buy the company for NZ$9.90 a share. (Full story)

Hong Kong solidly higher

Hong Kong's Hang Seng index rose 1.67 percent to 9,885.77, with gains across the board.

All but one of the 33 stocks in the Hang Seng ended higher. Citic Pacific was the lone laggard, down 0.59 percent at HK$16.95.

Airline Cathay Pacific attracted bargain hunting, closing up 3.86 percent at HK$10.80.

Property company New World Development rose 2.54 percent to HK$5.05, with the company expected to bid in the government's third land auction this year.

Sun Hung Kai Properties rose 1.91 percent to HK$50.75.

Singapore's Straits Times index is up 1.87 percent at 1,450.45 heading into the close. Singapore Airlines was up 3.96 percent at S$10.50 by mid-afternoon.