Asia Watch

By RAY HEATH
Updated:

 

An overnight rebound on Nasdaq helped to power Japanese stocks higher in today's trading but other major Asian markets were not impressed.

With seasonal selling coming to an end, a round of upward revisions in profit fore-casts, and the better performance by US technology stocks, Tokyo stocks moved forward once more, following yesterday's 150-point gain in the Nikkei 225 Average.

Technology stocks led South Korea and Taiwan sharply lower, while in Hong Kong blue-chip weakness pushed down the Hang Seng index following Wednesday's holiday.

The Nikkei closed 22.76 points up at 16,213.28, with top technology-related stocks providing much of the strength.

Standout mover was electronics conglomerate Hitachi, which rose almost 5% after it raised its forecast of earnings in the first half of the year on the back of strong demand for chips used in consumer electronic products. Other cheap related counters were clawing their way back vigorously from recent falls. Market leader NEC rose 1.98%, while Advantest gained 2.27%.

Hong Kong investors were soon selling blue-chips. At one point the Hang Seng was as low as 16,351.93 and it finished morning trade at 16,437.29, down 192.49.

Investors continued to pile out of former superstar internet and telecoms stock Pacific Century Cyberworks, unnerved by a recent share placing, directors' share sales and the unravelling of joint ventures.

The knowledge that Cable & Wireless is sitting on a 20% stake which could be sold at any time is also adding to the nervous feeling and PCCW lost a further 2.9% to HK$11.85, taking the stock to 60%below its February all-time high. Other technology-related stocks on the slide included China Mobile, while among the blue-chips, HSBC lost 50 cents to HK$110.50.

Investors in Seoul, returning after a three-day holiday were also in strong selling mood, with foreign institutions big sellers of technology stocks. By midday the Korea Composite was down more than 4%, falling 26.71 points to 626.97.

Mass selling of chips giant Samsung slashed more than 7.5% off the value of the stock, which is now approaching its lowest levels since November 1999. Foreigners were also being blamed for a bad day in Taiwan, where the Weighted index fell more than 2% at one point. It finished the morning down 239.37 points at 7152.29, bringing it closer to the key 7000 level which the government says it is prepared to defend.

Singapore investors were taking note of Nasdaq and picking up recently friendless technology stocks. Industry leader Chartered Semi-conductor rose 10 cents to close the morning at S$12.40, and the Straits Times index added 9.30 points to 2091.39.

A report that it would take Thai banks up to seven years to recover fully from their massive bad debts did not deter some local investors from buying banking and finance stocks, but in thin turnover the SET index lost 1.25 points to 289.30.

Selective blue-chip buying in Kuala Lumpur lifted the Composite index 6.55 points to 751.62.

Institutional buying of News Corp stocks, up 21 cents to A$25.40, provided some impetus in Sydney, and the All Ordinaries added 7.8 points to 3293.3.

Trading in Jakarta was halted by the bombing of the stock exchange.

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