Asian stocks in tight range, Japan ends down


Japan and Australia ended more or less flat, with slight losses, but markets like Hong Kong and Taiwan rose

By staff and wire reports

HONG KONG, China -- Asian stocks traded in a tight range Thursday, with Japan and Australia closing narrowly down.

But Hong Kong, South Korea and Taiwan rose. Tech stocks got a boost from Nasdaq's overnight 1.4 percent rise, to 1,690.20.

Investors were cautious, though, with earlier optimism giving way to selling in Tokyo. U.S. markets had ended mixed, the Dow Jones industrial average giving up 0.5 percent to finish at 9,075.14.

The benchmark Nikkei 225 index made it five days of declines in a row for Japan. But its loss was modest, a drop of 0.2 percent to end at 10,347.28.

Sony gives up early optimism

The losses were broad-based, with the more-inclusive Topix index losing a more-pronounced 0.3 percent to 1,055.88.

Tech stocks like Sony Corp. had gained on Nasdaq's strong showing, its fourth rise in a row. But Sony lagged later in the day, to close up 0.65 percent at 4,660 yen. It hit 4,760 on the morning optimism.

Electronic parts maker TDK lost 0.7 percent to end at 5,400 yen. After the close, it cut its profit forecast for the year to break even, from an earlier estimate of a net gain of 21 billion yen ($171 million).

A stream of Japanese techs have slashed profit forecasts during this past week, the half-year earnings season in Japan.

Battered tire maker Bridgestone Corp. rose 12.4 percent to 1,297 yen on news Ford Motor Co. may soon initiate talks to repair relations between the companies.

They turned sour during a tire recall in the United States, but Ford replaced CEO Jacques Nasser on Wednesday and may now seek reconciliation.

HSBC breaks loss streak in Hong Kong

Hong Kong's Hang Seng index closed with a gain of 0.9 percent, at 10,164.33.

The market, which with a pegged currency and mapping interest rates, follows American movements closely. Though GDP figures released overnight showed the U.S. economy slowed 0.4 percent in the third quarter, the decline was less than expected.

Bank HSBC, Hong Kong's largest listing, finished up 1.2 percent at HK$85.50. Worries about its exposure to Argentina had pushed it lower three days in a row.

China plays enjoyed a solid day again, with China Mobile, Hong Kong's second-biggest listing, lifting 1.9 percent to HK$24.10.

China Unicom, the mobile-phone No. 2 in China behind China Mobile, rose 2.1 percent to HK$7.40. Some analysts prefer its profitability prospects.

Mainland China's B shares rose again, with Shanghai closing up 0.74 percent and Shenzhen, 1.2 percent.

Retail sales a boost in Sydney

In Sydney, the S&P/ASX 200 index lost 0.02 percent to end virtually flat at 3,248.8.

Australia's September retail sales came in better than expected, giving hope for its broader economy. Australian stocks have held up relatively well in this year's downturn because the island's economy is more insulated than most.

Electric- and computer retailer Harvey Norman put on 3.9 percent to A$3.45. Supermarket supremo Woolworths rose 0.4 percent to A$11.38.

Banking stocks - a defensive play - fared particularly well in October, rising steadily all month. But ANZ Bank, which has risen to record highs, fell 2 percent on Thursday to close at A$17.49.

Westpac lost 0.9 percent to end at A$14.67. It posts earnings on Friday that are expected to show profits growth has slowed to 8 percent.

New Zealand's NZSE-40 Capital index rose 0.35 percent to 1,964.83.

Frucor lost 2 cents to NZ$2.42, still higher than the NZ$2.35 offer made by France's Danone. Investors clearly expect other bidders to enter the running, and indeed Frucor said at its annual meeting it had hired Credit Suisse First Boston to help solicit interest.

Wellington's largest listing, Telecom New Zealand, lost 3 cents to NZ$4.60. Investors still aren't sure where the telecommunications sector - savaged in the stock selloff last year - is headed.

Chips are up in Korea, Taiwan

Seoul's benchmark Kospi index lifted 1.2 percent, one of the strongest showings in Asia, to close at 544.09.

Again Hynix Semiconductor raced away, after its creditors approved a fresh $7 billion bailout package late Wednesday.

It rose as much as it could, 15 percent, in a day to close at 1,280, matching Wednesday's showing.

Rival Samsung Electronics rose 3.2 percent to 179,000 won, also getting a boost from a research report that suggests the chip industry would recover modestly in 2002 and rebound in 2003.

Auto insurance stocks such as Hyundai Marine and Fire Insurance Co., Korea's No. 2, jumped on the prospect of higher margins on their products. In Taiwan, the Taiex rose 0.67 percent to 3,929.69. It was mainly a reflection of Nasdaq's showing, for a market driven by chip stocks.

The electronics subindex in Taipei climbed 1.12 percent. United Microelectronics Corp., the world contract-chip No. 2, rose 2.5 percent to T$29.10.

Shipping stocks got a boost from the Taiwan government's approval to expand a shipment center in southern Kaohsiung, Taiwan's second-largest city.

The Singapore Straits Times index was off 0.9 percent at 1,355.32, down sharply from a morning rise of 0.5 percent.

Network integrator Datacraft Asia, which warned on profits an hour after the open, was rattling tech stocks.

In Indonesia, the Jakarta composite index was down 0.1 at 383.430 just before the close. President Megawati Sukarnoputri gave a surprisingly negative speech as she opened an annual special session of the national assembly.

Reuters contributed to this report.