Asian markets rise on Japan easing


All eyes were on Japan, where the Nikkei warmed to the BOJ's moves and ignored another corporate collapse

By staff and wire reports

HONG KONG, China -- Asian stocks moved higher on Wednesday, shaking off yet another corporate failure in Japan.

The central Bank of Japan did its best to boost markets, with moves to ease monetary policy, which was cheered by Finance Minister Masajuro Shiokawa.

The BOJ decided to increase the amount of Japanese government bonds it buys each month to 800 billion yen ($6.25 billion), up from 600 billion, ending a two-day policy meeting.

The central bank also raised its target for current-account deposits to between 10 and 15 trillion yen, as it tried to inject more cash into Japan's economy.

The Nikkei responded warmly to the steps, ending up 0.38 percent at 10,471.93.

The broad Topix index, which recently touched a three-year low, rose 0.41 percent to end at 996.66.

Supermarket chain failure

Stocks largely ignored Kotobukiya's failure, which became Japan's 14th public company to go under when it filed for court protection from its creditors.

The regional supermarket chain is the largest on the southern island of Kyushu. Its collapse rattled Izutsuya Co., a Kyushu department store chain, which closed down 12.1 percent at 138 yen.

But Japan's banks raced higher on the BOJ move.

Mizuho Holdings, Japan's biggest bank and the largest in the world by assets, leaped 5.05 percent to 229,000 yen.

No. 4 bank UFJ Holdings climbed 6.4 percent to 250,000 yen.

Investors were betting they'd benefit from easier credit. But the gains are expected to be short-lived.

The yen raced higher, to 128.43, after a report that Standard & Poor's is ready to downgrade Japan's national debt rating again.

Toshiba, Japan's largest chipmaker, fell 0.87 percent to 455 yen, a day after agreeing to sell a U.S. chip plant to Micron Technologies.

Christmas in Sydney

In Australia, the S&P/ASX 200 index closed up 0.11 percent at 3,324.1.

Healthcare group Mayne Nickless fell 4.3 percent to A$6.48, its lowest close in three months,

It announced that high-profile CEO Peter Smedley will become chairman next September, with COO Stuart James taking over the CEO post.

Banks were generally higher, though Australian trading in general seems to easing ahead of the Christmas holidays.

Mining giant BHP Billiton climbed 3 percent to A$10.35 and was Sydney's most-active stock.

Airline Qantas fell six cents to A$3.65 on threat of industrial action and is now down 8.8 percent in a little over a week.

In New Zealand the NZSE-40 index lifted 0.72 percent to 2,035.58.

Large-cap stocks were having a bit of a run, with Telecom New Zealand up 1.85 percent to NZ$4.95, recouping much of Tuesday's losses.

Sky Network Television, 12 percent owned by Telecom, gained 2.6 percent to NZ$3.90.

Wood products company Carter Holt Harvey was up 1.2 percent to NZ$1.67.

Korea gains

In South Korea, the Kospi eked out a 0.51 percent gain to end at 647.05.

That was despite the failure of two corporate tie-up talks involving Korean companies.

Hynix Semiconductor, which has been negotiating with U.S. chip company Micron Technologies, closed down 2.6 percent at 2,025 won.

After its deal to buy Toshiba's memory-chip plant in Virginia, Micron said it is not interested in taking a stake in Hynix.

Micron's poor profits reported overnight in the United States depressed Samsung Electronics, Seoul's largest listing, though it still ended up 1.3 percent at 264,000 won.

SK Telecom rose 2.5 percent to 244,000 won, despite Japan's leading cell-phone operator NTT DoCoMo calling off 18 months of talks about an alliance.

In Taiwan, the Taiex lost 2.01 percent to 5,221.96, for a third successive down day.

Bank stocks were down 5.7 percent on more profit taking after a fierce runup driven by merger speculation.

But investors were largely over Tuesday's earthquake in Taiwan, which they had thought might affect chip production.

The electronics index ended down just 0.57 percent. Taiwan Semiconductor Manufacturing Co., the largest listing, rose 3.6 percent to T$85.50.

Hong Kong up, China drops

Hong Kong's Hang Seng index rose 0.68 percent to close at 11,565.23.

Cathay Pacific reversed some of its recent losses over earning concerns, rising 3.14 percent to HK$9.85.

Pacific Century CyberWorks climbed 2.35 percent to HK$2.175, ahead of announcing its Reach joint venture with Telstra to buy the Asian assets of Level 3 communications.

China's B shares dropped 1.6 percent in Shanghai and 1.35 percent in Shenzhen, still plagued by concern about new A share listings sapping investors' cash.

In Singapore, the Straits Times was up 0.96 percent at 1,598.85 in the last hour of trade, holding steady on gains from property and blue-chip stocks.

India's main index in Mumbai was off, down 0.92 percent at 3,305.16, as tensions remain high between India and Pakistan after last week's terrorist attack in New Delhi.