Tokyo takes Asian markets higher


Concerns over Japan's ailing banks is weighing on the market

HONG KONG, China -- Most Asian markets struggled to a higher close Thursday as bluechip gains on the back of positive U.S. economic data were capped by earnings jitters and heavy selling.

Japan, Australia, Singapore and Taiwan finished in the black, but Hong Kong and Korea slipped into the red.

In Tokyo, the benchmark Nikkei 225 average put on 78.32 points or 0.79 percent to close at 9,997.80. The broader capital-weighted Topix index rose 7.02 points or 0.73 percent to 971.77.

Japanese stocks, particularly automakers and consumer electronics companies, made ground. But several blue chip issues were stunted by worries over banks' bad debt woes.

Exporters got a boost from better-than-expected U.S. fourth quarter GDP, and the U.S. Federal Reserve's decision to leave interest rates unchanged on signs of economic strength.

Carmakers on the rise

Automaker Toyota Motor Corp gained 2.07 percent to close at 3,450 yen. Honda added 50 yen or 0.95 percent to 5320 yen, while Nissan closed virtually flat, up 1 yen to 713 yen.

Earnings jitters hurt some tech issues, with NEC Corp falling 0.76 percent to 1,050 yen. After the close, it warned it was doubling its forecast group net loss for the year to March to 300 billion yen ($2.26 billion).

Stocks in Seoul closed lower on heavy selling of blue chips. The main Kospi slipped 0.18 percent to end at 748.07, while the over-the-counter Kosdaq gained 1.52 percent to 77.36.

Trigem Computer, which exports most of its products to the United States, soared 7.8 percent to 13,900 won on signs of a brighter economic outlook for the world's biggest economy.

But top mobile carrier SK Telecom fell 2.29 percent to 256,000 won. Market heavyweight Samsung Electronics lost 2500 won or 0.83 percent to 300,500 won, and chip giant Hynix Semiconductor dropped 3.17 percent to 2,440.

Kumho Industrial Co plunged 5.57 percent to 3,050 won, despite an announcement that a consortium led by U.S. private equity fund Carlyle Group was the preferred bidder for a controlling stake in its lucrative tire operations.

Miners down

In Australia, shares closed on the upside helped by Toll Holdings/Lang Corp's winning rail freight deal, and gains in heavyweight News Corp.

Transport group Toll Holdings closed up 13.8 percent to A$30.00, while Lang Corp soared 22 percent to end at A$13.50.

Media giant News Corp closed up 2.8 percent at A$13.70, helping push the benchmark S&P/ASX 200 index up 30.7 points or 0.9 percent to 3,464.2.

Dragging the market were resources stocks, which ended mostly down on general earnings concerns for the sector and an easing of merger fervor.

Anglo-Australian miner Rio Tinto, which recently forecast slowing profit growth, finished down nine cents at A$38.31, while rival BHP Billiton was also down nine cents at A$11.18.

After the close, Rio Tinto reported record earnings before exceptional items of $1.66 billion, a gain of 10 percent. But net profit fell 28 percent to $1.08 billion.

In Taiwan, stocks closed higher, led by heavy industry plays from foreign fund buyers, analysts said.

The benchmark Taiex shares index finished up 59.47 points or 1.02 percent at 5,872.14.

China-related shares also went up after Beijing softened its stance toward Taiwan's ruling party earlier this week.

Petrochemical major Formosa Plastics surged T$2.80 or the daily seven percent limit to T$43.59.

Banks up

In Singapore, shares were firmer in the afternoon as Wall Street's rally and data indicating an early recovery for the U.S. economy cheered sentiment.

The Straits Times index was up 1.18 percent at 1,776.38, lifted by gains in banks.

United Overseas Bank rose 4.14 percent to S$15.10, while DBS Group Holdings moved up 2.08 percent to S$14.70.

Keppel Corp soared 4.62 percent to S$4.08 after the conglomerate unveiled better-than-expected 2001 earnings.

But shares in Hong Kong reversed earlier gains to fall in the afternoon. The main Hang Seng index closed down 31.66 points or 0.29 percent to 10,725.3.

Banking heavyweight HSBC was slightly higher at HK$87.50, China Mobile was flat, and rival China Unicom slipped about 0.7 percent.

Conglomerate First Pacific Co Ltd plunged 7.56 percent to HK$1.10 after it said on Thursday it would post $1.7 billion in "asset impairment provisions" in its 2001 results.

Chine's largest beer maker Tsingtao Brewery dropped 6.45 percent to HK$2.175 after it warned of a 20 percent decline in its net profit for 2001.