Tokyo closes higher but Asia wavers


Tokyo closed higher Monday but most other Asian markets weakened, with Taiwan sharply lower

HONG KONG, China -- Asia Pacific markets struggled for direction in Monday's trade, before Japan's Nikkei and Topix ended higher.

Most other markets were unable to match Japan, with South Korea, Australia and Taiwan closing lower and Singapore's Straits Times index in the red heading for the close.

Taiwan did worst, slipping more than 3.7 percent.

Hong Kong's market is closed Monday for a public holiday to mark the Buddha's birthday.

New Zealand was a rare gainer, up 0.27 pecent after a potential deal was unveiled by No. 2 forestry company Fletcher Challenge Forests and China's investment conglomerate CITIC.

In Tokyo, the Nikkei wavered into the red at times during the day but closed just 9.22 points or 0.08 percent higher at 11,856.64.

The broader Topix index rose 8.59 points or 0.77 percent to 1117.13. At one stage it was up almost 1.5 percent.

Yen surge hurts car companies

In Tokyo, the strong yen is hurting major exporters like car companies. Honda Motor ended the day down 1.71 percent at 5750 yen. Toyota was down 0.84 percent and Nissan slipped more than 2.5 percent.

Against the U.S. dollar, the yen roared through the 127 and 126 barriers, heading to 125.6 by the end of Asia's trading day. The South Korean won also soared against the greenback, touching a 15-month high of 1253.

The central Bank of Japan started a two-day meeting of its policy board on Monday. There are no major economic figures for release.

Consumer electronics leader Sony closed marginally higher, up 0.14 percent at 7250 yen after confirming reports it is planning to build a plant in China, probably to assemble chips (full story).

Japan's banks report earnings later this week. These are often construed as a key indicator of the Japanese economy. Mizuho Holdings was unchanged at 276,000 yen, UFJ put on 3.2 percent to 352,000 yen and SMBC jumped 4.7 percent to 670 yen.

Technology-related stocks were mostly higher, with Fujitsu and Hitachi both up about 1.5 percent.

Telco giant NTT, which reported a record loss last week, closed 4.1 percent higher at 552,000 yen.

Australian stocks down on thin trade

Australian markets ended down, with the S&P/ASX 200 index 0.57 percent lower at 3393.3.


The strong yen is hurting big exporters such as car companies

News Corp. was down after its earnings last week, off 1.1 percent at A$13.67. Lend Lease dropped 6.6 percent after the property group warned 2003 results would be at the low end of expectations. It is also stepping up its search for a new chief executive.

In New Zealand, Fletcher Challenge Forests was up around 20 percent on news it is talking to China International Trust and Investment Corp. about a $200 million capital injection.

In Taiwan, the Taiex finished sharply lower, off215 points or 3.72 percent to 5574.71. Techs dived across the board.

Taiwan Semiconductor Manufacturing Co. lost 2.8 percent to T$87 as chipmakers gave up recent strong gains for a second day. Asustek Computer dropped 4.3 percent to T$121.

Seoul lower

South Korea's Kospi closed 1.06 percent lower at 865.78. Analysts say the index is looking at 900 but likely to wobble as low as 860 in the near future, too.

Chipmkaer Samsung Electronics, the largest stock dropped 3.2 percent.

Singapore stocks are essentially flat, the Straits Times index down 0.28 percent at 1728.86 in late afternoon trade.

Singapore Airlines is off 0.7 percent after reporting earnings on Friday.

Wall Street ended last week with a bullish bang, closing on solid gains for Friday and the week. The Nasdaq fired ahead 0.63 percent to 1,741.39, techs leading the way.

The Dow Jones industrial average rose a similar amount, up 0.62 percent to 10,353.08 (full U.S. roundup).