Asian stocks recover, book gains


South Korea's soccer run has come to an end, but the Seoul stock market recovered a little Thursday from Wednesday's WorldCom-induced 7 percent drop

By staff and wire reports

HONG KONG, China -- Asian markets closed broadly higher on Thursday, showing again they have a life of their own in 2002.

In Tokyo, the broad Topix index closed up 0.99 percent at 994.05, while the Nikkei 225 index rose 1.86 percent to 10,261.60.

South Korea, Australia and Hong Kong all rose more than 1 percent. New Zealand also shook off any shock from WorldCom's $4 billion accounting issue in the United States.

One of Asia's only losers was Taiwan, down 1.0 percent to 5071.76. It broke step with Nasdaq again, after the U.S. tech index climbed 0.38 percent on Wednesday.

Singapore is trading in and out of the red near the close.

Sony and others flag toward close

The Dow Jones industrial average and the S&P 500 both dropped on a roller-coaster day for U.S. stocks (full U.S. roundup).


Japanese Brazil fans cheered the progress of their team to the final of the World Cup, slated for June 30 near Tokyo

Asian markets opened higher and stayed that way. Sony Corp. and other techs gained but gave up their head of strength as Thursday wore on.

Sony, the home of the Aibo dog, closed up 3.8 percent to 6030 yen, recovering from a four-month low caused by the follow-on effect of the WorldCom scandal.

After Enron, U.S. Securities and Exchange Chairman Harvey L. Pitt quoted his mother, in reference to U.S. stocks: "Fool me once, shame on you. Fool me twice, shame on me."

The U.S. president also vowed an investigation (full story).

Capital heading to Asia

Investors appear to be contending with a world in which capital is flowing freely out of U.S. markets, formerly the paragon of trust.

Chipmakers gained in Japan after Micron Technology unveiled losses in the United States.

The hit to the U.S. dollar is forcing Asian currencies higher. The yen stabilized on Thursday in Asian trade, after strengthening dramatically with the WorldCom shock.

The Japanese currency stands at 119.68 in early European trade out of Zurich. South Korea's won closed at 1202.8 to the dollar in Seoul trade.

In South Korea, where the Kospi lost more than 7 percent on Wednesday, the index put on 1.22 percent to 1198.35. The government has been moving to bolster the run Seoul has seen this year.

Currency boost in Korea

Rating agency Fitch also dealt South Korea support, with an upgrade of the country's currency rating.

Cell-phone carrier SK Telecom lifted 1.8 percent to 260,500 won after competing rating agency Moody's Investors Services said it is looking at an upgrade of the company.

Embattled Hynix Semiconductor came off its recent record lows to rise the daily 15 percent limit in Seoul, hitting 230 won. The commerce ministry stated it sees the company surviving solo.

In Australia, the benchmark S&P/ASX200 closed up 1.05 percent at 3212.9. Telecom carrier Telstra lifted 2.2 percent to A$4.60, topping the volume chart. News Corp added 1 percent to A$9.95.

Gold gives up ground in Sydney

Mining stocks were also up, with BHP Billiton and Rio Tinto climbing. Beer and wine company Foster's lifted 0.9 percent to A$4.74.

But gold stocks fell after a decline in bullion overnight.

New Zealand's Top 40 finished up 0.45 percent at 2,073.36. Telecom New Zealand made up one-third of turnover, dropping 0.4 percent to NZ$4.96.

Wood-products company Carter Holt Harvey climbed 1.0 percent to NZ$1.98.

With Sydney Airport now sold, investors are watching for movement on Auckland Airport. The local city council is aiming to sell a 25.7 percent share.

Taiwan's Taiex dropped 1.0 percent to 5071.76. Investors cited stop-loss selling from large market players.

Hong Kong exporters bounce

In Hong Kong, the Hang Seng index finished up 1.57 percent at 10,518.09. It saw solid gains from some of the city's major exporting companies.

Much analysis is focused on the city's progress five years after it became part of China (full story).

Exporters have seen their stocks lifted by the weakening U.S. dollar, pegged directly to the Hong Kong dollar at HK$7.8.

Small-motor maker Johnson Electric leaped 4.65 percent to HK$9.00. Li & Fung rose a similar amount.

Bank stock HSBC Holdings, the largest listing in Hong Kong, rose 1.44 percent to HK$88.25.

Singapore's Straits Times index is up 0.34 percent at 1537.31 heading towards the close. The index sank to seven-month lows the day before on concern about Wall Street.