Asia shakes Merck effect by noon


Asian markets shook lingering doubts about U.S. accounting, moving ahead on Asia-specific issues and a steady yen

By Alex Frew McMillan

HONG KONG, China (CNN) -- Asian markets shook off quibbles about U.S. accounting procedures by midday on Tuesday.

Japan's Topix and Nikkei indexes are both up more than 1 percent in early afternoon trade. They broke for noon having already reversed their Merck-induced slide on Monday.

South Korean stocks are up 2 percent. Australia is up just over a third of a percent. Singapore and Hong Kong are also higher.

But Taiwan is tracking Monday's stock losses on Wall Street, leading the Taiex down close to 1 percent at noon. New Zealand is also down in afternoon going.

Nikkei higher as afternoon sets off

In Tokyo, the Topix broke for lunch up 0.74 percent to 1,041.60. But as the afternoon sets off it is improving on those gains, up 1.05 percent heading into mid-afternoon.


In Tokyo, both the Nikkei and the Topix are moving higher into the afternoon session, but Taiwan and New Zealand are down

The Nikkei ended the morning session up 1.13 percent at 10,891.29. It too is higher in afternoon, ahead to the tune of 1.56 percent.

U.S. drug maker Merck shook Asian markets in late trade on Monday, with word it had booked $14 billion in sales it never saw (full story).

But those jitters dissipated on Tuesday, as the company said it would not affect profits. Its stock dropped just 2 percent (full U.S. roundup).

In Tokyo, camera maker Canon ended the morning up 1.59 percent at 4,470 yen. The company also makes office equipment and gets around 70 percent of sales outside of Japan.

Shiokawa clarifies yen comments

But major exporters were not shaken by currency flux on Tuesday. The yen is steady at 118.66 to the U.S. dollar in Tokyo afternoon trade.

Finance Minister Masajuro Shiokawa said his comments this weekend that the yen might fall to 115 had been misinterpreted.

"What I said was that there was such a rumor, such a trend, and we must stop it before it gets there," he said at a press conference. "We have not said we will tolerate it."

The Korean won is stronger, at 1,186.2 to the dollar in Seoul afternoon trade. Seoul's main stock index, the Kospi, is up 2.0 percent at 798.99 at the same time.

Power company powers Seoul

Its morning gains came from industrial stocks such as KEPCO, the power company. Its shares are up 5.29 percent to 229,000 won in afternoon.

Korea Air Lines rose 2.8 percent to 18,300 won.

But market heavyweight Samsung Electronics was down 0.42 percent at 30,500 won at noon as the won strengthened.

Taiwan's Taiex is down 0.7 percent at 5,340.15, feeling pressure from Nasdaq's 2.95 percent slide overnight.

At noon, Taiwan Semiconductor Manufacturing Co. was off 0.7 percent at T$70.50. Smaller chip foundry United Microelectronics fell 1.2 percent to T$42.10.

Flat-screen maker AU Optronics is ahead again, up 0.57 percent, on strong sales.

In Sydney, the S&P/ASX 200 index is ahead 0.36 percent at 3,245.2 by mid-afternoon.

Sydney up by mid-afternoon

News Corp. gained 2 percent to A$10.76, recovering from the accounting shock pressure in the United States. It gets most of its sales there.

National Australia Bank is up 0.94 percent at A$34.22 on fresh speculation it will merge with British bank Abbey National.

Mining stocks are following through on Monday's gains.

New Zealand's Top 40 is down 0.35 percent at 2,087.44 on very low turnover. Big caps are down.

Hang Seng higher at noon

Hong Kong's Hang Seng index broke for lunch up 0.09 percent at 10,817.75. Bank stock HSBC gained 0.87 percent to HK$91.00.

Television company TVB drifted 3.01 percent shortly before noon, to HK$32.20. There is a report tycoon Li Ka-shing plans to buy into rival ATV.

Singapore stocks are up, leaving the Straits Times index up 0.2 percent at 1,624.55.