Asian Stocks: Japan Falls, Led by Mizuho, DoCoMo; Taiwan Gains
By Tomoko Yamazaki
Tokyo, Jan. 10 (Bloomberg) -- Japanese stocks fell for a second day, led by Mizuho Holdings Inc. and other banks as the Nikkei 225 stock average's 11 percent drop in the past month prompted them to accelerate sales of shares they own in their best clients amid concern about further declines.
The Nikkei fell 165.76, or 1.2 percent, to 13,446.50. The broader Topix index lost 1.3 percent to 1255.06. NTT DoCoMo Inc., Japan's dominant cellphone operator, declined on concern of slowing global cellular phones sales, and a report it won't bid for Cable & Wireless Optus Ltd.'s mobile phone assets in Australia.
``I'm expecting more declines as a result of unwinding of cross-shareholdings'' before the fiscal year-end in March, said Motoya Fukuzawa, a fund manager at State Street Global Advisors Co., who helps manage about $2.5 billion in Japanese stocks.
In other markets, Taiwan's TWSE index added 0.3 percent as First Commercial Bank and other lenders advanced for a second day on optimism the government is serious about cleaning up the industry's bad loans. Korea's Kospi index gained 0.4 percent, led by Dacom Corp. on hopes its labor union will end a two-month strike aimed at separating the company from its parent LG Group. Singapore's Straits Times Index rose 0.3 percent as electronic component makers including Chartered Semiconductor Manufacturing Ltd. mirrored gains on the Nasdaq Composite Index.
Japan's Mizuho, the world's largest bank by assets, fell 2.3 percent to 680,000 yen. Bank of Tokyo-Mitsubishi Ltd., Japan's largest commercial lender, fell 2.4 percent to 1074 yen. Sanwa Bank Ltd., which is merging with Tokai Bank Ltd. and Toyo Trust & Banking Co., slid 6.3 percent, to 778 yen.
The Topix Bank sub-index was the biggest drag on the Topix, falling 1.7 percent. Banks and investors are selling shares held in each other before the fiscal year ends in March.
Corporate investors and commercial lenders which often own shares in each other sold a net 4 trillion yen of shares last year up until the last week of 2000. That's two-thirds more than the 2.4 trillion yen of net selling by foreign investors during the same period.
Among other decliners, DoCoMo dropped 2.4 percent to 2.04 million yen, on concern of slowing global cellular phones sales. Nokia Oyj slumped 8.8 percent yesterday after the market leader said the industry sold 405 million phones last year, less than some analysts and its biggest competitors expected.
Taiwan
Taiwan's TWSE index rose 32.19 to 5408.31, its fourth gain in five days. Bank made up more than three-quarters of the index's rise on hopes Goldman Sachs Group Inc. and Chinatrust Commercial Bank's agreement yesterday to jointly form an asset management company will accelerate the banking industry's effort to clean up bad loans.
``That's a good first step in Taiwan's banking industry reform effort,'' said Bruce Richardson, head of financial services research in Asia outside of Japan at Indosuez W.I. Carr Securities Ltd.
First Commercial Bank gained 4.9 percent to NT$23.8. Chang Hwa Commercial Bank rose 3.2 percent to NT$16.3. Hua Nan Commercial Bank added 2.1 percent to NT$24. Chiao Tung Bank rose 2.1 percent to NT$29.
Limiting gains, United Microelectronics Corp. fell 0.9 percent to NT$52.5 after it said sales in December slowed from a month earlier due to power outages at its plant in Hsinchu.
Korea
Korea's Kospi index gained 1.06 to 590.98, rising for an eighth day. Dacom Corp., Korea's second-largest fixed line operator and biggest Internet service provider, rose 13 percent to 45,000 won after Dacom's labor union, which has been on strike since Nov. 8, said it was reviewing the possibility of returning to work.
``Investors are expecting this could lead to an agreement between labor union and management,'' said Bahn Young One, a telecom analyst at Good Morning Securities Co. Still, ``it is too early to make any judgment on Dacom's future as uncertainties still remain without any agreement made yet.''
Limiting gains, Hyundai Electronics Industries fell 3.7 percent to 5700 won because state-run Korea Development Bank has yet to buy $126 million of Hyundai Electronics' maturing bonds, as the two sides can't agree on the terms of the purchase.
``This could expand into a credit risk for Hyundai as the company is already having problems with its cash flow,'' said Hoh Young, a strategist at Yuhwa Securities Co. Hyundai Electronics has 4.7 trillion won in debt to repay this year, 3.4 trillion won of which is maturing bonds.
The government last week said it would buy cash-strapped companies' maturing bonds to ease their debt burden. Creditors agreed to allow Hyundai Electronics to discount export bills up to a limit of between $1.4 billion and $1.5 billion from the current level of $840 million to help ease cash flow.
Affiliates of Hyundai Group, Korea's second-largest industrial group, also fell. Hyundai Heavy Industries Co., the world's largest shipmaker, fell 2.6 percent to 20,750 won and Hyundai Merchant Marine Co., the nation's largest shipping company, fell 0.6 percent to 3260 won.
Singapore
Singapore's Straits Times Index rose for a fourth day in five, adding 10.94 to 1979.01. Electronics makers and computer- related stocks tracked their U.S. peers and extended gains. The Nasdaq Composite Index, which is made up of similar stocks, rose 1.9 percent yesterday on optimism prices already reflect prospects of a slowing U.S. economy.
``People, ourselves included, are starting to switch back to tech not so much because we believe that the recovery is going to happen tomorrow but because they present very good value,'' said Anthony Muh, who helps manage $2 billion in Asia excluding Japan for SSB Citi Asia, the asset management unit of Citigroup Inc. He declined to name the stocks he owns.
Chartered Semiconductor Manufacturing Ltd., the world's No. 3 maker of chips to companies' design, rose 1 percent to S$5.10. Venture Manufacturing Ltd., the city-state's largest electronics manufacturer by market value, added 0.7 percent to S$14. Omni Industries Ltd., Singapore's third-largest contract electronics manufacturer, gained 1.1 percent to S$2.78.
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