Asia markets shrug off MSCI news
Nikkei ends above 15,000; Seoul soars 3.7%
By Mariko Ando & Vivian Chu, CBS.MarketWatch.com
1:50 AM ET Dec 11, 2000
TOKYO (CBS.MW) - Asian stock markets remained upbeat Monday, even as Morgan Stanley Capital International (MSCI) announced changes in the way it gauges the world's most widely watched indexes that will be of detriment to the region.
Indexes rose across the board, helped by gains in the technology and telecommunication sectors after the Nasdaq climbed 5.99 percent on Friday. The Dow closed up 0.9 percent. A possible end to the U.S. election dispute this week also buoyed sentiment.
Japan's Nikkei Average gained 2.17 percent, or 319.19 points, to close at 15,015.70. The gauge managed to close above the key 15,000 level for the first time in more than a month. The broader TOPIX was up 1.48 percent at 1,385.74 points.
MSCI on Sunday announced it will base the weighting of companies in its benchmark international indices on the shares available for trading. Companies in Asia that have high government ownership and cross-shareholdings will see their weightings reduced or be removed from indexes altogether. See full story.
"Investors were undeterred because the changes won't take effect until next year. Even thought the changes might affect certain sectors, injury should be limited because the market has ample time to digest the news," said Teruhisa Ishikawa, deputy manager of the investment products planning section at Izumi Securities.
"The market no longer has an eyesore. Market participants are likely to be smaller than usual towards the end of year but the index's losses should be limited from now on."
Japanese telecom giant Nippon Telegraph and Telephone Corp. (NTT: news, msgs) rebounded after coming under selling pressure recently due to worries its weighting in the MSCI index might be cut. Shares of NTT gained 2.3 percent to 920,000 yen.
Other shares that will be affected by the change gained as well. Toyota Motor (TM: news, msgs) rose 2.9 percent to 3,880 yen and Sony Corp. (SNE: news, msgs) was up 5.2 percent at 8,980 yen.
Japan Telecom's shares surged by their daily limit of 300,000 yen or 17 percent to 2.08 million yen on media reports that Vodafone Plc (VOD: news, msgs) has agreed to buy a 15 percent stake in Japan's third-largest telecommunications operator for about $2.5 billion in cash. See full story.South Korea's Kospi jumped 3.74 percent to close at 554.80 points by early afternoon. Shares of Samsung Electronics Co. (SSNGY: news, msgs) surged 6.2 percent to 179,000 won. Mobile operator SK Telecom (SKM: news, msgs) soared 8.7 percent to 288,000 won.
Korea Telecom shares (KTC: news, msgs) rallied 4.7 percent to 72,900 won ahead of the government's announcement of winners for third-generation (3G) mobile service licenses expected this Friday.
Taiwan stocks ended modestly higher on MSCI's announcement that the inclusion weighting of the MSCI Taiwan index will remain unchanged at its current level of 80 percent. The Weighted Index rose 0.60 percent to 5,284.41.
Shares of the world's two largest foundries Taiwan Semiconductor Manufacturing (TSM: news, msgs) and United Microelectronics Corp. (UMC: news, msgs) ended flat. Chipmaker Mosel Vitelic (MOSLY: news, msgs) jumped 2.2 percent to 22.90 Taiwan dollars.
Hong Kong's Hang Seng Index rose 1.05 percent, or 159.68 points, to 15,349.01 by mid-day. Shares of Pacific Century CyberWorks (PCW: news, msgs) edged up another 0.9 percent to 5.90 Hong Kong dollars, after surging 8.3 percent on Friday. The company and Australian partner Telstra Corp. are planning to raise up to $1.5 billion through listing at most 10 percent of three joint ventures by next year, reported the Australian newspaper.
Shares of conglomerate Hutchison Whampoa (HUWHY: news, msgs) gained 3.1 percent to 101.00 Hong Kong dollars. But those of its parent Cheung Kong Holdings (CHEUY: news, msgs) shed 0.8 percent to 98.00 Hong Kong dollars, on expectations that its stock won't be included in the MSCI Hong Kong Index anytime soon.
In Australia, the All Ordinaries Index closed up 0.72 percent at 3,255.90. Shares of volume leader Telstra Corp. (TLS: news, msgs) jumped 3.0 percent to 6.47 Australian dollars. But those of News Corp. (NWS: news, msgs) gave up 1.2 percent at 16.11 Australian dollars on fears that MSCI's change would hit the company.
New Zealand's NZ Top 40 ended up 0.49 percent at 1,975.66 points, boosted by a 1.3 percent jump in shares of index heavyweight Telecom Corp of New Zealand (NZT: news, msgs) , which stood at 5.65 New Zealand dollars.
Singapore's Straits Times Index rose 1.25 percent to 1,984.60 points. Shares of Singapore Telecommunications (SGTJY: news, msgs) jumped 2.25 percent to 2.73 Singapore dollars. But Malaysia's KLSE Composite slid 0.14 cent to 732.47 points by early afternoon.
In the currency markets, the dollar eased against the yen and was trading recently at 110.80 yen by mid afternoon Tokyo, against 111.00 yen in New York late Friday. It changed hands at 1110.62 yen in Tokyo late Friday.
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