Asia Markets
DoCoMo, Toyota buoy Tokyo stocks
S.Korea, Taiwan also jump on tech-buying
By Mariko Ando, CBS.MarketWatch.com
Last Update: 11:32 PM ET Jan 27, 2002
TOKYO (CBS.MW) - Tokyo stocks kicked off the week sharply higher, with automaker Toyota and mobile giant DoCoMo leading the way following market-friendly announcements.
By midday Monday, the Nikkei Average had gained 159.60 points, or 1.6 percent, to 10,303.74. The broader also Topix rose 1.5 percent to 1,000.98.
Investors flocked to Toyota Motor's (TM) (7203) shares, which were up 2.2 percent at 3,680 yen. Japan's top automaker said after the market closed Friday that it would spend as much as 150 billion yen to buy up to 45 million of its own shares by the end of March.
NTT DoCoMo (NTDMY) (9437) also drew positive attention after announcing last Friday that it would carry out a 5-for-1 share split and list its shares in New York and London to boost liquidity and increase its investment opportunities. See full story. DoCoMo, the most heavily capitalized stock, rallied 6.5 percent to 1.47 million yen.
Banking issues also rebounded. UFJ Holdings (8307) jumped 3.7 percent to 251,000 yen, snapping a five-day losing streak. Still, shares have fallen 15 percent this month.
Mizuho Holdings (8305) rose 1.6 percent to 249,000 yen, after losing 500 yen, or 17 percent, in the last seven trading days.
On the other side of the ledger, Sony (SNE) (6758) dropped 1.9 percent to 6,080 yen. After the market closed Friday, Sony posted better-than-expected earnings for the latest quarter, thanks to a weak yen and solid sales gains for its game business. The company also revised up its forecasts for group sales and operating profit in the full fiscal year through March. See full story.
Analysts said Sony's bullish earnings report had already been factored into the market.
McDonald's Japan (MCD) (2702), Japan's largest restaurant chain operator, sank 2.5 percent to a record low of 2,780 yen. The company, which depends heavily on food imports, is under heavy pressure amid the yen's weakness against the dollar and lingering fears about the so-called "Mad Cow disease."
Mc Donald's Japan currently has a roughly 64 percent share of Japan's hamburger market and generates about 20 percent of worldwide sales, excluding the United States.
Yen climbs against the dollar
Tokyo's stock rise helped the yen bounce back from initial weakness. Yen buying was also fueled by comments from Bank of Korea Governor Chon Chol Hwan that a weak yen may hurt South Korea's economy.
"While the economy is expected to recover this year, there are still many uncertainties in carrying out policy" including the yen's decline, Chon said, Bloomberg reported. A weak yen makes South Korean exports less competitive.
The yen fetched 133.75 per dollar by late morning, against 134.33 in New York late Friday. The yen has fallen nearly 2 percent against the dollar this month.
S.Korea, Taiwan jump
Other markets in the region also advanced, ignoring a mixed performance on Wall Street last Friday.
In South Korea, the benchmark Kospi added 1 percent to 782.44 points by late morning trade.
A market focus was Hynix Semiconductor (HXSDY) which had been in alliance talks with Micron Technology (MU). The world's third- and second-ranked memory chipmakers failed to reach agreement in the latest round of their tie-up talks. See full story.
Hynix's shares gained 1.2 percent to 2,510 won.
Samsung Electronics advanced 0.2 percent to 323,500 won as its stock options made their debut on the main exchange. Six other blue chips which listed their options are: SK Telecom (SKM), KT Corp, Korea Electric Power (KEP), Pohang Iron and Steel (PKX), Hyundai Motor (HYMLY) and Kookmin Bank (KKBKY). See full story.
Taiwan's key Weighted Index gained 1.4 percent to 6,035.58, boosted by a rally for the chipmakers.
Most active Winbond Electronics (WBEMF) rallied 6.9 percent to NT$27.90, helped by expectations for a recovery in the sector. Powerchip Semiconductor (PWSCF) also saw attention, jumping 5.7 percent to NT$31.30.
Taiwan Semiconductor Manufacturing (TSM) was steady at NT$92. The world's foundry leader on Friday posted fourth quarter earnings of T$0.26 per share, meeting market expectations. See full story. Technology issues gained ground in Singapore, lifting the Straits Times Index by 2.2 percent to 1,769.25 points -- its highest level since March 2001.
Creative Technology (CREAF) rallied 5.4 percent to hit a one-year high of S$21.60. Chartered Semiconductor Manufacturing (CHRT) rose 2.1 percent to S$4.94.
New Zealand's NZ Top 40 was trading down 0.1 percent at 2121.42.
The Australian stock market was closed Monday for the Australia Day holiday. |
