Asian Stocks: Japan Rises Led by Exporters, Banks; Australia, Korea Gain
Tokyo, March 12 (Bloomberg) -- Japanese stocks rose as
investors stepped up holdings after more than 1 billion shares
traded yesterday for the first time in six months. Sony Corp. and
other exporters climbed as a rally in U.S. stocks boosted hope
for robust markets for their goods.
The Nikkei 225 average rose 167.08, or 1.1 percent, to
15,669.87, its seventh day of gains in eight. Sakura Bank Ltd.
and other lenders also climbed on expectation they will be able
to write off non-performing loans. The Financial Reconstruction
Commission will today approve a 7.5 trillion yen ($62.8 billion)
investment into 15 banks.
''This kind of volume shows people finally have confidence
buying in this market and confidence in Japan,'' said Kazunori
Jinnai, deputy general manager at Daiwa Securities Co.'s equity
division. ''Foreign as well as Japanese institutional investors
are buying, and individual investors are back.''
In other markets, Australia's All Ordinaries index rose 0.7
percent, spurred by gains by commodity producers and a robust
profit report from Telstra Corp. New Zealand's Top 40 index rose
0.7 percent as New Zealand largest company Telecom Corp. ended
four days of declines ahead of a final payment on the company's
installment receipts. South Korea's Kospi Index rose 1 percent on
signs of retail investors returning to the market.
Overseas strategists are more bullish on Japan. Barton
Biggs, chief investment strategist at Morgan Stanley Dean Witter
& Co. speaking on CNBC said the Nikkei could rise another 12
percent to 15 percent this year, reaching 17,000 or 18,000.
Merrill Lynch's & Co. chief investment strategist, Charles
Clough, on Wednesday increased the percentage of Japanese stocks
in his firm's model global portfolio.
Foreigners were net buyers of Japanese stocks on Japan's
three exchanges for the seven weeks ending March 5, the Tokyo
Stock Exchange said. Since then, they have been net buyers at the
open daily, including this morning.
Sony, which sells a third of its products in the U.S., rose
2.5 percent to 11,180 yen. Toshiba Corp. gained 3.2 percent to
844 yen.
Sakura Bank added 2.2 percent to 327 yen. Bank of Tokyo-
Mitsubishi Ltd., the nation's largest bank, rose 2.7 percent to
1,520.
Nissan Motor Co. fell for a fourth day, sliding 2.9 percent
to 402 yen after DaimlerChrysler AG, the world's fifth-biggest
carmaker, said it won't take a stake in Japan's No. 2 automaker
after three months of negotiations because of Nissan's heavy debt
burden. After yesterday's market close, Moody's Investors Service
cut Nissan's long-term rating to junk.
Australia
Australia's All Ordinaries index rose 18.90 to 2969.40,
after hitting a record high. Broken Hill Proprietary Co. led
gains, on hopes that Australia's largest resources company's new
Chief Executive Paul Anderson can improve the company's future
earnings.
Paul Anderson's ''attempt to change the culture of the
organization is good for investors going forward,'' said Adrian
Mulcahy, head of equities at IOOF Investment Management Ltd.,
which oversees A$200 million (US$126 million) in Australian
equities. ''I really like the market where it is now, 3,000
doesn't seem far away.''
BHP, Australia's largest resources company, rose 1.7 percent
to A$12.87. Telstra Corp., the dominant telephone company, rose
1.0 percent to A$8.87. The company's profit for the six months to
Dec. 31 rose 12 percent to A$1.81 billion, compared to the A$1.76
billion average forecast in a survey of five analysts by
Bloomberg News. Its first-half mobile sales rose 17 percent to
A$1.24 billion.
''Telstra's result was good, with revenue from mobiles
impressive,'' said Robert Vanderzeil, head of institutional
trading at HSBC Securities Australia Ltd. ''There has been a
gradual transfer of funds into cyclical and resource sectors
because of the better oil and gold prices and steadier metal
prices.''
New Zealand
In New Zealand, the Top 40 index rose 8.15 to 2145.16, ahead
of the final payment of Telecom Corp.'s installment receipts.
''The NZ$1.8 billion to pay the final installment for
Telecom has to be raised and that's either coming out of the
shares in the market or people are selling some the Telecom
shares to fund that,'' said Peter Lynds, a broker at Cavill White
Securities.
Telecom Corp., which accounts for about a third of the Top
40 index, rose 0.7 percent to NZ$9.20. The final NZ$4.15 payment
on the company's installment receipts is due by the end of the
month.
Stocks such as the Warehouse Group Ltd., the largest
discount retailer, and Progressive Enterprises Ltd., the No. 2
ranked supermarket operator, rose as investors favored stocks
expected to perform well as the economy recovers.
Signs of a domestic economy recovery ''are certainly helping
the retail stocks,'' Lynds said.
Warehouse rose 1.4 percent to NZ$7.50. Progressive rose 1.4
percent to NZ$2.15. Warehouse is expected to report a more-than
41 percent rise in first-half profit next week, while Progressive
yesterday said first-half profit rose 52 percent.
Korea
The Kospi rose 5.63 to 587.63, as growing customer deposits
at brokerages signaled increasing individual investor interest in
equity investments. Deposits at securities firms have risen for
the past nine days to total 4.9 trillion won ($4 billion), a rise
of almost 1 trillion won this month.
Samsung Electronics Co., the world's largest chipmaker, rose
0.5 percent to 86,800 won. Korea Electric Power Corp. gained 1.7
percent to 30,500 won.
Companies involved in the ''big-deal'' business swaps fell
after the Maeil Business newspaper quoted Daewoo Group chairman
Kim Woo Jung as saying agreement on his company's plan to swap
its electronics arm, Daewoo Electronics Co., for Samsung Group's
auto arm, is still ''far off''.
Daewoo Electronics fell 1.8 percent to 5,330 won.
In other markets:
Malaysia's 100-stock Kuala Lumpur Composite Index fell 0.1
percent to 522.95. Stocks were mixed on concern diversified
companies such as Amsteel Corp. are struggling to find ways to
repay debt. Construction stocks rose on expectations the
government's move to stimulate the economy will include greater
spending on construction projects. Amsteel fell 2.9 percent to
0.34 ringgit. United Engineers (Malaysia) Bhd., a construction
company, gained 3.2 percent to 1.94 ringgit.
Singapore's Straits Times Index rose 0.9 percent to 1485.30,
led by Singapore Telecommunications Ltd., on expectations a
management overhaul will help the island state's dominant phone
company cope with competition. SingTel gained 1.7 percent to
S$2.43.
Taiwan's TWSE index rose 0.2 percent to 6454.46, as U.S.
stocks extended their gains into record territory, suggesting
robust growth in the world's largest economy will help boost
earnings at Taiwan Semiconductor Manufacturing Co. and other
computer-related makers. TSMC gained 0.6 percent to NT$90.
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