Tokyo stocks mostly flat by midday
Exporters helped by signs of U.S. recovery; Asia rises
By Mariko Ando, CBS.MarketWatch.com
Last Update: 11:44 PM ET Jan 24, 2002
TOKYO (CBS.MW) - Fed Chairman Alan Greenspan's upbeat remarks about the U.S. economy lifted Japanese exporters on Friday, but signs of deflationary pressure in Japan hurt banks and retailers. While it was a wash for Tokyo's stock index, other Asia markets such as Seoul and Taipei were rose on Greenspan's speech and Wall Street's gains.
In Japan, the Nikkei Average ended the morning at 10,071 points, down 3.05 points or 0.03 percent. The broader Topix was steady at 979.95 points.
Major banks slid as investors feared the country's deteriorating economy will make it more difficult for them to carry out efforts to clean up their bad loans.
On the data front, Japan's key nationwide consumer prices dropped 0.8 percent in 2001 for the second successive year of declines, highlighting concerns of continuing deflationary pressure on the world's second-biggest economy.
Following the release of the data, economic and fiscal policy minister Heizo Takenaka said that the data "confirms a slight deflation in the country's economy."
Rising concerns over Japan's economic health fueled selling of the yen, sending it to a fresh 39-month low against the dollar. The yen fetched 134.91 per dollar, against 134.70 yen in New York late Thursday. The Japanese currency has fallen nearly 2 percent against the dollar this week.
Banks extend losses; weak yen lifts exporters
Sumitomo Mitsui Banking (8318) tumbled 3.8 percent to 476 yen. It earlier fell as low as 474 yen, its lowest point since the mega-bank's birth last April. Mizuho Holdings (8305) dropped 3.4 percent to 245,000 yen. UFJ (8307) was down 4.7 percent at 243,000 yen.
Investors stayed away from debt-ridden lenders amid fears that the country's deteriorating economy would create more corporate bankruptcies, consequently increasing financial institutions' unrecoverable loans.
Ito-Yokado (IYCOY) (8264), Japan's largest retailer, dropped 4.8 percent to 4,580 yen after the government released data showing Japan's consumer prices posting their biggest drop in 30 years last year. Seven-Eleven Japan (SVELY) (8183) lost 3.5 percent to 3,920 yen.
Meanwhile, leading technology issues such as Sony (SNE) (6758) and Canon (CAJ) (7751) continued to attract buyers after the Nasdaq gained 1.1 percent, buttressed by a better-than-expected earnings results by Nokia (NOK).
Exporters got a lift from signs that the U.S. economy is on the road to recovery. Fed Chairman Greenspan said the U.S. economy began showing signs of recovery, triggering hopes for a recovery in demand.
Shares of Sony rose 1.5 percent to 6,170 yen, ahead of a release of its third quarter business results after the market closed today. Canon climbed 2.3 percent to 4,390 yen. Honda Motor (HMC) (7267) gained 1.7 percent to 5,430 yen.
Seoul extends rally; chipmakers lift Taiwan market
In Seoul, the benchmark Kospi gained 2.7 percent to 778.29 points by late morning, building on the previous day's 18-month closing high.
Korea Exchange Bank (50063210) jumped 2.1 percent to 5,420 won, after the Finance Ministry said it would sell the state's stake in the bank depending on the market situation.
The Ministry of Finance and Economy also plans to sell 51 percent of Cheju Bank to Shinhan Financial Group (SFHLY) in the first half of this year. Shinhan's shares climbed 4.2 percent to 19,700 won.
The move is part of the government's efforts to sell its stakes in the financial industry, many of which became nationalized following the Asian financial crisis.
Chipmakers gained ground amid hopes that a recovery in the U.S. economy would boost exporters' profits. Samsung Electronics, the world's top maker of computer memory chips, rallied 4.4 percent to 323,500 won. The third-biggest chipmaker Hynix Semiconductor (HXSDY), which is currently in alliance talks with U.S. Micron Technology (MU), advanced 0.4 percent to 2,610 won.
Technology issues rallied in Taipei, where the Weighted Index climbed 2.2 percent to 5,931.45 by mid morning. The index has gained 7.4 percent so far this week, boosted by hopes that the new cabinet would help restore confidence in the ailing economy.
Market sentiment was also lifted by signs of easing tension between Taipei and Beijing. On Thursday, China signaled a softer line, saying only a small number of the island's pro-independence ruling party members were separatists.
Chinese Vice Premier Qian Qichen said members of Taiwan President Chen Shui-bian's Democratic Progressive Party were welcome to visit the mainland, and called for renewed dialogue and stronger economic ties across the Taiwan Strait, according to a Reuters report.
The world's foundry leader Taiwan Semiconductor Manufacturing (TSM) rose 1.1 percent to NT$91.50. TSMC will release fourth-quarter business results later today.
TSMC's smaller rival United Microelectronics (UMC) gained 2.5 percent to NT$48.50. The company has agreed to build a $1 billion semiconductor factory in China, said a Bloomberg report, citing an executive at the industrial park where the plant is to be built.
Hong Kong's Hang Seng Index opened up 84.79 points, or 0.8 percent, at 10,826.25.
Australia inches up ahead of long weekend
Australia's All Ordinaries Index added 0.3 percent to 3,382.80 points by early afternoon.
Investors were reluctant to trade actively ahead of a long holiday. Australia's stock market will be closed next Monday for the Australia Day holiday.
Shares of News Corp. (NWS) jumped 1.5 percent to A$13.92, buoyed by rising hopes for a recovery in the U.S. economy.
The Wall Street Journal reported that Chase Carey, a longtime top lieutenant to News Corp. chief Rupert Murdoch and chief architect of corporate strategy, had resigned. Behind the decision was Carey's inability to find a new role for himself at the company after its failed efforts to acquire satellite broadcaster DirecTV, the report said.
Mining giant BHP Billiton (BHP) lost 0.7 percent to A$11.43. The world's largest diversified miner said its fourth-quarter copper production fell 18 percent to 221,600 tones from the same quarter in 2000. Iron ore output, however, increased 6 percent.
New Zealand's NZ Top 40 was trading 0.2 percent higher at 2,124.21 points in early afternoon trade. Market heavyweight Telecom NZ (NZT) fell 0.2 percent to NZ$5.40.
Singapore's Straits Times Index gained 2.2 percent to 1,698.75 points and Malaysia's KLSE Composite advanced half a percent to 689.28 points by mid morning. |
