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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (18226)	4/16/2002 7:08:53 AM
From: elmatador	Respond to of 74559

Asia Sails on Tide of Economic Optimism Apr 16 3:23am ET By Bill Tarrant SINGAPORE (Reuters) - Japan's stocks, ignoring a humiliating downgrade of the country's debt, cruised to a higher close Tuesday and other Asian markets were buoyed by optimism their corporate flagships were sailing on fresh economic breezes. Ratings agency Standard & Poor's downgrade of Japan's sovereign debt ratings -- giving it the lowest credit rating of the Group of Seven economies -- briefly rocked the yen. But as anticipated, the yen soon recouped the lost ground. "I think they're pointing out the risk factors in the Japanese economy, including the bad loan problem and restoration of fiscal discipline," Economics Minister Heizo Takenaka said. At 6:30 a.m. GMT, the yen was trading around 131.51 to the dollar, while the euro was little changed at 0.8805 to the dollar. Dealers said the market would sit tight ahead of U.S. Federal Reserve Chairman Alan Greenspan's testimony to Congress Wednesday and a weekend Group of Seven meeting. The emerging debt market steamed ahead after China announced it would tap global markets for sovereign debt issues in 2002. The market had been wallowing a bit over the Japanese debt downgrade and uncertainties in the oil market. Investors are likely to clamber aboard any sovereign offering from Beijing, given the scarcity of such assets in fast growing China, analysts said. "SUPER TUESDAY" Asia's institutional investors basically dropped anchor on Tuesday, awaiting a slew of U.S. earnings reports due out later in the day, which Wall Street has dubbed "Super Tuesday." Upbeat earnings forecasts in the U.S. technology sector helped lift the tech-sensitive Nikkei average 1.88 percent higher to 11,346.66 in subdued trade. "Earnings from big shots such as Intel and Motorola are just ahead of us. That's making it very difficult for us to take action," said Takehiko Takachio, senior portfolio manager at Kokuasi Asset Management. Australian shares closed higher, basking in local economic strength and the prospects of a gradual, rather than a quick, rise in interest rates. The benchmark S&P/ASX200 index closed 0.55 percent higher at 3,386.6, led by heavyweight News Corp, Woolworths, the banks and mining giants. South Korea's market cruised higher, piloted by blue chips such as Samsung Electronics, the world's largest memory chipmaker, ahead of its expected record first-quarter earnings due Friday. The benchmark KOSPI closed 0.78 percent higher at 901.29. INTEREST RATE HIKE The Korean bond market, however, sputtered after the central bank governor signaled interest rate hikes were in the offing to forestall any overheating in an economy expected to grow 5-6 percent this year. China's hard currency B shares fell Tuesday over renewed concern that Beijing would soon allow its citizens to invest in the Hong Kong Stock market. At 0615 GMT, the Shenzen B share index was off one percent. Hong Kong's key share index was little changed at midday as investors awaited the outcome of Wall Street's "Super Tuesday," which could give fresh direction to global equities. U.S. blue chips fell Monday as lingering disappointment over General Electric Co.'s earnings helped drive the Dow average to a seven-week low. The Dow Jones industrial average slid 0.95 percent to 10,093.67, while the tech-loaded Nasdaq edged down 0.14 percent to 1,753 in slow volume ahead of Tuesday's earnings reports. Oil prices edged lower awaiting key U.S. fuel stocks data while eyeing progress at getting Venezuela's oil operations back to normal after President Hugo Chavez regained power. Benchmark U.S. light crude for May slid 10 cents to $24.47 a barrel in Asia, below Monday's $1.10-rally in New York.