|
Nikkei, Hang Seng rebound
|
 |
July 31, 2000: 11:16 p.m. ET
Tokyo stocks cling to gains by midday; Hang Seng index rises on HSBC results
|
NEW YORK (CNNfn) - A rebound in U.S. tech stocks overnight boosted key Asian stock indices on Tuesday.
The Tokyo equity market remained on the plus side by midday, reacting positively to Nasdaq's 2.8 percent rebound, but traders said the recovery did not look deep-rooted as the market was still worried about Japan's economic outlook and an expected rise in company failures this year.
Hong Kong stocks also opened in the positive column on Tuesday on the back of HSBC Holdings' 28 percent leap in net interim profit.
Taiwan stocks were mostly higher in early trading, and shares of world microchip foundry leader Taiwan Semiconductor Manufacturing was up T$1.50 at T$128.50 after beating analysts' forecasts Monday with a 133 percent year-on-year surge in first-half profits. Five minutes into the trading, the Weighted index was up 60.88 points, or 0.75 percent, at 8,175.80.
South Korean stocks climbed slightly as Samsung Electronics and other semiconductor issues followed U.S. tech stocks higher. The main KOSPI index rose 0.29 percent to 707.99, for a gain of 2.02 points, and Samsung Electronics stock was up 1.86 percent at 300,500.
Singapore shares opened strong, extending the reversal in the previous day after falling in the past seven days. The key Straits Times index rose 0.85 percent, or 17.42 points, to 2,068.63 after almost one hour trading.
Tokyo stocks cling to gains
The benchmark Nikkei 225 average ended the morning up 230.79 points or 1.47 percent at 15,958.28.
Many stocks that have been sold heavily in the past week such as real estate firms and banks attracted buying, while some high-tech issues gained ground after the nearly three percent rise in the U.S. technology-laden Nasdaq composite index
Recent falls in the Nasdaq index have been weighing heavily on local high-tech shares.
News that Japan's ruling coalition had decided not to alter the terms of the sale of Nippon Credit Bank (NCB) to a consortium led by Internet investor Softbank Corp. was another positive factor, helping to reduce uncertainty over Japan's banking system, traders said.
The Nikkei, however, failed to claw back above the 16,000 level it slipped off last Friday.
The capital-weighted TOPIX index of all shares listed on the Tokyo Stock Exchange's first section rose 14.56 points or 1.00 percent to 1,467.71.
"The rebound came in due course after the negative factors surrounding Japan's financial system had been factored into share prices," said Masatoshi Sato, manager at Kankaku Securities' equity trading information department.
"But concerns over possible failures of companies as big as Sogo are still intact and the strength of the economy in the latter half of this year is still in doubt," he said.
Japan's banking regulators earlier this month said they would delay for one month, until September 1, the transfer of NCB after politicians urged a review of the deal following the bankruptcy of major department operator Sogo Co.
But the decision to leave the terms of the NCB sale unchanged eased concerns that the pace of banking sector reform would be slowed by political wrangling and helped bank shares higher.
Asahi Bank stock jumped 6.51 percent to 409 yen, and shares of Sanwa Bank rose 3.41 percent to 910 yen.
In the currency market, the U.S. dollar lost value against the Japanese yen at the start of the Tokyo business day Tuesday.
The 9 a.m. local time quote on the Tokyo Foreign Exchange has the dollar at 109.26 yen, down 0.26 yen from the end of the previous business day in Tokyo.
Hang Seng rises on HSBC results
The Hang Seng index was 0.99 percent or 167.25 points higher at 17,008.23 at 10:08 a.m. local time.
"The market has fallen 1,400 points in the last few days so I think we've hit bottom for the time being and should be heading higher," said David Harman, institutional sales manager at Typhoon Eight Research Ltd.
Many analysts expect the index to hit 17,200 later in the day.
HSBC jumped to HK$105 straight after opening but eased to HK$103.50, up 0.98 percent, after 10 minutes' trade.
The global banking group sprung a surprise 28 percent rise in interim pre-tax profits to US$5.206 billion after the market closed on Monday. The results were driven by a fall in bad debt charges and 15 percent revenue growth, exceeding analysts' expectations for earnings of between US$4.20 billion and US$4.78 billion.
HSBC's 62 percent owned subsidiary Hang Seng Bank also posted robust net profits, up 21.9 percent in the first half year to HK$5.195 billion, mainly due to a sharp reduction in debt provisions, the bank said.
Hang Seng's net interest income declined as its interest margin narrowed due in part to stiff competition in the residential mortgage market.
"There's a lot of competition in the banking sector and the bank's recovery is quite slow so I'm not too bullish on this stock," said George Chan, senior analyst at Kwai Hung Securities.
Hang Seng Bank was up 0.93 percent at HK$81.50 in early trade.
Australian stocks claw back
Australian stocks opened slightly higher on Tuesday as solid Nasdaq gains gave investors the confidence to wade back into the technology sector, but falls in banking stocks offset the gains.
The S&P/ASX 200 index rose 2 points, or 0.06 percent, to 3253.1.
Shaw Stockbroking dealer Jamie Spiteri said the Nasdaq rise had given the investors the confidence to plunge back into the technology sector after Monday's falls.
"What happens in that area is going to be influenced by what happens around the world and particularly in the U.S., so it is no surprise for us to follow a similar sort of trend," he said.
Solution 6 gained 14 cents to A$3.12 (US$1.81), Sausage Software advanced seven cents to A$2.42, and Melbourne IT gained 29 cents to A$8.70.
News Corp. also gained 45 cents to A$21.35, and Cable & Wireless Optus climbed eight cents to A$5.09.
However, the gains were tempered by a fall in many banking stocks. Australia and New Zealand Banking Group fell five cents to A$12.96, while Westpac Banking Corp. declined seven cents to 12.20.
Spiteri said it was no surprise banks dropped after Monday's strength and as attention turned to other sectors of the market.
Total market turnover was A$125 million. Reflecting the mixed nature of the market -- many investors are on the sidelines until the outlook for monetary policy becomes clearer -- gainers outnumbered decliners by a ratio of nearly two to one. 
- from staff and wire reports
|
|
|
|
|
 |
|
