Sun, May 25, 2003 - Page 10 News List

Asian indexes get needed boost

LOOKING UP The TWSE saw its biggest jump since the middle of last month, while Japan, Korea, and Hong Kong advanced on optimism about the American economy

BLOOMBERG , TOKYO

The US is Taiwan's second-largest export market after China. Hon Hai Precision Industry Co, a computer cable connector maker, added 1.3 percent to NT$114. Taiwan Semiconductor Manufacturing Co, the world's largest maker of computer chips on a subcontracting basis, advanced 2.3 percent to NT$49.10.

Some investors also bought shares on optimism prices already reflect concern about severe acute respiratory syndrome and the outbreak would soon be controlled.

"A recovery in the US economy provides a brighter outlook for Taiwan's exports in the second half of this year," said Simon Chao, who manages US$17 million at President Investment Trust Corp. "SARS is already under control in Hong Kong and Singapore, so it's likely that Taiwan will soon be able to control the outbreak."

The government said it has 10 new probable cases of SARS and no new deaths. The newest cases bring the island's total to 548.

Singapore's Straits Times Index rallied 1 percent to 1318.14, its third gain in four session. The benchmark's futures contract climbed 0.9 percent to 1317.

United Overseas Bank Ltd, the island's No. 2 lender, added 1 percent to S$10.60. DBS Group Holdings Ltd., the island's largest bank, rose 1.1 percent to S$9.40. They were the biggest gainers on the index.

In Australia, the S&P/ASX 200 Index advanced 1.1 percent to 2997.70. The benchmark had its first weekly gain in four, rising 1.6 percent. The key index's futures contract due in June rose 1.2 percent to 2992.

News Corp jumped 3.6 percent to A$11.51. BHP Billiton, the world's largest miner, rose 1.8 percent to A$8.62. The company makes 85 percent of its sales outside Australia. Both stocks were two of the three most active by value.

Singapore ships about a fifth of its products to the US.

Australia's counts the US as its largest trading partner.

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