Japanese stocks rose this week, led by brokerages such as Nomura Holdings Inc, after Daiwa Securities Group Inc posted its first profit in three quarters on increased equity trading and sales of foreign-currency bonds. \n"Huge trading volumes have been benefiting most brokerages," said Katsuaki Furutachi, who helps manage the equivalent of US$3.4 billion at Asahi Life Asset Management Co in Tokyo. "The market seems to be on an upward trend and it will continue to boost their profitability." \nThe Nikkei 225 Stock Average gained 1.3 percent for the week to 9648.01, rising for the third week in four. \nThe Topix index advanced 1.3 percent to 945.28. Computer-chip makers such as Toshiba Corp and NEC Corp gained after sales forecasts by Texas Instruments Inc prompted Lehman Brothers Holdings Inc to recommend buying semiconductor stocks. \nSouth Korea's Kospi index gained 0.8 percent to 705.09 this week, led by Posco. The world's fourth-largest steelmaker surged after its board decided to increase dividend payments and cancel some stock. \nIn Taiwan, the TWSE index ended the week 2 percent higher at 5394.75. Hon Hai Precision Industry Co and other companies with Chinese factories led gains on a Chinese-language newspaper report the Beijing government proposed a free-trade agreement with Taipei. \nElsewhere in Asia, Hong Kong's Hang Seng Index fell 2 percent to 9939.20. China Mobile (HK) Ltd and other telecommunications companies led the drop after Credit Suisse First Boston cut its rating on Motorola Inc, sparking concern about industry growth. \nUS gains \nIn the US yesterday, stocks rallied as the biggest gain in durable goods orders since January buoyed optimism economic growth will prolong the market's rally. Cummins Inc, the world's largest maker of high-powered diesel engines, led the advance after its quarterly profit unexpectedly increased. \nThe Standard & Poor's 500 Index added 17.08, or 1.7 percent, to 998.68, for the biggest gain in almost three weeks. \nAll 30 stocks in the Dow Jones Industrial Average rose as the benchmark had its biggest jump in almost six weeks. \nThe Dow rose 172.06, or 1.9 percent, to 9284.57. The NASDAQ Composite Index gained 29.28, or 1.7 percent, to 1730.70 Nomura Holdings Inc, Japan's largest brokerage, advanced 4.6 percent to Japanese Yen 1,650 this week. Nomura will report earnings on Thursday. Daiwa Securities gained 3.7 percent to Japanese Yen 709. \nDaiwa Securities, Japan's second-largest brokerage by sales, almost doubled its first-quarter profit as a 14 percent gain in the quarter for the Nikkei boosted trading activity. \nProfit also rose as Japanese investors bought Japanese Yen 7 trillion more overseas bonds than they sold in April and May, more than double their net purchases a year earlier. \nNikko Cordial Corp, Japan's third-largest brokerage, gained 4.2 percent to Japanese Yen 527. Nikko said yesterday that first-quarter profit rose threefold, boosted by bond trading and a doubling of the firm's stock underwriting fees. \nToshiba gains \nSemiconductor-related shares rose, pacing gains on the Nikkei and Topix. Toshiba, the world's third-largest chipmaker by sales, rose 7.8 percent to Japanese Yen 485. NEC, the world's sixth-largest chipmaker, jumped 8.6 percent to Japanese Yen 783. \nThe shares gained after Texas Instruments Inc, whose chips powered half the mobile phones sold last year, said sales this quarter may rise by 11 percent. Daniel Niles and Joseph To, analysts at Lehman, raised their rating on the stock. \nPosco jumped 9 percent this week to 140,000 won after its board decided on Wednesday to raise dividends and cancel 21 percent of the company's shares. \nThe steelmaker said Thursday that profit tripled in the second quarter to its highest in three years because of rising demand from builders and carmakers in South Korea and China. \nKookmin Bank, the nation's largest lender, gained 5.5 percent to 42,000 won this week on optimism earnings may improve in the second half as fewer people default on credit-card payments. \nSouth Korea's Financial Supervisory Service said in a report that the combined ratio of payments overdue for more than a month at the nation's nine major credit-card companies declined to 9.7 percent in June from a record 11.7 percent in May. \nTaiwan, Hong Kong \nCompanies in Taiwan with business links to China advanced after a Chinese-language newspaper reported over the weekend that China's government proposed a free-trade accord with Taiwan. Under the free-trade agreement, businesses in Taiwan will find it easier to start up businesses in China. \nHon Hai Precision, a computer-cable connector maker with factories in China, gained 8.1 percent to NT$161 this week. \nQuanta Computer Inc, which makes notebook computers near Shanghai for clients such as the US-based Dell Inc, jumped 11 percent to NT$87.5. \nChina Mobile, China's biggest mobile-phone company, fell 6 percent to HK$19.75. China Unicom Ltd, Hong Kong's No. 2 cell-phone company, ended the week 5.3 percent lower at HK$5.35. \nThe shares fell after Tim Long, an analyst at Credit Suisse First Boston, cut his rating to "underperform" from "neutral" on Motorola, the world's second-largest maker of mobile phones, saying the company may not meet this year's earnings estimates.
Polytronics Technology Corp (聚鼎科技) yesterday announced that it is buying Henkel AG’s thermal clad dielectric material (TCLAD) business division for US$26 million as the Taiwanese firm aims to improve its technology, product portfolio and revenue performance. Polytronics, headquartered in the Hsinchu Science Park (新竹科學園區), is a supplier of protection components and heat dissipation materials. The firm entered the metallic heat-dissipation substrate market in 2007 and developed a unique solventless production process. Its board of directors approved signing an agreement with Henkel to acquire the German chemical firm’s TCLAD division in the US. The purchase includes all assets and business interests, including equipment,
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
‘SENSITIVE MARKETS’: The previously unannounced project would involve the company handing over control of data to a third party to sidestep privacy concerns Google has abandoned plans to offer a major new cloud service in China and other politically sensitive countries due in part to concerns over geopolitical tensions and the COVID-19 pandemic, two employees familiar with the matter said, revealing the challenges for US tech giants to secure business in those markets. In May, the search giant shut down the initiative, known as “Isolated Region” and which sought to address nations’ desires to control data within their borders, the employees said. The action was considered a “massive strategy shift,” said one of the employees, who added that Isolated Region had involved hundreds of employees
GOGOROS TO GO: The scooter maker’s CEO said that the electric vehicles ‘are the perfect complement to a program designed to stimulate the Taiwanese economy’ Minister of Economic Affairs Wang Mei-hua (王美花) yesterday announced a draw to encourage people to claim their Triple Stimulus Vouchers digitally. The prizes include movie tickets and 25 electric scooters donated by Gogoro Inc (睿能創意), Wang said. The Ministry of Economic Affairs said that it would hold a scooter draw every day for the next 10 days, beginning yesterday, after which there would be a draw every week for 15 weeks. The first winner was a Taiwan Cooperative Bank (合庫銀行) credit card user, the ministry said. The benefits of claiming the vouchers digitally extend beyond the draws, with many businesses offering special deals for