Sun, Dec 07, 2003 page10

• Asian stocks rise on export optimism

  BOOSTING OPTIMISM A number of Asian exporters gained on optimism that consumers in the US would start buying more imported goods during the holidays

  • BLOOMBERG
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  Asian stocks rose this week, lifting Morgan Stanley Capital International's Asia Pacific Index toward its best week in eight. Toyota Motor Corp and BHP Billiton gained after reports including a US manufacturing index boosted optimism that demand for Asian exports will rise.

  The Nikkei 225 Stock Average had its biggest weekly advance in two months, while Australia's S&P/ASX 200 Index had its best week in eight.

  The MSCI Asia Pacific Index gained 2.9 percent this week. The index, which measures more than 800 stocks in the region, climbed 28 percent in the past six months on optimism about a US-led global economic recovery.

  "The US economy is going strong and exporters in Japan and the rest of Asia can continue to reap benefits, which is a plus for their shares," said Hiroshi Uchida, who helps manage the equivalent of US$16.5 billion in mutual fund assets at UFJ Partners Asset Management Co in Tokyo.

  Semiconductor-related shares such as Taiwan Semiconductor Manufacturing Co advanced on signs of rising demand. Japanese lenders such as Mizuho Financial Group Inc advanced after a government takeover of Ashikaga Bank Ltd.

  National Australia Bank Ltd led that country's lenders higher after comments from the central bank raised optimism about the strength of the economy.

  Japan's Nikkei rose 2.7 percent in the past five days to 10,373.46, its best performance since the week ended Oct. 3.

  Toyota, Japan's biggest automaker, surged 4.9 percent to ¥3,450 this week. It derives 80 percent of its operating profit from North America. Nissan Motor Co, Japan's third-largest automaker, gained 1.8 percent to ¥1,275. The company gets two-thirds of its revenue overseas.

  Australia's BHP Billiton, the world's largest miner, climbed 2 percent to A$11.50. It relies on the US for more than a 10th of its sales. South Korea's Hyundai Motor Co, whose exports account for more than half of its sales, added 0.7 percent to 45,900 won.

  A Japanese government report showed companies there were more optimistic about the economy in the fourth quarter, for the first time in almost three years, as growth in overseas shipments fueled profits. Government figures also showed that South Korean exports surged 23 percent in November from a year earlier.

  Taiwan Semiconductor Manu-facturing Co, the world's biggest supplier of made-to-order chips, rose 2.4 percent in the past five days to NT$65.

  The company makes almost 60 percent of its sales outside Taiwan.

  Japan's Tokyo Electron Ltd, the world's second-largest maker of semiconductor production equipment, on Monday said orders this quarter may climb from the July-to-September period.

  Later the same day, the California-based Semiconductor Industry Association reported global semiconductor sales rose 23 percent in October.

  Tokyo Electron jumped 4.3 percent to ¥8,080 this week.

  Singapore's Chartered Semiconductor Manufacturing Ltd, the world's fourth-biggest supplier of made-to-order computer chips, gained 2.5 percent this week.

  Chip-related shares pared some of their gains Friday after an Intel Corp fourth-quarter sales forecast missed some analysts expectations.

  South Korea's Samsung Electronics Co, the world's second-largest semiconductor maker after Intel, shed 2.9 percent this week.

  Shares of Mizuho, Japan's largest bank by assets, added 0.7 percent to ¥288,000. UFJ Holdings Inc, the nation's No. 4 bank, climbed 4.9 percent to ¥491,000.

  The government said last Saturday it would take over Ashikaga, a lender that was unable to repay its debt. The takeover underscored Japan's effort to restore the health of the nation's financial industry.

  "Long-term, it is a good thing as further evidence that the problems of the financial system are being tackled," said Jeremy Hall, who helps manage about US$3.5 billion in Japanese equities at Henderson Global Investors Ltd in Tokyo.

  Banks also lifted Australia's S&P/ASX 200 Index by 1.4 percent, its biggest weekly advance in eight. National Australia Bank Ltd, the country's biggest lender by assets, climbed 3.7 percent to A$29.99. Australia & New Zealand Banking Group Ltd, the nation's No. 3 lender, rose 2.6 percent to A$17.26.

  The Reserve Bank of Australia on Wednesday raised its target for the overnight cash rate a quarter percentage point to 5.25 percent. Interest rates at these levels still had a "stimulatory effect" on the economy, which had "strengthened considerably," the central bank said.

  "There's still underlying growth in the economy," said Hans Kunnen, who helps manage US$56 billion at Sydney-based Colonial First State Investments, the biggest fund manager in Australia. The comments indicate "a stronger financial system," which is positive for banks.
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