Sun, Aug 01, 2004 page10

• IT optimism boosts Asian markets

  • AFP
  • • 
    • 
    • 

  Asian stock markets finished mostly higher on Friday as a tech led rebound on Wall Street cheered sentiment for the information-technology (IT) sector.

  Some positive earnings by Japanese companies and steady economic data helped lift the Nikkei 225 index by nearly two percent while an upbeat outlook for the semiconductor sector by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world's largest chip maker, helped boost stocks in Taipei by 1.33 percent.

  Australian shares also gained strongly on the back of mining firm Rio Tinto's strong interim results.

  On the downside Chinese shares weakened 1.52 percent as petrochemical stocks tumbled amid worries Exxon Mobil Corp would sell down its stake in Sinopec. Sinopec confirmed Exxon was now clear to dispose of its holding although it was unaware of any imminent plan to do so.

  Japanese share prices rose 1.88 percent on Friday following a rebound by technology stocks on Wall Street after a long slump and strong first quarter earnings from high-tech companies, dealers said.

  The broader market was also buoyed by the release of Japan's jobs data on Friday, which sparked active buy-backs of domestic demand-linked shares, dealers said.

  Japan's unemployment rate in June was 4.6 percent, unchanged from a near four-year low in May, the government said.

  It also announced that salaried household spending rose 4 percent year-on-year in the first quarter to June, the third straight quarterly rise, although it fell 1.3 percent in June itself.

  The Tokyo Stock Exchange's benchmark Nikkei-225 index gained 208.94 points to 11,325.78. The broader TOPIX index of all First Section shares added 17.64 points or 1.57 percent to 1,139.62. Volume was 1.06 billion shares.

  Matsushita Electric Industrial, the world's biggest consumer electronics company, announced a more than 12-fold jump in net profit to US$304 million in the April to June quarter on Thursday on robust sales of digital products.

  It followed buoyant earnings from other high-tech companies including Canon, Advantest, NEC and Mitsubishi Electric.

  "The strong first quarter by Matsushita Electric eased concerns over the trend of sales of digital products," Shinko Securities equity strategist Tsuyoshi Segawa said.

  South Korean share prices closed up but off their intraday highs as light profit taking emerged to cap technical-led gains, dealers said.

  The composite index closed up 4.73 points, or 0.64 percent, at 735.34, off a high of 741.32. Volume remained thin at 282 million shares worth 1.3 trillion won (US$1.1 billion dollars).

  "It's nothing more than a technical rebound," Daishin Securities analyst Yang Kyung-Shik said.

  Yang said a negative IT industry outlook, deterioration in stock demand-and-supply conditions and underlying concern about higher oil prices will continue to cast shadows over the bourse next month.

  Hynix Semiconductor fell 700 won to 9,000 on concern about possible falls in DRAM prices in the second half. Samsung SDI lost 1,500 to 109,500 on worries about weaker margins in coming quarters.

  Samsung Electronics, however, closed up 6,000 at 417,000 on modest bargain-hunting in line with its stronger US peers overnight.

  Hong Kong share prices closed 0.45 percent higher on hopes of strong first half results from major companies, but worries that local banks may raise interest rates soon pared some of the earlier gains, dealers said.

  The Hang Seng Index closed up 54.93 points at 12,238.03, off a low of 12,223.87.

  Bank of East Asia succumbed to profit-taking after its results announcement. The bank reported net profit rose 26.2 percent to HK$1 billion (US$100 million) in the first half due to a sharp drop in provisions. The stock closed down 0.7 at HK$22.10, after reaching a high of HK$23.

  "Selective buying of major stocks [that are] due to announce results next week has supported the index. But profit-taking in Bank of East Asia following its results and in property stocks, trimmed the gains," said Conita Hung, head of research at Delta Asia Securities.

  Hung predicted further downside for property shares in the near-term amid concerns that local banks are under pressure to raise interest rates.

  The TAIEX closed 1.33 percent higher on Friday, boosted by tech-led gains on Wall Street overnight and strong prospects for the semiconductor industry in the second half of the year, dealers said.

  The TAIEX closed up 70.91 points at 5,420.57 on turnover of NT$55.31 billion (US$1.62 billion).

  Chinese share prices closed 1.52 percent lower in Shanghai as petrochemical stocks tumbled amid worries Exxon Mobil Corp would sell down its stake in Sinopec, dealers said.

  The Financial Times reported last week that Exxon Mobil Corp is looking at selling at least part of its stake of 3.65 percent in Sinopec, Asia's largest refiner, through a placement on the market. Sinopec confirmed Exxon was now clear to dispose of its holding although it was unaware of any imminent plan to do so.

  The Shanghai A-share Index fell 22.38 points to 1,454.30 on turnover of 5.83 billion yuan (US$704.11 million) while the Shenzhen A-share Index was down 6.05 points or 1.62 percent at 366.31 on turnover of 3.72 billion yuan.

  The benchmark Shanghai Composite Index, which covers both A- and B-shares, closed down 21.13 points, or 1.50 percent, at 1,386.20 on turnover of 5.87 billion yuan.

  "Exxon has the right to sell it at any time now, as the lock-up period for its stake has already expired," said Sinopec's Beijing spokesperson Huang Wensheng.

  Australian share prices surged 1 percent in Sydney as the resource sector responded to strong interim results from mining giant Rio Tinto, dealers said.

  Austock Brokers private client adviser Peter Cuthbertson said the market was cheered by Rio Tinto's profit result after close of business on Thursday, when it said interim net profit rose 55 percent on the back of record iron ore demand from China.

  The SP/ASX 200 closed up 34.7 points at 3,536.1, while the All Ordinaries index closed up 33.5 points at 3,546.1. Market volume was 1.09 billion shares worth A$4.10 billion (US$2.87 billion).

  Singapore share prices closed flat as caution ahead of the weekend offset strong earnings reports from the city-state's two biggest banks, dealers said. The Straits Times index closed down 0.40 points at 1,891.71, while the All Singapore Equities index edged up 0.78 points to 496.57.

  Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.
• Most Popular

  • 1

    German warships to pass through Strait

  • 2

    Sino-Russian air patrol designed to counter US

  • 3

    Court orders Ko Wen-je’s detention

  • 4

    Ko Wen-je release quashed

  • 5

    Travel warning issued over CCP Xinjiang efforts