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HK back above 10,000
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March 1, 1999: 5:16 a.m. ET
Optimism on economy gives Hang Seng another lift; Tokyo left on the sidelines
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LONDON (CNNfn) - A mixed performance in Asia Monday was dominated by the Hong Kong market. Support for property stocks and HSBC pushed the Hang Seng index through the 10,000 barrier. In contrast, the mood in Tokyo remained somber.
Japan's blue-chip share index, the Nikkei 225, ended Monday's session down 1.01 percent at 14,221.75. Some brisk early buying by overseas institutional investors had helped buoy the index, before jitters about the direction of both the domestic and U.S. economies set in.
The continued unwinding of corporate cross-holdings among Japanese firms, ahead of the fiscal year-end on March 31, is one of the key factors that has ensured the Nikkei has stayed within a narrow band of 14,000 to 14,500 over the last two weeks. The weakening of the dollar against the yen also continued to play on sentiment.
Hi-tech stocks were worst hit, feeling the after-effect of the bearish mood toward computer stocks on Wall Street.
One of the biggest losers among blue chips was Nikon Corp., which saw 8.73 percent wiped off the value of its shares, to close the day at 1,515 yen. The stock has had a strong run in recent weeks.
Other losers, included NEC Corp. and Toshiba Corp., which both gave up 2.9 percent to close at 1,163 and 714 yen, respectively. The two companies lost ground after rival semi-conductor manufacturer Samsung of Korea, said it would raise capacity by 20 percent. The two Japanese chip makers are currently cutting capital expenditure.
Winston Barnes, head of sales trading at WestLB Securities in Tokyo, said the pressure on chip makers will prove to be a temporary glitch. "Most of the market likes semiconductors," he told CNNfn.
In Hong Kong, in contrast, the mood was lifted by expected good news on the economy. The budget is due Wednesday. The upbeat sentiment lifted the Hang Seng through the 10,000 point level and it closed at 10,020.46, up 162 points, 1.6 percent.
The market last broke through this milestone on January 21. "I think it's mainly that the Hong Kong economy is not looking as bad as it once did. People are more optimistic about Wednesday's budget address," Raymond Sung, institutional sales trader at Seapower Securities, told Reuters.
Support for property stocks, which have performed well in recent sessions on expectations of government land disposals and hopes that Walt Disney (DIS) will site its latest theme park in the colony, gave some impetus to blue chips. Yet more buying of index heavyweight, HSBC Holding, was also responsible for lifting the index. The bank's shares rose HK$5 to close at HK$223.
Elsewhere in the region, the markets were mixed. Singapore firmed in late trading to finish up 0.77 percent at 1,422.85.
Korean blue chips continued their rally, surging a further 4.19 percent to close at 520.06. A stronger yen against the dollar helped drive sentiment.
Bangkok was also up strongly, closing 2.49 percent higher at 340.94.
Sydney's All Ordinaries ended Monday up 1.1 percent at 2,911.1 after investors went bargain hunting after last week's losses.
Jakarta was up slightly, gaining 0.06 percent to end at 396.325.
Kuala Lumpur was the biggest casualty in Asia Monday, shedding 1.97 percent to close at 531.54.
In Manila, the Composite index ended only slightly off, down 0.04 percent at 1,964.27.
Taiwan's blue chips gave up 0.1 percent, finishing at 6,312.25.
-- from staff and wire reports
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