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Nikkei extends bull run
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March 17, 1999: 5:33 a.m. ET
Tokyo pushes on from 16,000; other markets flat as Dow fails to inspire
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LONDON (CNNfn) - Tokyo shares jumped nearly 200 points Wednesday, building on a bull run that has driven the Nikkei up more than 17 percent since the beginning of the year.
But elsewhere, Asia's major markets finished flat after the Dow's abruptly aborted foray into five-digit territory on Tuesday failed to inspire investors, many of whom cashed in on recent gains. Traders across the region came under selling pressure as regional markets hit key resistance levels.
In Hong Kong, where trading had been languid at the end of the morning session, shares clawed their way into the plus column by the close. The Hang Seng's blue chips edged up 0.26 percent, or 28.82 points, at 10.940.07.
China-backed red chips also surged after a Chinese business newspaper quoted the country's central bank chief as saying the bank may soon lower interest rates on yuan deposits.
Wall Street closed 28.30 points lower Tuesday at 9,930.47 after a brief incursion above the psychologically significant 10,000 level gave way to backpedaling.
Bargain hunters preferred Tokyo, where the Nikkei average bounced back from an early sell-off to close 1.22 percent, or 195.29 points, higher at 16,268.11.
The close marked the Nikkei's second straight day above the 16,000 barrier - a level it hadn't previously breached since last August. It was also the average's highest finish since July 31, 1998. More recently, hopes that a long-awaited recovery may be in sight for Japan's recession-wracked economy have driven the index steadily higher.
Nissan Motor Co. succumbed to a sell-off as investors reacted in tepid fashion to news that France's Renault (PRNO) is poised to acquire up to a 40 percent stake in the Japanese carmaker. The move would effectively give Renault veto power on Nissan's board.
But some traders soured quickly on the courtship, which seeks to ally two companies with starkly differing corporate cultures.
"It is like putting poison ivy and poison oak together: it is still poison," a trader at Daiwa Securities told Reuters.
Sumitomo Bank said it expected to reap a $200 million profit from a planned sale of shares in Goldman Sachs, the U.S. investment bank that unveiled detailed plans Tuesday to go public in a $3.5 billion offering.
Australian shares snapped a three-session string of closing highs as investors paused to lock in recent gains. The All Ordinaries index lost 14.4 points to close at 2,977.8. The index is up 98 points, or more than 3 percent, so far this month.
In Singapore, valuation concerns about large-cap stocks weighed on investor morale. The Straits Time index ended down 1.3 percent at 1,470.16 a day after index heavyweight DBS Land unveiled a loss of $239 million Singapore dollars ($139 million) and said it had set aside hefty provisions.
Korean stocks - up more than 22 percent since late February - were largely flat Wednesday. Taiwan's weighted index built on recent gains, advancing 1.27 percent as overseas stock funds continued to flock to the market.
Led by bank stocks, Manila shares rose a marginal 0.05 percent amid news that the Philippine central bank is considering a further reduction in reserve requirements to boost the economy.
Jakarta shares jumped more than 2 percent after Indonesia signed a letter of intent with the International Monetary Fund Tuesday. After dipping to a new 1999 low of 503.41 points amid international selling by the end of the morning session, Malaysian shares rebounded slightly to close flat at 511.85.
Thai shares, trading narrowly, notched up a 0.52 percent gain amid speculative buying.
--from staff and wire reports
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