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Nikkei firms, HK surges
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April 22, 1999: 5:12 a.m. ET
Tech and export-related stocks boost Nikkei; HK surges on rate cut hopes
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LONDON (CNNfn) - Tokyo shook off domestic concerns with a late rally to finish Thursday's session over 1 percent higher, while Hong Kong surged on anticipation of an interest rate cut Friday.
All bar one of Asia's markets were firmer on the back of a strong performance on Wall Street Wednesday, which saw the Dow Jones industrial average bounce back to another record close after a short, sharp sell-off earlier in the week. The Nasdaq composite also recovered, climbing more than 3 percent.
The Nikkei 225 index staged a mini-rally in afternoon trading. Chemical stocks led the way, adding to the rise in tech and export-related stocks earlier in the session. Domestic-related issues continued to feel the effects of Wednesday's gloomy prognosis for Japan's economy by the IMF.
Chemical stocks were resurgent in the afternoon session. Shin-Etsu Chemicals closed almost 8 percent higher at 3,800 yen, while Takeda Chemical Industries rose just under 5.5 percent to 5,230 yen.
Most tech stocks enjoyed a strong session, buoyed by further weakness of the yen versus the dollar, which should boost export-related earnings. NEC Corp. added over 6 percent to end at 1,326 yen and Fujitsu put on 4.2 percent to finish at 2,200 yen. Canon Inc. was up 4.7 percent at 2,895, Sharp Corp. put on 4.1 percent to 1,385 and Pioneer Electronics jumped 5.8 percent to 2,200.
Domestic-oriented stocks were weaker, in particular the steel and paper sectors. Nippon Steel Corp. shed 3.6 percent to 268 yen and Kobe Steel fell by a similar amount to close at 105 yen.
Outside the blue chip index, Japan Telecom surged over 10 percent to 1,680,000 yen on reports that partners British Telecommunications (BT.A) and AT&T (T) were planning to take a combined 30 percent stake
Hong Kong's Hang Seng index rallied strongly in late trading to push the index 3.1 percent higher at the close to 12,933.54, a jump of almost 400 points.
Telecom stocks led the way on the back of increased interest in Asian carriers. HK Telecom rose almost 7.5 percent to HK$20.15. Index heavyweight HSBC Holdings gained over 2 percent to close at HK$284.
Elsewhere, Sydney's All Ordinaries closed 1.63 percent higher at 3,118.3, led by the banking sector and the rally on Wall Street.
South Korea was the only decliner in the region. The Kospi fell for the second successive session as worries of a showdown with militant unions and a possible rise in interest rates sparked further selling. The leading index plunged just under 3 percent to 740.40.
Elsewhere, the markets were firmer. Philippine blue chips closed up 1.1 percent at 2,338.41, while Taiwan's Weighted index ended up 20 points at 7,494.60.
Singapore's Straits Times index lost some steam in late trading and was less than 1 percent higher at 1,859.92, while in neighboring Kuala Lumpur blue chips surged towards the end of the session, up almost 2.5 percent at 632.04..
Thailand's Set index was 1.65 percent higher at 404.50 and Jakarta's leading shares were up just 3 points at 483.69.
-- from staff and wire reports
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