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Techs drive Tokyo gains
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July 15, 1999: 5:30 a.m. ET
Nasdaq's record close lends support to Nikkei; HK bounces as Taiwan factor recedes
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LONDON (CNNfn) - Brisk demand for high-tech stocks buffered Japanese stocks against a selling bias Thursday and gingerly nudged the blue chip average the blue chip average nearly half a percent higher, to a 22-month high. Hong Kong shares recovered from a weak morning session to end 1.35 percent higher as the market began to discount Taiwan-China tensions.
Singapore shares eased nearly 1 percent while Seoul stocks surged 3 percent after comments by the country's finance minister that the Korean economy is not overheating.
In Tokyo, the benchmark Nikkei 225 average finished up 0.4 percent, or 74.00 points, at 18,431.86, its highest close since September 10, 1997. But the upward momentum stalled a bit as investors sold off other big-name blue chips.
Technology stocks were the major beneficiaries of Thursday's gains as overseas investors sought to shore up underweighted positions, and after the U.S. Nasdaq Composite index raced up 40 points overnight to a record 2,817.89. The Dow Jones industrial average slipped almost 27 points, to 11,148.10.
The technology sector has been on a tear in Tokyo since Wednesday, when a Morgan Stanley analyst added Matsushita Electric Industrial company to his list of top-40 competitive-edge companies. But Matsushita's rally fizzled Thursday as the company lost 1.06 percent to close at 2,790 yen. Another tech trailblazer, TDK Corp. also gave up ground, slipping 1.38 percent to 12,850 yen.
But other tech issues bucked the downtrend as institutional cash singled out a handful of favorites. Internet investor Softbank Corp. added 9.43 percent to 34,800 yen. The Japanese company unveiled plans to shuffle its portfolio of investments Thursday to more closely concentrate on Internet projects
Fujitsu Ltd. gained 7.61 percent to 3,180 yen, while Nikko Securities added 10.64 percent. The firms intend to launch their joint online brokerage in January 2000, the companies revealed Wednesday. Yahoo! Japan closed up 4.04 percent at 51.5 million yen a day after the Internet search engine reported a significant gain for the latest quarter, and announced a 2-for-1 share split on Nov. 19.
Japan's Big Three banking houses - Nomura Securities, Daiwa Securities and Nikko Securities - all achieved year-highs during Thursday's session.
In Hong Kong, the Hang Seng overcame morning session jitters to end up 1.35 percent, or 183.32 points, at 13,758.89. Local traders said the market had already factored in a host of worries from Taiwan's decision to abandon its "One China" policy, to uncertainty over bad debt in Argentina and talk of a devaluation of the yuan.
Banking stocks ended mostly higher following news of a government plan to allow greater overseas competition in the banking sector and to deregulate interest rates. The new rules are seen as a spur to modernization for small and medium-sized banks.
HSBC Holdings closed up HK$0.25 at HK$96.500, while Hang Seng Bank advanced HK$2.00 to HK$85.250. Bank of East Asia was unchanged at HK$19.000.
The sole loser on the Hang Seng - Hysan Development slipped Hk$0.10 to HK$11.450.
In Taiwan, the weighted index closed up 0.37 percent at 7.918.04, although it is still off about 7 percent since the war of words with China erupted over the weekend. For the year, however, Taiwan's market is up 20 percent.
Last weekend, Taiwan's president dropped his nation's adherence to a "One China" policy that long served as the diplomatic glue holding their respective relations together, however tenuously. The action prompted furious officials in Beijing to threaten force to stamp out any independence drive in Taiwan.
Reversing earlier gains, Singapore's Straits Times Index was down 0.96 percent at 2,178.63 in late trade.
Australia's All Ordinaries ended up 0.35 percent at 3,065.0, supported by strong bank stocks. But activity was tempered by anxiety ahead of the U.S. consumer price data due out later Thursday.
Philippine shares closed a third of a percent higher despite lingering concerns that interest rates may rise.
Trade was subdued in Jakarta as investors awaited the outcome of ballot-counting in last month's parliamentary elections. The Indonesian blue chip gauge slipped 0.65 percent, to 664.882, as speculation the government may increase domestic energy rates fed the hesitant mood.
Kuala Lumpur eased 0.75percent, extending earlier losses, despite gains by recently restructured companies such as the conglomerate Renong.
In Thailand, the SET index was up 0.5 percent.
--from staff and wire reports
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