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Trust fever tugs Tokyo higher
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February 7, 2000: 5:46 a.m. ET
Japanese stocks rise on Nasdaq gains, investment trust excitement
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LONDON (CNNfn) - Tokyo's leading stock index closed higher Monday amid hopes that a series of new investment trusts will drive up the values of select blue chips being eyed for inclusion in the funds. Japanese shares also received help from Wall Street, where the tech-dominated U.S. Nasdaq marked its fifth straight day of gains.
Equity markets in Hong Kong, Taiwan, Singapore, and Malaysia were all closed Monday for the Chinese Lunar New Year holidays.
The benchmark Nikkei Average of 225 leading components closed up 182.30 points, or 0.9 percent, at 19,945.43, helped by a 0.8 percent rise on the tech-laden U.S. Nasdaq Friday. The Nasdaq finished at a record 4,244.13. Local traders attributed the buying momentum to high hopes for a series of new investment funds which are expected to pump extra liquidity into Asia's largest stock market.
Daiwa Asset Management plans to kick off a major new fund this week with a ceiling of 300 billion yen. The fund will concentrate on stocks perceived to be under-priced.
Technology stocks drew support from the sector's strong showing in New York Friday. Local traders told Reuters they expect the Nikkei to trade in a range from 19,500 to 20,300 this week, though some believe last week's brief foray by the Nikkei above 20,000 for the first time in 30 months may have been premature.
Among telecoms, NTT Docomo, the mobile phone subsidiary of Nippon Telegraph and Telephone, closed 2 percent higher at 3.84 million yen. Britain's Sunday Business newspaper reported the company is mulling a $35 billion bid for Orange after the U.K. mobile firm is jettisoned by Vodafone AirTouch following its tie-up with Mannesmann. NTT Docomo had no comment.
Among auto shares, Nissan Diesel Motor Co. gained 4.9 percent to 107 yen after Fuji Bank said Friday it and other main creditor banks had agreed to extend a 200 billion yen, four-year credit line to the financially embattled truck-making firm. Nissan Diesel is owned by Nissan Motor Co. and France's Renault.
Sony Corp., seen as a hot candidate for inclusion in many of the new investment trusts, climbed 2.7 percent to 29,980 yen, while Toshiba advanced 2.2 percent to 850 yen. Sumitomo Metal Mining surged 12 .4 percent after gold prices rocketed to the highest level since October last year. Pacific Metals soared 25.1 percent.
In currency markets, the dollar firmed slightly against the yen, quoting at 108.45 yen Monday afternoon in Tokyo, compared with a level of 107.16 yen late Friday in New York.
In Seoul, the benchmark Kospi ran up more than 2 percent to end at 973.13, as investors with funds exposed to uncollateralized Daewoo Group bonds were able to redeem certificates linked to the bonds. Many investors feared fund managers would have to lighten their exposure to the market to meet their redemptions. The trusts began last week to redeem 95 percent of the Daewoo-linked certificates currently in the hands of corporate and private investors.
The Australian blue-chip All Ordinaries finished half a percent higher at 3,130.4, with gold miners stealing the thunder from strong bank and media shares as bullion prices shot as high as $32 an ounce.
"The gold rush is on today with a big intraday jump for gold as well,"
Hartley Poynton broker Dirk Van der Struyf told Reuters.
Normandy Mining, which represents about 29 percent of the bullion index's total value, barreled up 12 percent, Newcrest Mining gained almost 10 percent and Lihir Gold raced up nearly 21 percent.
Elsewhere across the Pacific rim, Manila shares eased a few points to close at 2,005.58 as traders ignored stronger-than-expected 2.6 percent inflation in the year ended in January. Jakarta stocks ended up 0.2 percent at 636.42 as worries over a political power struggle brewed. Thai shares edged 0.3 percent higher amid demand for banking and telecom issues. 
--from staff and wire reports
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