LONDON (CNNfn) - Hong Kong's blue-chip equity index soared more than 4 percent Thursday as investors piled back into telecom stocks, encouraged by the record close on the tech-heavy Nasdaq Composite index in New York.
Asia's other markets were mixed, with auto stocks helping Tokyo to close narrowly ahead while weak banking shares hit Singapore. India was the region's other star performer, as the blue-chip index in Mumbai rose more than 3 percent on firm buying of tech shares,
Australia and Korea lost ground as the weaker performance by U.S. blue chips and further hints of tighter monetary policy by U.S. Federal Reserve Chairman Alan Greenspan left investors cautious.
In Tokyo, the benchmark Nikkei 225 index ended just 0.27 percent higher at 19,571, some 120 points below its session peak, as technology and auto shares made modest gains.
Hong Kong's Hang Seng index surged through the 17,000 mark to close 682 points higher at 17,058.66. Investors swept up telecom stocks on the prospect of takeovers and advances in trade talks between China, the European Union and the United States.
The Straits Times index in Singapore, the region's best performer Wednesday, lost 0.66 percent to end at 2,123.67 after disappointing GDP growth numbers for 1999.
In the currency markets, the dollar gave up some of its recent advance, falling to 110.99 yen from 111.51 in late New York trade.
Tech shares were lifted by a broad rally in technology stocks Wednesday that sent the Nasdaq soaring 3.84 percent to a record close of 4,550.33, breaking a two-session losing streak. However, blue chips weakened following Greenspan's remarks, and the Dow Jones industrial average lost 0.8 percent to close at 10,225.73. The broader S&P 500 added 0.6 percent to end at 1,360.69.
In Hong Kong, China Telecom vaulted 11.3 percent to account for almost half of the Hang Seng's advance. Cellular operator TVB rose 8.1 percent and takeover candidate Hong Kong Telecom rose 5 percent. Bellwether bank stock HSBC Holdings added 2.3 percent and Cheung Kong (Holdings) added 2.9 percent as the property sector extended recent gains.
In Tokyo, Internet investor Softbank Corp. was the best performer, closing up 5.7 percent after reaching agreement to acquire ailing Nippon Credit Bank for 101 billion yen ($910 million). However, its consortium partners, Orix Corp. and Tokio Marine & Fire Insurance, both closed narrowly lower.
Auto stocks fared well after January production numbers revealed a cut in output, diluting some of the overcapacity that has hit profits over the past year. Nissan Motor made the strongest advance, closing up 7.2 percent, while market leader Toyota Motor ended 1.6 percent higher.
The Nasdaq's advance helped lift cellular firm NTT DoCoMo by 0.7 percent while sector rival Kyocera climbed almost 5 percent, buoyed by Merrill Lynch's "buy" recommendation on the shares.
In Singapore, the market was weakened by a 2.8 percent decline in leading bank DBS Group, while United Overseas Bank shed almost 4 percent. Investors pulled back from the market after 1999 GDP growth came in at 5.4 percent, at the lower end of expectations.
Among smaller markets, Mumbai's BSE 30 rose 3 percent to end at 5,811.70 as institutional investors jumped back into tech shares.
Weak commodity stocks depressed the All Ordinaries in Sydney, which ended 0.18 percent lower at 3,106.90. Taiwan's tech-heavy Weighted index failed to follow Nasdaq's advance, ending off 0.43 percent at 9,599.17 as political tensions with China continued to unnerve investors.
Thailand's Set continued to rebound from its 7 percent slump Tuesday, rising 1.57 percent to end at 395.10.
The JSX in Jakarta ended 1.87 percent lower at 573.49, the PHS Composite in Manila was the region's weakest market, ending 1.9 percent lower at 1,794.81, while the KLSE Composite in Kuala Lumpur closed fractionally higher at 1,009.53. 
-- from staff and wire reports
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