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Tokyo dips, stays over 20K
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March 2, 2000: 6:15 a.m. ET
Asian markets mixed as Japan hovers near 31-month high, HK rises
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LONDON (CNNfn) - Tokyo's leading stock index ended narrowly lower Thursday, shedding earlier gains inspired by the latest record-breaking performance by the U.S. Nasdaq. Among mixed returns on other Asian markets, Hong Kong's leading gauge finished half a percent higher as a spurt in China Telecom offset Cable & Wireless HKT's latest decline.
In Tokyo, the benchmark Nikkei Average of 225 leading shares ended down 16.56 points, less than 0.1 percent, at 20,065.11 a day after the index edged to its highest close in nearly three years. Corporate investors continued to unwind cross-shareholdings in the run-up to the end of the business year on the last day of March. Dealers said they expected the Nikkei to trade in a tight range around the 20,000 mark until the book settlings at the end of the month, with Wall Street's galloping high-tech issues likely to lend support.
"The market's mid- to long-term outlook is very bullish with the help of the Nasdaq," Hiroshi Sato, equities manager with Cosmo Securities in Tokyo told Reuters. "The Nikkei will inevitably be hit by profit-taking along the way, but we think it's in the process of building support at the 20,000 level."
In the broader market, losers outstripped decliners 712 to 566, with 119 stocks holding steady.
The bellwether Hang Seng index in Hong Kong closed an erratic session 0.55 percent, or 93.22 points, higher at 16,936.81 as investors hedged their bets while awaiting more news about Pacific Century CyberWorks' proposed merger with telecom operator Cable & Wireless HKT. Other traders were seen staying on the sidelines before three initial public offerings in the high-tech "new-economy" sector.
The Straits Times Index in Singapore closed down a marginal 0.2 percent at 2,110.17 as interest-rate worries crept into the market, offsetting strong gains in electronics stocks sparked by the Nasdaq's overnight jump. The index's leading gainer, Singapore Computer Systems, soared almost 16 percent after parent company SembCorp Industries said it's selling its stake in the firm.
Australian stocks sailed to another record close Thursday, buoyed by a rally in media giant News Corp. and strength in oil prices, which leapt to nine-month highs overnight amid renewed concern over pipeline supplies. The All Ordinaries index closed up 27.4 points, or 0.9 percent, at 3,220.0 after earlier hitting a fresh intraday high of 3,228.3. News Corp., which accounts for about 16 percent of the benchmark index, rallied almost 5 percent, propelled by fund-linked buying and reports that the company may be eyeing Canadian drinks and entertainment group Seagram.
On Wall Street, the Nasdaq Composite on Wednesday surged 87.39 points, or almost 2 percent, to 4,784.08, its third record in five sessions. The Dow Jones industrial average gained 9.62 points to 10,137.93, adding slightly to a two-day advance that pared its big drop last week. The broader S&P 500 rose 12.77 points, or almost 1 percent, to 1,379.19.
In currency markets, the dollar bought 107.03 yen late Thursday, slightly below its level in late New York trading Wednesday of 107.19. The dollar remains well shy of its highs above the 110 level achieved Wednesday.
The euro was trading at $0.9716, a touch below $0.9722 late Wednesday as traders stood by to see whether the European Central Bank will hike interest rates at its Thursday policy meeting. Talk of an increase intensified following supportive comments from Germany's finance minister.
On the corporate front, technology issues ended mixed in Tokyo after investors turned to mild selling late in the session. Consumer electronics company Sony Corp. slipped 1 percent to close at 32,200 yen. Electric machinery maker Hitachi Ltd. tumbled 5.8 percent after a Japanese business daily reported the company's group net earnings for the full year would be 15 billion yen - less than half Hitachi's most recent forecast of 35 billion yen.
Mitsubishi Heavy Industries ended almost 6 percent lower at 271 yen, extending Wednesday's sharp fall, after the company increased its forecast of expected annual losses. The company had made the revision late Tuesday after markets had closed in Tokyo.
Telecom heavyweight NTT Corp. firmed 1.3 percent, while its mobile subsidiary NTT DoCoMo crept up 0.2 percent.
In Hong Kong, Cable & Wireless HKT closed down 2.2 percent at HK$22.25, extending Wednesday's steep slide as investors continued to digest details of its tie-up with Internet start-up Pacific Century CyberWorks. PCCW shares ended up 1.5 percent at HK$20.70.
China Telecom jumped 4.3 percent to HK$73.00. The rally outpaced an overnight rise of 2.75 percent in the company's American Depositary Shares. Investors were also reportedly awaiting an initial public offering of shares in Hongkong.com Corp., an Internet portal and unit of Chinadotcom Corp. The portal is scheduled to debut on March 9 on Hong Kong's Growth Enterprise Market.
Also stirring buying interest in the wider market was Chinese computer maker Legend Holdings, which rallied 28 percent on news that it had formed an alliance with PCCW aimed at developing broadband services and content in China.
Among the region's smaller markets, the weighted index in Taiwan closed down 1.5 percent at 9,543.82 amid frayed nerves ahead of a presidential election set for March 18 and tensions with mainland China.
The benchmark Kospi index in South Korea surged 8 percent to close at 894.66 amid brisk buying of electronics shares by overseas investors.
Kuala Lumpur stocks gave up nearly 3 and Jakarta's main index ended down 3.4 percent amid government plans to sell an 8.8-percent stake in heavyweight Telkom. But Manila shares advanced nearly 1 percent, as local investors snapped up blue chips seen as undervalued such as Philippine Long Distance Telephone Co. Thai stocks sprinted up more than 5 percent amid brisk buying of banking and financial-service shares. 
--from staff and wire reports
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