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Nikkei rises to 3-year high
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April 12, 2000: 6:21 a.m. ET
Economic report pushes Tokyo index higher, but tech concerns linger
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LONDON (CNNfn) - Major markets across Asia rose Wednesday, with signs of economic recovery in Japan lifting Tokyo's main index to its highest level in more than three years. But valuation concerns about tech issues kept gains on other top markets in check, following another big drop on the U.S. Nasdaq.
Tokyo's benchmark 225-share Nikkei average rose 310.69 points, or 1.5 percent, to close at 20,833.21, its highest level since December 1996. The Bank of Japan said Wednesday the recession-bound economy has recovered in some areas, most notably in the corporate sector.
Hong Kong's Hang Seng index rose 0.5 percent and Singapore's Straits Times index added 0.2 percent.
U.S. technology stocks set a negative tone Tuesday. The Nasdaq composite index tumbled another 3.2 percent, while the Dow industrials added 0.9 percent.
In the currency market Wednesday, the dollar fell to ¥106.52 from ¥107.11 in late U.S. trade Tuesday. The euro was quoted at $0.9591, little changed from its value in New York the previous day.
Japan Net stocks under pressure
Leading automakers rebounded Wednesday after setbacks in recent sessions: Honda Motor rose 5.3 percent and Mazda Motor added 6.4 percent.
Telecommunications equipment maker Iwatsu Electric Co. jumped 21 percent on reports the company is poised to launch products together with U.S.-based counterpart Lucent Technologies (LU: Research, Estimates).
Japan's Internet sector weakened again. Net investor Softbank slid 4.9 percent and rival Hikari Tsushin fell by its daily limit to 39,800. The mobile phone subscription agency and Internet investor has fallen 83 percent from its intra-day peak of 241,000 yen set on Feb. 15.
Internet portal Yahoo! Japan was 5.8 percent lower, while technology bellwether Sony fell 1 percent.
PCCW rallies Hong Kong
In Hong Kong, real estate, insurance and airline company Swire Pacific soared 8.7 percent as analysts reported continuing interest in traditional blue-chip companies with solid earnings.
Internet upstart Pacific Century CyberWorks was halted in midday trading down 1.9 percent and closed at that level before it announced an alliance with the Australian telecom operator Telstra. The Australian company's shares rose 1.6 percent. Shares of planned merger partner Cable & Wireless HKT, Hong Kong's largest telecom operator, jumped 13.6 percent on the news.
China's largest PC maker, Legend Holdings, shed 3.3 percent, continuing its fall of recent days after soaring last week on news it was creating a new Internet company.
China Telecom fell 2.7 percent amid concern it will announce high one-time charges when it reports 1999 earnings Thursday.
In other markets
Sydney's All Ordinaries index fell 0.7 percent. Trading was light following the Nasdaq's tech troubles, but banking shares were generally higher.
Taiwan's TAIEX index fell 1.6 percent, with high-flying electronics shares especially hard hit. And South Korean telecommunications shares also fell, with the benchmark Korea Composite Stock Price Index off 2.1 percent in late trading.
The Set 50 in Bangkok rose 3.3 percent, Kuala Lumpur's KLSE Composite dropped 0.7 percent and Jakarta's JSX index fell 0.8 percent. Manila's PHS Composite shed 0.7 percent. 
-- from staff and wire reports
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