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Asia rises on tech gains
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May 31, 2000: 6:07 a.m. ET
Hong Kong surges 5.2%, Japan edges higher as Nasdaq sparks tech demand
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LONDON (CNNfn) - Asia's major stock markets mostly closed sharply higher Wednesday as the previous day's record performance on the U.S. Nasdaq composite inspired investors to drive technology shares up.
Hong Kong's Hang Seng index closed almost 5.2 percent higher at 14,713.86, with index heavy weight China Telecom leading gains. Asia's leading index, the Nikkei 225 average in Tokyo, rose 103.55 points, or 0.6 percent, to 16,332.45.
 The KOSPI index in South Korea rocketed 5.9 percent, helped by conglomerate Hyundai Group's announcement of a program to restructure by selling assets and booting some of its founders off the board of directors. Korea's tech-laden Kosdaq index soared 10.4 percent, its second-largest one-day percentage gain.
But the buoyant mood in most markets didn't spill over to Singapore, where Straits Times index edged down 0.2 percent to 1,795.13.
In the U.S. Tuesday, the Nasdaq composite rocketed 254.26 points, or 7.9 percent, to 3459.48, its biggest one-day percentage gain on record. The blue-chip Dow Jones industrial average jumped 227 points, or 2.2 percent, to 10527.13.
In the currency market Wednesday, the dollar edged up to ¥106.62 from ¥106.54 in late New York trading Tuesday.
Soaring telecoms in Hong Kong
In Hong Kong, telecom firms stole the limelight. China Telecom surged 11 percent to HK$58.25, telecoms conglomerate Hutchison Whampoa jumped 8.7 percent, CCT Telecom rose 4.4 percent and Cable & Wireless HKT jumped 5.7 percent.
In the Internet arena, Pacific Century CyberWorks climbed 2.8 percent. Computer maker Legend Holdings leapt 6 percent to HK$7.90.
Property shares rebounded after recent sell-offs, spurring a 5.8 percent gain for developer Sun Hung Kai Properties.
In Toyko, mobile-phone service provider NTT DoCoMo rose almost 3 percent after tumbling the previous two days. The rebound came after France Telecom agreed to buy Orange, the U.K.'s third-largest mobile phone company, easing concerns DoCoMo might bid for the U.K. company in an offer that would call for it to issue new shares. DoCoMo's parent Nippon Telegraph and Telephone rose 3.3 percent, while Japan Telecom leapt 2.4 percent and DDI Corp gained 1.85 percent.
High-tech shares mostly closed higher, but below their peaks for the session as investors baled out at higher prices. Toshiba rose 1.7 percent and NEC jumped 3.4 percent.
Internet shares were mixed, as Softbank sank 8.4 percent after a consortium led by the Internet investment company missed a second deadline to buy Nippon Credit Bank Wednesday. Fellow Net investor and mobile phone subscription firm Hikari Tsushin rose 5.6 percent.
JAL sees profit dive
Shares in Japan Airlines, Asia's largest carrier, extended the previous day's decline with a fall of 6 percent after forecasting its profit in the year ending Mar. 31, 2001 would fall 34 percent to ¥13 billion because of high fuel prices and intense fare competition. It reported a smaller-than-expected 26 percent decline in net profit for the latest full year 26 percent to ¥19.74 billion as income from the sale of used planes dwindled.
Rival Nippon Airways fell 0.8 percent.
In other markets, Taiwan's Weighted index added 2 percent, with leading semiconductor stocks powering the market higher. Computer chip maker Taiwan Semiconductor jumped 4 percent.
Australia's S&P/ASX 200 index rose 1 percent on renewed interest for technology shares and easing interest-rate concerns. Rupert Murdoch's News Corp., which represents 12 percent of the index, rose 5.6 percent to A$19.81. Cable & Wireless Optus, Australia's second-largest telecom operator, gained 31 cents to A$4.79.
Bangkok's SET index jumped 5.9 percent and Manila's PHS composite added 0.6 percent, but Jakarta's JSX index remained immune to the enthusiasm for equities that gripped much of the region, falling 2.5 percent. 
-- from staff and wire reports
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