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Asia mixed, banks fall
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July 3, 2000: 6:06 a.m. ET
Japan rises on telecom strength, HK slips; banks weaken on rate outlook
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LONDON (CNNfn) - Asian markets were mixed on Monday, with banking stocks across the region weaker amid expectations Japan's central bank was poised to raise interest rates from zero.
In Japan, the Nikkei average of 225 stocks jumped 203.61 points, or 1.2 percent, to close at 17,614.66, with telecom stocks advancing on a report that Japan and the United States were likely to resolve a dispute on Nippon Telegraph and Telephone's call connection charges.
Hong Kong's benchmark Hang Seng index slipped 30.81 points, or 0.2 percent, to close at 16,124.97, led by Hang Seng Bank and telecom giant China Mobile.
In Singapore, the Straits Times index rose 32.84 points, or 1.6 percent, to end the session at 2,070.81, led by chipmaker Chartered Semiconductor after its U.S.-traded shares jumped on Friday.
Australia's S&P/ASX 200 slipped 3.1 points, or 0.1 percent, to 3,308.1, with National Australia Bank down 2.3 percent and Commonwealth Bank declining 1.8 percent, almost offset by a gain of more than 1 percent for the world's fifth-largest media firm News Corp.
In the U.S. Friday, the Nasdaq composite index rose 88.88 points, or 2.3 percent, to 3,966.11, and the Dow Jones Industrial Average climbed 49.85 to 10,447.89.
In the currency market Monday, the yen traded at ¥106.2 against the U.S. dollar, little changed from ¥106.08 in late trading in the U.S. Friday.
In Japan, Nippon Telegraph and Telephone soared 5.7 percent after the Yomiuri Shimbun newspaper said Japan and the United States were likely to agree that NTT cut the rates it charges rivals to link to its local lines. Other telecom stocks to rise included Japan Telecom, up 3.7 percent, DDI, which rose 4.9 percent and mobile-phone giant NTT DoCoMo, up 2 percent.
Sony takes stake
Railway and cable television operator Tokyu jumped 6.3 percent, extending Friday's gain, after consumer electronics giant Sony agreed to pay ¥10 billion ($95 million) for a stake in the company's Tokyu Cable Television unit.
Sony rose 4.4 percent after saying it agreed with Matsushita Electric Industrial and Toshiba to extend their existing cooperation agreement in digital satellite broadcasting. Matsushita gained 2.4 percent and Toshiba climbed 2.9 percent.
Bank stocks weakened amid expectations the Bank of Japan's "tankan" business sentiment survey will confirm Japan's economic recovery, possibly prompting the central bank to end its zero interest-rate policy. Sakura Bank fell 4.1 percent, Fuji Bank declined 3 percent, Bank of Tokyo-Mitsubishi lost 4 percent and Sanwa Bank shed 2.6 percent.
In Hong Kong, banking stocks slipped on the prospect of higher interest rates and a slowdown in the economy. Hang Seng Bank, Hong Kong's second-largest, fell 0.7 percent, and British-based HSBC Holdings slipped 0.3 percent.
Telecom stocks came under pressure. China Mobile, the largest mobile-phone company in China, slid 1.4 percent and CCT Telecom fell 2 percent.
Pacific Century CyberWorks slipped 2.6 percent after shareholders of Cable & Wireless HKT approved PCCW's takeover of the company. Cable & Wireless fell 1.4 percent.
Property stocks surged on proposals by the territory's Chief Executive Tung Chee-hwa to scrap government targets to increase public flats by 85,000 a year, a move that should help demand for private housing. New World Development jumped 5.7 percent, Sun Hung Kai Properties rose 1.8 percent and Cheung Kong gained 1.2 percent.
In other markets, the KLSE index in Kuala Lumpur plunged 4.7 percent as shares worth about $4 billion, which were suspended during the Asian financial crisis in September 1998, began trading again.
Jakarta's JSX lost 2.2 percent and Bangkok's composite SET index also slipped 2.2 percent.
Heading in the opposite direction, Taiwan's Weighted index gained 0.4 percent, the Kospi index in Seoul climbed 1.7 percent and Manila's PHS Composite edged up 0.1 percent. 
--from staff and wire reports
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