Financials boost Nikkei
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August 23, 1999: 7:29 a.m. ET
Merger speculation helps lift Tokyo; Seoul surges on hopes of rating upgrade
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LONDON (CNNfn) - Asia's markets enjoyed a positive session Monday. Japanese blue chips were lifted by the planned $1.3 trillion bank alliance which outweighed concerns of the yen's continued strength against the dollar.
Tokyo's Nikkei 225 closed more than 135 points higher at 18,233.55, a rise of 0.75 percent, as banking shares soared. There were few signs of the expected caution ahead of the U.S. Federal Reserve meeting Tuesday, which is expected to result in a hike in U.S. interest rates.
All but one of the region's other markets moved higher following a bright end to the week on Wall Street Friday, where the Dow Jones industrial average rose 136.77 points, or 1.25 percent, to 11,100.61.
In Tokyo, the three banks at the center of the planned tie-up to create the world's biggest bank climbed sharply. Dai-Ichiu Kangyo Bank soared 19.82 percent to finish at 1,209, Fuji Bank gained 19.18 percent to 1,243 and the Industrial Bank of Japan rallied 18.45 to 1,284.
Other banking stocks soared on speculation of more consolidation and restructuring. Sakura Bank leapt more 17 percent to 674 yen, Tokai Bank jumped 14 percent to 809 yen, and Sanwa Bank surged 13.5 percent to 1,685 yen.
Hopes of consolidation also spread to the brokerage and insurance sectors. Daiwa Securities jumped more than 7 percent to 1,151 yen, while Mitsui Marine & Fire Insurance rocketed almost 16 percent to 730 yen.
But export-related blue chips suffered as the yen continued its rise against the U.S. dollar, trading around the $110.70 level, down about three-quarters of a yen from late Friday in New York.
Fujitsu Corp. lost almost 4.5 percent to 3,190 yen, while Sony Corp. fell 2 percent to 14,460.
In Hong Kong, the Hang Seng index finished flat at 13,573.66, after the market was closed in the morning session due to a severe tropical storm.
South Korean shares prospered from a impending review by Moody's Investors Services of the country's currency ratings, with a view to a possible upgrade. Seoul's Kospi surged almost 4.5 percent to 917.58.
The Straits Times index in Singapore added to earlier gains to close more than 1.7 percent higher on the back of a property-led rally at 2,123.97.
Taiwan was the only market in the red as the Weighted index closed 33 points lower at 8,119.98.
Elsewhere, Sydney's All Ordinaries closed almost 1.3 percent higher at 3,064.2, while Manila's Composite closed just 11 points higher at 2,220.77.
Kuala Lumpur's blue-chip index finished 0.9 percent higher at 770.16, the JSX index in Indonesia gained 1.5 percent to end at 584.80 and Thailand's blue chips rose 1.7 percent to close at 448.19.
-- from staff and wire reports
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