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Tokyo jumps 350 points
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September 21, 1999: 5:52 a.m. ET
Nikkei climbs on telecom talk but BoJ inaction leaves other markets lower
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LONDON (CNNfn) - Tokyo posted another strong performance Tuesday in a session dominated by the earthquake in Taiwan, while the aftershocks of the Bank of Japan's latest policy meeting hit other markets as the yen's advance resumed.
Tokyo closed more than 2 percent ahead before the central bank surprised the markets by offering little policy response to the yen's recent appreciation.
The announcement sent the yen up 2 percent against the dollar and pulled back other markets in toward the close of Asian trading.
Financial markets in Taiwan were closed following a devastating earthquake which left more than 1,000 people dead, according to preliminary reports.
With markets expecting the bank of Japan to loosen monetary policy, the benchmark Nikkei 225 index in Tokyo closed up 357.5 points at its session high of 17,932.79, with telecom stocks providing an additional focus.
In Hong Kong, the Hang Seng index closed down 52 points or 0.4 percent at 13,420.46 as blue chips came under selling pressure late in the session.
Singapore's Straits Times index closed down 0.7 percent at 2,108.24 as property stocks took a tumble.
In Seoul, the Kospi index surged 2.5 percent to close at 957.42. The market was buoyed by sharp jumps in semiconductor manufacturers. Analysts speculated that the Taiwanese earthquake will slash the country's chip production, allowing Korean rivals to fill the gap and firm prices.
Telecom talk provided Tokyo with an upward push, with speculation that DDI would merge with the unlisted telecom carrier Nippon Idou Tsushin. DDI shares closed up 4.3 percent while NTT, the country's largest telecom group, lost more than 2 percent. NTT Docomo, the largest cellular player, added 1 percent.
Sony continued to outperform the market as the roll-out of its PlayStation 2 video game nears. The stock added 4.8 percent. Other export-sensitive stocks climbed on the softer yen, with Honda rising 2.4 percent and NEC climbing 2 percent.
Seven-Eleven, the nationwide convenience store, added 3.3 percent after announcing a move into banking.
Hong Kong was buoyed in morning trade by Hutchison Whampoa and China Telecom (Hong Kong).
Hutchison gained from the $3.5 billion purchase of Chicago-based Aerial Communications by VoiceStream Wireless, in which the Hong Kong conglomerate has an indirect 30 percent stake, only to slip back near the close to end off 0.3 percent..
China Telecom climbed on speculation that it had amassed a $3 billion war chest to expand its cellular activities in mainland China, but ended flat..
Heavyweight HSBC Holdings also pulled the market down with a 0.5 percent retreat and property shares also weakened, with Henderson Land down 1.6 percent and New World Development off 1.1 percent.
Singapore lost ground as property stocks were undermined by concerns about inflated valuations. City Development led the decliners as it lost 4.2 percent while DBS Land was off 1.8 percent.
Heavyweight bank DBS was off 0.5 percent but Singapore Airlines surged almost 2 percent on expectation of a higher weighting in the MSCI tracking index.
Smaller Asian markets were mixed. The KLSE Composite in Kuala Lumpur surged 3.7 percent to close at 736.32 after the government lifted more capital controls, thereby encouraging overseas investors back into the market.
The PHS index in Manila added almost 1 percent at 2,126.54 on subdued interest rate fears and the JSX index in Jakarta reversed early losses to end up 0.7 percent at 547.26.
The All Ordinaries in Sydney suffered from a fall in global commodity prices, sending the index 13 points or 0.46 percent lower at 2,893.9.
Bangkok's Set index closed down 1.6 percent at 427.24. 
-- from staff and wire reports
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