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Nikkei provides Asian lift
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November 26, 1999: 6:32 a.m. ET
Tech stocks push Tokyo blue-chip index up 1%; euro hits new low against yen
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LONDON (CNNfn) - Tokyo blue chips led a broad rally across most of the region Friday as Japanese tech and telecom shares continued their recent strong run.
The Nikkei 225 closed 1 percent higher at 18,914.50, a gain of 193 points, as an afternoon rally more than made up for a downbeat start to the session.
The gains followed a losing session Thursday, which interrupted a five-day winning streak. The Nikkei was almost 1 percent higher for the week, with a gain of 163 points.
Investors have been buying technology stocks largely in anticipation of demand from new investment trusts for these glamour stocks.
But traders said Friday's rally showed signs of spreading to other sectors. "Of course the market is still very focused on high-techs and information technology-related issues, but today we saw a bit of buying in other sectors," said Katsuhiko Kodama, head of equities at Toyo Securities.
Among the major gainers, mobile phone operator NTT Docomo jumped 3.6 percent to end at 3.69 million yen, while its parent NTT gained 1.6 percent to 1.9 million yen. The market's recent darling stock, Internet investors Softbank, gained 2 percent to close at 76,400 yen.
Games maker Sega Enterprises surged almost 14 percent to 2,680 yen in anticipation of a major restructuring announcement, accompanying its earnings report, due out after the market closed.
In the currency market, the euro sank to another new low against the yen to 105.92 in Tokyo, continuing a weak performance Thursday. The strength of the Japanese currency also knocked the dollar down toward the 104 level, although traders said the U.S. currency was finding support at those levels.
Asia's markets received no guidance from Wall Street, which was closed Thursday for the Thanksgiving holiday, but record closes in Europe helped sentiment across the region.
Hong Kong's Hang Seng closed 1.8 percent higher at 15,274.53, a gain of 276 points. Strong buying of telecom stocks by European institutions helped the index to a strong close and pushing it up 1.3 percent or 201 points for the week.
Hutchison Whampao rose 3.2 percent to HK$95.50 on expectations that the world's largest hostile bid for Germany's Mannesmann, in which the conglomerate has a 10 percent interest, by Britain's Vodafone AirTouch could succeed.
C&W Hong Kong Telecom gained 2.9 percent to HK$21.60, while China Telecom rose 2 percent to HK$38.70.
The Straits Times in Singapore posted strong finishing gains, as the index closed 1.5 percent higher at 2,235.82. Sentiment was lifted after the government relaxed rules governing the use of the local currency by non-residents in capital markets. "It lends length and breadth to the debt market. We are very happy about it," said Ernest Wong, president of United Overseas Bank.
The index gained 15 points, or 0.8 percent, over the last five sessions.
In Australia, the All Ordinaries received a lift again from telcos and technology stocks as it closed 16 points higher at 3,060.0, a gain of 0.5 percent.
Three regional markets bucked the winning trend. Seoul's Kospi slumped 2.4 percent, or 23 points, at 949.16, as an automated selling program kicked in.
Taipei's Weighted index slumped almost 4 percent to end at 7,595.44 as unconfirmed reports of military tensions with Mainland China panicked sellers.
Manila blue chips also had a negative session as they slipped 3 points to close at 1,959.55.
In Jakarta, the JSX closed 1.3 percent higher at 596.35, while the Composite in Kuala Lumpur gained 1 percent to end at 745.91. Thailand's Set index surged almost 2 percent to end at 412.31.
-- from staff and wire reports
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