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HK leads Asian advance
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January 27, 2000: 5:54 a.m. ET
Banks, telecoms lift Hang Seng 3%; Singapore adds 2%, Tokyo recovers
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LONDON (CNNfn) - Hong Kong and Singapore led firm advances by Asia's major stock markets, helped by gains in financial shares as concern there may be steep increases in global interest rates eased. Tokyo closed ahead after recovering from an early slide.
The Nikkei 225 rose 98.5 points, or 0.5 percent, to 19,209.72 after recovering from a morning slide that took the benchmark as low as 18,971. Banks provided the main lift after recent weakness in the sector.
Hong Kong continued to rise as telecom and technology stocks rallied, lifting the Hang Seng index 3.2 percent to 15,917.81. The Straits Times index in Singapore also retained the upward momentum of the last two sessions, closing up 2.05 percent at 2,305.72.
Asian markets shrugged off a 2.3 percent slide in the Nasdaq in New York on Wednesday, sparked by a warning about chip demand from wireless technology company Qualcomm (QCOM). The Dow Jones industrial average fared better, closing up 3.1 points at 11,032.99, though the broader S&P 500 slipped 8 points to 1,404.09.
In currency markets, the yen firmed a shade against the dollar to 105.53 from 105.69 in late New York trading. It also moved up against the euro, ending at 105.60, from105.83 in U.S. trading.
Tokyo's move back into the black was driven by strong demand for financial stocks, which analysts noted had underperformed the Nikkei in recent weeks. Fuji Bank gained 6.5 percent and its merger partner Industrial Bank of Japan climbed 7.9 percent, while Sakura Bank gained 6.6 percent.
Sauruga Bank made the strongest move in the sector, closing 14.2 percent ahead after signing a deal with Internet investor Softbank to launch an online banking service. Softbank shares ended up 2.2 percent.
Yahoo! Japan shares moved by the maximum permitted amount before triggering a trading halt. The Nikkei's most expensive stock added 2 percent to end at 101 million yen apiece.
Consumer electronics giant Sony Corp. advanced on its better-than-expected fourth-quarter earnings report, published after the market closed Wednesday. Its shares closed up 3 percent.
However, a profit warning from U.S. computer giant Dell (DELL) hit semiconductor manufacturer NEC Corp., its shares ending down 1.3 percent.
Auto stocks also fell, with Toyota Motor down 1.1 percent and Honda Motor off 0.8 percent despite the latter claiming the number two spot in the Japanese market, according to data released Wednesday.
Telecoms lift HK
Hong Kong surged on the back of gains in its key telecom components. Hutchison Whampoa rose 5.6 percent, continuing to benefit from its new alliance with U.S.-based Internet shopping service Priceline.com. Pacific Century CyberWorks, which announced a tie with U.S. Internet investor CMGI (CMGI) Wednesday, ended 5 percent higher.
Hutchison parent Cheung Kong (Holdings) was 3.6 percent higher and C&W HKT was 2.8 percent ahead, buoyed by negotiations on a merger. Singapore Telecom, the potential partner, fell almost 4 percent after recent strong gains.
China Telecom closed 8 percent higher, attracting interest because of its exposure to the mainland Chinese market.
Bellwether financial services provider HSBC Holdings, the region's largest bank, moved up almost 2 percent.
Financial stocks in the region benefited from an easing of concerns that the U.S. Federal Reserve will have to raise interest rates sharply to head off inflation, said Dan Fineman, a strategist at Jardine Fleming in Hong Kong. Fed chairman Alan Greenspan, speaking Wednesday to the Senate Banking Committee, gave economists no reason to fear a hike of more than the widely expected quarter percentage point next month.
Singapore moved smartly ahead despite the decline in Singapore Telecom. DBS Group, south-east Asia's largest bank, rose 5.8 percent while Overseas Union Bank and United Overseas Bank rose 2.3 and 3 percent respectively. Singapore Press Holdings jumped 6.1 percent on speculation that its cable unit will expand to take advantage of upcoming liberalization of the local telecom market.
Seoul shines
Among the smaller markets, the Kospi in Seoul made the strongest gain, closing up 2.7 percent at 909.23 as analysts said the market had reached a floor which was attracting bargain hunters.
The All Ordinaries in Sydney ended just 5 points higher at 3,083.40, with rising bank stocks compensating for a fall in commodity companies. The BSE-30 in Mumbai closed up just 7 points at 5,371.47.
The PHS Composite in Manila ended 1.2 percent lower at 1,975.20, with overseas investors moving out of the market following the introduction of new rules limiting foreign exchange dealings.
The Set in Bangkok added 1.2 percent to end at 474.91 while the JSX in Jakarta closed up 0.2 percent at 644.65. The KLSE Composite in Kuala Lumpur lost 0.14 percent to 939.59. 
-- from staff and wire reports
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