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Asian markets advance
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February 16, 2000: 5:15 a.m. ET
Tokyo adds 1.2%, HK up 2% as banks return to favor after U.S. blue-chip rally
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LONDON (CNNfn) - Asia's major equity markets all closed firmly ahead Wednesday as investors returned to financial-service and industrial stocks sidelined in recent sessions by a focus on telecom and technology shares.
In Tokyo, the benchmark Nikkei 225 ended up 231 points, or 1.2 percent, at 19,599.18, reversing Tuesday's 1 percent decline as investors shrugged off renewed concerns over corporate bankruptcies to return to the financial sector stocks.
In Hong Kong, the Hang Seng index closed up 355 points, or 2.1 percent, at 17,043.39 after a volatile session while in Singapore, the Straits Times advanced in late trading to end at 2,121.32, recovering from a morning move into the red.
Asian markets followed the pattern set on Wall Street, where a rally by blue chips in the financial, consumer and manufacturing sectors sent the Dow Jones industrial average up 1.9 percent to 10,718.09. The Nasdaq Composite made a narrow 2.2-point gain to end at 4,420.77 while the broader S&P 500 rose12.1 points to 2,402.05.
Wall Street's gains helped to keep the dollar above 109 yen, trading at about 109.20 towards the end of the session. The euro remained in a tight band around $0.9810.
In Tokyo, financial-services companies exposed to the recent collapse of supermarket group Nagasakiya Co. rebounded after two sessions of losses. Dai-Ichi Kangyo Bank, the retailer's largest creditor, closed 8 percent higher while Fuji Bank advanced 7.9 percent and Industrial Bank of Japan gained 9.4 percent.
Among automakers, Honda Motor added 3 percent on its report of a smaller-than-expected fourth-quarter loss, posted after the market closed Tuesday. Nissan Motor added 4 percent, adding to its 10 percent leap in the previous session. Toyota Motor was the weakest in the sector, ending fractionally down.
Electronic components manufacturer TDK Corp., which also posted upbeat results Tuesday, jumped 10.5 percent.
Insurer Dai-Tokyo Fire & Marine surged 11.1 percent on expectations of a merger with Chiyota Fire & Marine, a unit of Toyota. Chiyota shares rose 1.1 percent.
In Hong Kong, investors took a break from their feverish pursuit of telecom stocks to return to the financial, property and utility sectors that have lagged the market in recent weeks. Bank HSBC Holdings, the market's largest component, rose 5.4 percent, its domestic Hang Seng Bank unit gained 6.3 percent and Bank of East Asia rose more than 3 percent.
C&W HKT, Hong Kong's largest fixed-line and cellular phone operator and the focus of recent merger talk, lost 2.4 percent while Pacific Century CyberWorks, the Internet investor seeking to challenge Singapore Telecom for control of C&W HKT, shed 4 percent.
In the property sector, Wharf Holdings and New World Development each added 2 percent, while Hong Kong & China Gas climbed almost 7 percent as investors returned to the sector.
In Singapore, Singapore Telecom rose fractionally after falls in recent sessions as its plan to merge came under pressure. Banks all fell back, but technology stocks helped the market to advance, with Datacraft adding 2.7 percent and Venture Holdings up almost 5 percent.
Among smaller markets. Taiwan's Weighted index was the only one to advance strongly, closing up 1.1 percent at 10,064.49. The KLSE Composite in Kuala Lumpur ended up 0.3 percent at 998.77.
Sydney's All Ordinaries closed down 0.3 percent at 3,148.30, with a 3 percent fall in telecom heavyweight Telstra offsetting a 4 percent gain by media giant News Corp.
The Kospi index in Seoul steadied after losing almost 8 percent this week, closing Wednesday's session fractionally lower at 879.50. The BSE 30 in Mumbai lost 0.8 percent to close at 5,755.99. Other markets suffered sharp declines. The PHS Composite in Manila ended 2.2 percent lower at 1,894.95 as an insider-dealing scandal gripped the market. The Set in Thailand shed 1.9 percent as weak telecom shares left it to close at 422.97. The JSX index in Jakarta was hit by a weak rupiah, sending it down 2.35 percent to 621.90. 
-- from staff and wire reports
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