19 August 2004, 09:56  Asian Stocks Gain; Advantest, LG Electronics Rise; Taiwan Jumps

Asian stocks rose, led by computer- related companies such as Advantest Corp. and Samsung Electronics Co., after a rally in the U.S. Nasdaq Composite Index renewed optimism for their earnings growth. ``We may have been too pessimistic about the technology industry'' on concern demand peaked in the second quarter, said Park Hyung Ryul, who helps manage the equivalent of $865 million at KTB Asset Management Co. in Seoul. Park has been buying more computer-related shares such as Samsung Electronics.
Forecasts at companies including Japan's Asahi Glass Co., Hong Kong-traded Maanshan Iron & Steel Co., and Amcor Ltd. in Australia also bolstered optimism for earnings in the region. The Morgan Stanley Capital International Asia-Pacific Index, which tracks the performance of more than 900 companies in the region, rose 1 percent to 87.31 at 1:21 p.m. in Tokyo. Japan's Nikkei 225 Stock Average added 1.1 percent to 10,889.96, while South Korea's Kospi index climbed 2 percent to 788.65. Taiwan's Taiex index jumped 2.5 percent, the biggest gain in the region. All benchmarks in Asian markets open for trading climbed, except those in China and Indonesia.
Daiei Inc., which has more than $10 billion in debt, surged by the daily limit after Wal-Mart Stores Inc., the world's largest merchant, said it may invest in the retailer. The Nasdaq, which gets about two-fifths of its value from computer-related companies, had its biggest gain in two months as Network Appliance Inc. said second-quarter earnings and sales may exceed estimates. The index fell to its lowest in a year on Aug. 12 after a disappointing earnings forecast from Hewlett-Packard Co., the world's No. 2 maker of personal computers. Surging oil prices and profit forecasts last month from companies including Microsoft Corp. and EBay Inc. also weighed on stocks.
`Coming to an End'
In Japan, Advantest, the world's biggest maker of equipment used to test computer-memory chips, climbed 3.4 percent to 7,030 yen. Toshiba Corp., the world's fifth-largest chipmaker, jumped 4.1 percent to 404 yen. South Korea's Samsung Electronics, the world's second- largest chipmaker, climbed 2.4 percent to 440,500 won. LG Electronics Inc., South Korea's second-largest electronics maker, jumped 5.9 percent to 55,700 won. Taiwan Semiconductor Manufacturing Co., the world's largest maker of made-to-order chips, gained 3.1 percent to NT$46.20. AU Optronics Corp., the world's third-largest maker of flat-panel displays, jumped 5.7 percent to NT$42.70. In Singapore, Chartered Semiconductor Manufacturing Ltd., the world's third-largest supplier of made-to-order chips, advanced 7.8 percent to S$1.11, the biggest gain this year. The MSCI Asia-Pacific Information Technology Index, which has slumped 9.7 percent this quarter because of concern earnings growth at computer-related companies has peaked, climbed 2 percent today. The gain was biggest among the 10 industry groups that make up the regional index. ``Gains in U.S. technology stocks suggest that a global slump in their shares may be coming to an end,'' said Keiji Numata, a general manager of the investment information department at Toyo Securities Co. in Tokyo.
Earnings Forecasts
Asahi Glass, Japan's largest glassmaker, added 4 percent to 997 yen. The company late yesterday raised its profit forecast by 7 percent to 73 billion yen ($666.6 million) as demand for glass parts used in flat-panel displays increased. Economists boosted forecasts for Japan's economic growth to 3.6 percent for the year that started April 1 from 3.2 percent in a Bloomberg News survey conducted after the latest GDP report. Amcor, the world's largest maker of plastic bottles, gained 2.4 percent to A$6.96. The company said it expected earnings to grow by about 20 percent in the next two years. Maanshan Steel, China's largest Hong Kong-listed steelmaker by value, jumped 4 percent to HK$2.60. It said profit may rise by more than half in the first nine months of this year because of higher sales. Wal-Mart Interest Daiei, Japan's third-largest retailer, surged by the 50 yen daily limit, or 27 percent, to 235. Wal-Mart said it hired Goldman Sachs Group Inc. and Dresdner Kleinwort Wasserstein to review investment opportunities after Daiei said it is pursuing restructuring alternatives. Daiei has to agree with its main lenders on a new restructuring plan by early September to reduce 1.1 trillion yen of debt it had as of February. ``This is the first positive news I have seen in the Daiei saga that I can remember,'' said Kirby Daley, a strategist at Societe Generale Securities' Fimat division in Tokyo. ``I would expect after (Wal-Mart's) announcement we will see other interested parties appear.''
China, Hong Kong
China's stock indexes dropped on concern of an outflow of funds after the government yesterday said it will let insurers invest as much as four-fifths of their $9.8 billion in foreign- currency assets in offshore debt markets. The Shanghai Composite Index, which tracks yuan-denominated A shares and foreign-currency B shares on the Shanghai stock exchange, lost 0.8 percent to 1347.28. The Shenzhen Composite Index, which tracks Class A and B shares on the Shenzhen stock exchange, dropped 1.1 percent to 332.69. Amoi Electronics Co., a maker of audio and video products such as digital video disc players and home theater systems, plunged 8.6 percent to 6.87 yuan. The company reported first-half profit fell 76.5 percent as sales dropped. Hong Kong's Hang Seng Index gained 1.3 percent to 12,387.34. China Mobile (H.K.) Ltd. added 0.9 percent to HK$21.85. The world's largest cell-phone service operator by customers said it will raise its half-year dividend by a fifth to 20 cents a share. The company said yesterday first-half profit rose 7.8 percent as it won more customers. ///www.bloomberg.com

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