AMP in demand on takeover hopes

WHILE

They pushed NAB and AMP shares higher, although AMP later gave up those gains. NAB edged ahead 0.1% to A$31.29, while AMP fell 0.2% to A$6.67.

Investors remain unsure about the benefits of ANZ Banking Group's tilt for Lloyds TSB's National Bank of New Zealand. ANZ was off 0.1% at A$18.18.

The market, which fears the £1.8bn price tag may be too steep for ANZ to digest comfortably, has given a lukewarm response.

The broader market was up, with the All Ordinaries rising 12.5 to 3307.7, on stronger earnings expectations from the US.

Companies exposed to the US were the biggest beneficiaries, with News Corp and BHP Billiton leading the pack. News stock rose 1% to A$12.59 while BHP was up 0.1% at A$11.83.

Building products company Boral put on 3.7% to A$5.58, while Mayne continued its rise in the wake of the sale of its hospitals, gaining 1.7% to A$3.50.

In Tokyo, shares fell for the first day in four. The Nikkei 225 was 130.19 points lower at 11,031.52. Yesterday's winners were today's main losers with brokers Nomura and Nikko Cordial leading the way down. Nomura fell 3.5% to 1998 yen and Nikko lost 5.5% to 722 yen.

Good news from Texas Instruments in the US helped similar stocks in Japan with Sharp rising 3.4% to 1805 yen. Exporters were also helped by comments by Treasury Secretary John Snow that Washington was not seeking to weaken the greenback.

Other winners were firms with bright expectations for earnings this week, including Mitsubishi Chemical, up 1.7% at 296 yen.

In Hong Kong, shares were up, with the Hang Seng rising 0.6%, or 70.08 points, to 12,217.97.

Hongkong and Shanghai Hotels faced selling pressure on news that it plans to raise HK$1.13bn (£87.2m) through a share placing. It fell 11% to HK$4.85. The operator of the prestigious Peninsula chain plans to use the money to pay for hotels developments and refurbishment. It owns hotels in Tokyo and Shanghai as well as Hong Kong.

More bad news for micro-motor maker Johnson Electric pushed the stock down 1% to HK$10.30. It was hit on Monday because of a profits warning, compounded on Tuesday when investment bank JP Morgan cut its profit forecasts.

But what JP Morgan takes away, it also gives. China's number-two mobile phone carrier China Unicom added 2.1% to HK$7.45 after the bank raised its earnings forecasts for 2004 and 2005, citing lower marketing costs and capital expenditure.

Singapore shares continued to break through 18-month highs with the Straits Times index up 9.59 points at 1789.83.

Banks DBS and OCBC picked up pace, with DBS up 1.3% at S$15.20, and OCBC ahead 0.8% to S$12.20. Property developers were also on the move. City Developments, south-east Asia's secondbiggest property and hotel group, gained 2.4% to S$6.35. United Overseas Bank was flat at S$14.40.

News that Wing Tai's consortium had emerged as the highest bidder for a hotly contested property site in north-eastern Singapore, pushed its shares 0.6% higher to S$0.90.