Asia Watch

THERE were some scattered fireworks in Asian markets but most investors were content to sit back and see what interest rate action would emerge from the Federal Reserve this week.

Chipmakers sparkled on scattered predictions that the worst of the semiconductor trough had now been reached, but Japan's electronics sector crumpled almost 4% after reports that mobile phones giant NTT Docomo will announce major write-offs on Wednesday. Rises in big exporters' stocks limited the damage, and the Nikkei 225 Average clawed back to close with a net gain of 63.76 to 10,447.54.

NTT Docomo's shares were slashed almost 5% after reports that it was preparing to write $3.35bn (£2.29bn) off the value of its stake in Dutch cellphone service provider KPN Mobile, which has been reported to be in talks with British Telecom about sharing 3G networks. Investors cheered the global restructuring by Matsushita Electric, which includes closing plants in Britain. Motor giant Toyota, expected to report record half-year profits on Thursday, accelerated as the yen lost ground against the dollar.

Turnover in Hong Kong was wafer-thin as investors awaited the news from the Fed on Tuesday, but the Hang Seng index rose 244.7 points to 10,430.7, buoyed by a 10% spurt in TVB, which is forming a joint venture with the giant mainland CCTV group. Most banks rose on vague hopes of consolidation among smaller players, but HSBC Holdings dipped 0.75 cents to HK$86.75.

Hopes that electronics exports were on the way back to pre-11 September levels lifted Taiwanese semiconductor manufacturers. Although analysts pointed out that this would hardly represent a major recovery, given the long-term decline in sales, the Weighted Average added more than 2% as gains of up to 4% among chipmakers took it up 82.03 to 4080.51.

Interest rates hopes lifted stocks in South Korea, which is the only major Asian market to be showing a year-to-date advance. The Kospi's 11.05-point advance to 561.62 took this year's gain to above 10%.

Singapore's Straits Times index fell 1.1 points to 1340.5, hit by a profits plunge at DBS Bank, the country's largest lender, which also said it was coming to shareholders for new capital. DBS reported a sixfold increase in bad debt provision for the nine months to end-September, which slashed profits by 20% to S$830m (£312m). Deteriorating economic conditions in Singapore were blamed for the downturn by the group, which plans a stock placement of $S2.1bn. DBS shares were suspended.

Political issues overshadowed Sydney's market ahead of the Australian general election on Saturday, leaving trading flat and the S&P/ASX 200 index down 14.1 points at 3225.8. But the All Ordinaries gained 48.9 to 3225.8. The forthcoming major issue of stock in the giant PTT oil and gas group subdued trading in Thailand, where the SET index fell 1.64 points to 272.58.

Malaysian stocks resumed their familiar downward path, and the Kuala Lumpur Composite lost 2.95 points to 593.70. The continuing weakness in Indonesia's rupiah pushed the Jakarta Composite down 5.34 points to 375.31.

Prices and indices in this section are supplied from various sources and calculated at different times and may not always match those listed on the site.