China Mobile boost for Hong Kong

A NETWORK deal by cellphone group China Mobile worth US$10.2bn (£7bn), making it the largest operator in the world, sent the company's shares soaring almost 5% in

The share surge powered the Hang Seng index up 123.25 points to 11,956.02 as technology stocks in other Asian markets took heart from strong earnings forecasts from the US Dell computer giant.

China Mobile's deal to take over eight provincial networks for its mainland parent was applauded as a sharp move by Hong Kong analysts. At a stroke it will increase its share of the mainland's mobile phone sector from 48% to 63%.

Tokyo stocks pushed ahead for the fourth day as foreign investors began to bet that the economy was showing genuine signs of recovery. The forecast from Dell that analysts had underestimated the strength of its second-quarter sales and earnings lifted computer stocks in Tokyo, and the Nikkei 225 extended this week's rally with a 108.63 points gain to 11,847.32, taking its year's rise to more than 16%. Chips giant NEC led the charge with a gain of almost 5%, while Sony rose around 1%.

Investors ignored the impending downgrading of Japan's credit rating by Moody's and looked to strong first-quarter gross domestic product figures, which analysts say should propel the Nikkei 225 back through 12,000.

South Korean stocks were pushed higher by old-economy veterans and new technology hopefuls, and the Kospi index bounced up 14.46 to 872.50. The recent strength of the local won bought buyers in for Pohang Iron and Steel, which jumped 3% on expectations it will benefit from cheaper imports of raw materials. Trading in tech stocks was dominated by Hynix Semiconductor, which soared 6% after it embarked on a wide-ranging reconstruction of its battered interests, including sacking 30% of its managers.

Rising order books pumped up stocks of Taiwan's computer-related manufacturers, and the Weighted Average added 14.40 to 5815.87. Singapore shares turned south, reflecting dismay at a forecast loss by local technology leader Datacraft Asia, which sent its shares tumbling more than 6%.

Falls were limited by expectations of some encouraging full-year profit figures from Singapore Airlines later today, but the Straits Times index slipped 3.17 points to 1730.31. Sentiment was also improved by a string of strong economic signals, which showed GDP grew 7.7% in the first quarter, after shrinking 1.7% last year.

Growing conviction that the world economic recovery was now underpinning the domestic upturn sent Australian investors in search of growth stocks, and pushed the All Ordinaries up 69.4 to 3412.6. News Corp continued to rally on a brighter outlook for earnings and put on 2.75%. Resources stocks firmed, led by BHP Billiton and Rio Tinto, and banks joined in the fun.

Thailand's SET index rose 1.03 to 377.21, Malaysia's Composite was 0.14 better at 786.52, and the Jakarta Composite 1.99 points up at 531.73.

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