Cisco-led surge boosts Tokyo

ASIAN markets got off to a flying start after the overnight surge on Wall Street and Nasdaq. Investors steamed into technology stocks after the powerful profits performance from Cisco Systems had taken the Dow up 3.1%, and pushed the tech-laden Nasdaq up 7.8%.

Tokyo's Nikkei 225 Average extended yesterday's 1.8% gain with a rise of 112.55 points to 11,633.30 while Taiwan continued to reverse its two-week tumble. Hong Kong's Hang Seng looked set to challenge 12,000 after closing the morning up 99.65, but it fell back later in the day to close 67.55 down at 11700.76.

While Japan's computer-related stocks were sizzling on the Cisco results, the biggest mover was NTT DoCoMo, which soared almost 8%.

The company yesterday sprang a surprise full year's profit on the market, which had been braced for a plunge into the red, and also forecast a recovery to record net profits in the current year.

Hopes that US demand will offset any strengthening in the value of the yen encouraged buying of big export stocks in Tokyo, particularly those linked to computers and telecommunications. Computer and consumer electronics giant Sony gained more than 2%, closely followed by communications equipment maker Fujitsu.

Motor stocks also accelerated, with Nissan up more than 2% ahead of the release of bumper profits later this month.

There was hardly a trace of red among Hang Seng index stocks, despite some traders questioning whether the 10% rise from an April low had taken share prices too far ahead in the short term.

The first rise in Taiwan's exports for 13 months was taken as an early indicator that the economy was back on the growth track, and the Weighted Average recorded a 27.75-point gain to 5739.28. The country's top two chipmakers, Taiwan Semiconductor and United Microelectronics, responded to the Cisco euphoria by surging more than 3%.

Plans put forward by creditors to break up South Korea's stricken Hynix Semiconductor sent the shares rocketing 12%. Profit-taking undermined earlier gains and the Kospi closed 6 points lower at 838.67.

Sydney stocks failed to hang on to the best levels as bank stocks slid on an unexpected rise in unemployment, which suggested the economy was slowing down. Despite turning in results above most forecasts, National Bank of Australia shares fell almost 2% and the All Ordinaries dipped 1.9 to 3285.50.

In Singapore an 18% slide in net profits of Singapore Telecom slightly weakened its shares, and the Straits Times index fell 1.82 points to 1,733.61.

Malaysian stocks reflected Wall Street's rally, and the Kuala Lumpur Composite index added 0.19 to 794.66.

In Thailand, the SET lost 1.78 points at 380.70. And in Jakarta the Composite rose 2.86 to 547.74.