Dell forecast buoys sinking techs

A BULLISH forecast of sales and earnings from America's Dell personal computer group saved Asian markets from what was set to be a grim week. Hopes that this signalled the end of the PC pain propelled Nasdaq stocks and futures ahead in after-hours trading, and buoyed up the recently-sinking stocks of the region's technology companies.

Tokyo's Nikkei 225 Average, down 2.5% yesterday, rebounded by almost 2% in early afternoon trading, settling back to close up 1.1% at 10,601.45, a gain of 115 points. Tech stocks in Taiwan, South Korea and Singapore were also boosted by Dell's statement that second-quarter sales would be ahead of forecasts - a rare shaft of light in the gloom that descended on the computer sector.

Japanese stocks were further underpinned by the government's view that the economy would continue to improve in July, although the recovery remained patchy. Many analysts pointed out that the assessment was heavily dependent on exports to the US and the rising yen.

The 10% fall in the value of Japanese stocks over the past three months has forced the government to reconsider its plans to list shares in Japan Tobacco, it emerged today. The possible impact of the market being hit by up to US$2.5bn (£1.6bn) worth of stock had forced a rethink, it was reported in Tokyo.

Surging chipmakers and other computer related counters sent South Korea's Kospi index bounding ahead by 25.15 points to 790.03, while Taiwan's Weighted Average was boosted 172.55 points to 5375.14.

Dell's upbeat forecast was good for shares of Singapore's suppliers of components to the PC market. The Straits Times index added 4.4 points to 1612.59, led by rises of more than 2% in the stocks of chipmaker Chartered Semiconductor and of Soundblaster game card producer Creative Technology.

Wall Street's late recovery encouraged cautious buying in Hong Kong, although trade was subdued ahead of the planned issue of shares in Bank of China (Hong Kong) later this month. HSBC Holdings was a drag on the market as its stock remained unchanged after touching recent lows, and the Hang Seng's advance was limited to 33.17 points at 10,591.18.

But Wall Street failed to inspire Sydney investors, who are waiting to see what the next crop of company results will bring. Most intriguing move of the day was the suspension of the Macquarie Airports investment group, which has stakes in Bristol and Birmingham airports. The company's shares were frozen ahead of an expected announcement of a major transaction. News Corporation shares responded to the advance in the company's New York quote with a 2% rise, but bank shares fell. National Australia Bank was down 1% on mixed views over a rumoured approach to the UK's Abbey National. The All Ordinaries closed at 3146.5, up 4.4 points.

Smaller South-East Asian markets levelled out after a week of decline on tentative hopes that the end of the recent bear run is now in sight. In Malaysia, the Kuala Lumpur Composite edged up 0.43 to 739.28, Thailand's SET index put on 2.3 points at 400.27 and in Indonesia the Jakarta Composite advanced 3.42 points to 474.24.

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.