Export hopes lift Japan carmakers

AFTER yesterday's gruesome session in many Asian markets, investors managed today to close the week on a brighter note, inspired by the bounce back in US equities.

The stand-out stars were Japan's carmakers, which gained ground amid expectations that their sales - especially overseas - will continue to do well.

Leading the pack was Toyota Motor, which climbed 4% to 3,660 yen, its best close of the year. Toyota has succeeded in making inroads into the key US market despite the desperate buyers' incentives offered by US rivals. American sales account for close to four-fifths of Toyota's operating profits.

Honda Motor, the country's second-largest carmaker, was also on a roll, climbing 2.6% to 5190 yen. Lean and mean Nissan Motor gained 2.3% to 1329 yen.

Brokers said Canon, the office equipment maker, and Sony, the consumer products giant, also had a firmer tone on expectations that their exports would do well this year. Canon shares added 1.9% to 5800 yen, while Sony gained 2.1% to 4320 yen.

The Nikkei 225 rose 166.48 points, or 1.58%, to 10,712.81, erasing some of the 2.9% slide racked up on the anniversary of the 9.11 attacks. The broader-based Topix index was 1.5% better at 1039.11. Goldman Sachs has forecast the measure could strike 1200 points in the coming months as the domestic economy gathers pace.

Australian stocks were pulled upwards by banks. A decision by Westpac Banking to quit the race to buy Lloyds TSB's New Zealand unit lifted the entire sector.

Westpac was one of only two groups that had declared their interest in the National Bank of New Zealand, along with Australia and New Zealand Banking Group. Westpac said today that bidding for National Bank would distract it from developing its other core businesses.

The move killed off the possibility that the company may issue new shares to raise funds for the bid, boosting its shares 14 cents, or 0.9%, to A$14.29.

ANZ, now seemingly in the clear for a tilt at National Bank unless other bidders join the fray, rose 20 cents, or 1.1%, to A$18.10.

With additional strength from resources plays, the All Ordinaries climbed 8.3 points, or 0.3%, to 3202.2. BHP Billiton gained seven cents, or 0.7%, to A$10.91, while Rio Tinto firmed 29 cents, or 0.9%, to A$33.54.

Shares in minnow market Indonesia strengthened in line with the regional advance despite continued profit-taking in Bank Mandiri, its largest lender by assets.

Market bellwether Telekomunikasi Indonesia, the communications group, climbed 25 rupiah, or 0.5%, to 4975 rupiah as bargain-hunters stepped in after three sessions of losses. The reversal put it back on course to challenge its record high of 5,400 rupiah, which it hit on Monday. Bank Mandiri eased 25 rupiah, or 2.9%, to 825 rupiah.

The Jakarta Composite was better by 4.3 points at 569.94, a gain of 0.76%.

Malaysian shares trod water as investors waited to absorb details of this year's national budget due later today. The Kuala Lumpur Composite lost 1.94 points, or 0.26%, to 741.06.

Brokers expected Prime Minister Mahathir Mohamad would lift the veil on a slew of populist measures in what will be his final budget before stepping down later this year. Mahathir is also Finance Minister.

South Korea and Hong Kong's financial markets were closed for local holidays.