HK's flying start but others flag

Better jobless figures from the US gave car makers in Tokyo a boost, but profit-taking on recently-rampant technology stocks left the Nikkei 225 Average down 32.99 at 10,048.1.

Stocks in companies with big exposure to the US market rose in Hong Kong after the slowing in jobless numbers added credibility to forecasts of an early recovery. The Hang Seng index broke though 11,000 in early trade, and peaked at 11,109 before profit-taking took it back to 10,991.9, a gain of 159.1. HSBC Holdings strengthened more than 1% to HK$89.50 on growing confidence in its US earnings, and fading fears about its exposure to Argentina.

Profit-taking on Japanese tech shares was countered by recoveries in banking stocks on continued reports that the government plans yet another bail-out. Finance Minister Masajuro Shiokawa told reporters that more public money might be needed as the banks' balance sheets were hollowed out by bad loans and the slump in the value of their equity holdings.

Prime Minister Junichiro Koizumi ordered a full-scale inspection of bank figures on Thursday as he prepared to defend his economic policies at next week's meeting with US President George Bush. The plight of the sector was underlined by bankruptcy figures, at a post-Second World War high in January, rising almost 20% year-on-year. Prospects of US buyers boosting demand for Japanese cars for the second year running lifted car makers Nissan and Honda.

South Korea's strong run - which took it to 19-month highs this week - slowed as retail investors sold shares to lock in profits. The Kospi index, which has risen more than 13% this year, drifted off 12.92 to 783.26 as sellers judged it was not ready yet to challenge the key 800 level. Hynix Semiconductor slumped 11% after prevarications by directors over a possible deal with the US Micron chip giant raised the prospect of further delays in negotiations.

Strong advances by Singapore property stocks on hopes that a recovery will boost demand failed to offset a weak tech sector. The Straits Times index broke its earlier winning streak with a fall of 6.4 points to 1768.3. Previous big winner Creative Technology tumbled almost 3% on worries about its investment in US software group Nvidia.

In Sydney, stocks reversed their recent pattern and News Corp pulled the market ahead as resource stocks held it back. The All Ordinaries index closed 56 points up at 3480.4. News rallied more than 3% after investors judged that hammering the share price on poor earnings had gone far enough. BHP Billiton fell a similar amount after directors warned of a tough second half.

Falling interest rates and rising foreign buying kept shares on the boil in Thailand and the SET index rose 6.28 points to 371.58. Buying of blue-chips pushed Indonesia's Jakarta Composite up 3.76 to 443.16 while takeover talk boosted bank shares in Malaysia, helping the Kuala Lumpur Composite gain 6.77 points at 721.58. Taiwan's markets stayed closed.

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