Hyundai up as Korea tackles wrangle

KOREA'S government served notice today it has had enough of the impasse between Hyundai Motor and its unions, saying it may step in to help the two sides settle their differences.

The prospect of State-led mediation helped the company's shares push higher, adding 1.8% to an early high of 35,159 won. They later traded 200 won better at 34,700 won.

The manufacturing group, which is 10% held by US-German giant DaimlerChrysler, has been targeted by intermittent strikes as workers press for a wage rise and a five-day week. On the table so far is a rise of 9.4%. But the unions have knocked back the offer.

'We may exercise the government's right to conduct emergency mediation if the union and the management fail to resolve their disagreements by 5 August,' a government spokesman said.

The administration appears concerned the stoppages harm the real economy, and international funds' perceptions of the country as a whole.

Despite the carmaker's rise, the Korea Composite was down 1.38 points at 712.77, lower by 0.2%. Samsung Electronics, the bellwether chipmaker, was off 2500 won, or 0.6%, at 419,000 won.

In Tokyo tech stocks took centre stage, tumbling after results disappointed.

Toshiba was the biggest casualty, falling 43 yen, or 9.4%, to 417 yen after April-June net losses swelled to 36.9 billion yen (£189.8 million) from 18.8 billion yen. The company, whose shares slipped more than 8% yesterday, blamed weaker demand.

Fujitsu, which makes chips and computers, disappointed with its figures on Tuesday. But the stock kept slipping today, off by 27 yen, or 5.2%, to 496 yen. It started the week at 551 yen. Weighed down by the mini tech wreck, the Nikkei 225 retreated 69.45 points, or 0.72%, to 9563.21. The selling wave also caught up NEC, 34 yen, or 4.5%, lower at 716 yen, and Hitachi, clipped by 24 yen, or 4.3%, to 534 yen.

Down Under the guessing game continued on which Australian banks are - and are not - lining up for a swoop on Lloyds TSB's National Bank of New Zealand. The country's largest lender comes with a price tag of about NZ$6 billion (£2.16 billion).

ANZ Bank picked up 15 cents, or 0.8%, to A$18.27 on speculation that it was doing due diligence on NBNZ's books. Rival Commonwealth Bank did better, up 55 cents, or 1.9%, to A$29.99 amid talk that it had dropped out of the race altogether.

Aided by gains for resources play Rio Tinto, better by 42 cents, or 1.3%, to A$32.51, and News Corp's 21 cents, or 1.8%, jump to A$11.62, the All Ordinaries advanced 29.7 points to 3106.6, up 1%. In Singapore State-linked carrier Singapore Airlines slipped 20 cents, or 1.8%, to S$10.70 after unveiling its first-ever quarterly loss, triggered by the Sars crisis. In the three months to June, red ink swelled to S$312 million (£110 million), in line with expectations.

Pressured by a 20 cents, or 1.5%, dip to S$13.20 for lender United Overseas Bank, the Straits Times index dropped 19.63 points, or 1.24%, to 1558.56.

The Taiwan government's announcement that it was trimming its stake in China Steel to about 24% from 40% weakened its shares. They slid 70 cents, or 2.8%, to T$23.90. The Weighted was off 28.44 at 5278.74, down 0.5%.