Jobs cheer gives Tokyo a lift

FAINT signs that

The fall in the jobless rate in Japan to 5.3% in January from 5.5% a month earlier surprised economists who had expected an increase to 5.7%. They pointed out that the number of newly unemployed rose year-on-year by 230,000, but the registered number fell because so many redundant workers had given up looking for work.

Sony led the market higher, bounding up 3% after the company moved to snap up the 61% of the Aiwa consumer electronics group it does not already own. Bank shares continued to firm as the crackdown on short selling continued to force some heavy bear covering.

Hong Kong stocks closed lower after an advisory committee recommended that property taxes should be raised to help the government reduce its burgeoning deficit. Nerves ahead of the report took the Hang Seng index down through 10,400 to a new 2002 low, before it recovered marginally, off 57.2 at 10,425.3.

Shares in property developers fell as much as 4% as investors worried that an additional tax burden on property owners would further depress already rock bottom sales of new developments. HSBC Holdings, which reports full-year figures next week, continued its recent slide, hastened by reports that it plans to widen its interests in Argentina, and the stock lost HK$1.25 to HK$85.50.

Taiwan stocks reflected a 1.1% fall in the Nasdaq overnight and a 3% drop in the key Philadelphia Semiconductor index which depressed major chipmakers and pulled the Weighted Average index down 15.33 points to 5680.78.

Sydney stocks were lethargic as poor earnings reports continued to deter buyers. The All Ordinaries index bounced around before ending 3.5 higher at 3362.1. National Foods shares slumped 6% after half-year profits failed to reach market estimates. Brambles Industries bucked the trend with a 6% gain on hopes that a 27% fall in half-year profits is a signal that the worst is over.

Singapore investors continued to be tempted into the market by buoyant economic data, and the Straits Times index ended a bullish week with a gain of 5.94 points to 1721.52. Buyers of stock in major Singapore chipmaker Chartered Semiconductor ignored Nasdaq's lead after the company raised its quarterly profit outlook, and the shares gained 2.3% to a three-month high.

Investors in Thailand chased up shares of blue-chips on expectations of an earnings recovery and the SET index jumped 8.84 to 380.65.

Malaysian stocks rose on the improving economic outlook and the Kuala Lumpur Composite added 8.7 at 717.57, but in Indonesia stocks fell back, leaving Jakarta's Composite index down 1.08 points at 452.16. South Korean markets were closed.