Little relief as US recession looms

STOCKS of Asian exporters were lifted today by relief that the US third-quarter GDP figures were not as grim as expected - but any rejoicing was restrained by the knowledge that the dip of 0.4% still signals recession.

In contrast, Asian long bonds soared on the news that the issuing of 30-year US Treasuries was to be suspended.

After the US 30-year issue had its biggest rise in history, Asia's fixed-income investors were making hay as plunging yields locked in capital gains.

In Tokyo big exporters took the Nikkei 225 Average up by more than 1% in early trading but the rally, which seemed likely to provide the first advance in prices this week, petered out in later trading, and the index closed 19.06 points down at 10,347.28.

Sony, Toshiba and other electronics stocks firmed on hopes that the US recession might not be as deep as feared, but the day's big gainer was tyre giant Bridgestone, which soared 9% on reports that it was rebuilding links with the US Ford motor group.

Banking stocks put some energy into the Hang Seng in Hong Kong as prospects of consolidation among smaller banks was raised by the bid for Hong Kong China Bank by the larger Citic Kah Wah group. The index rose a modest 77.52 points to 10,151.49 as HSBC Holdings put on a clear HK$1 to HK$85.50.

Local analysts' reports that global personal computer sales seemed to be bottoming out, and the limited fall in US GDP brought buyers in for Taiwan's big chipmakers and the Weighted Average index climbed 28.35 points to 3931.84.

Leading performer was Taiwan Semiconductor, which gained almost 2%, with other stocks in the sector close behind.

South Korean investors ignored the conclusion that the bailing-out of the tottering Hynix Semiconductor group left the country's reform programme in tatters, and chased the group's stock up by 10%.

Hynix creditors agreed on a US$464m (£319m) package of new loans, and relief that hard decisions had been avoided lifted the Kospi index 6.5 points to 544.31.

Wide gains among Singapore's technology counters, which rose by up to 4%, were wiped out by a 23% slump in computer network operator Datacraft, after it issued a warning of profit and staff cuts, and the Straits Times index lost 10.91 points to 1356.93.

Australian shares went as flat as a day-old glass of Foster's after better- than- expected September retail sales figures ruled out the possibility of easier money soon.

The All Ordinaries fell back from early marginal gains to hover at 3185.7, up 0.4 points. Gains of up to 1% in the retail sector were cancelled out by weaker bank stocks, while News Corporation shone with a 1.2% rise on the US gross domestic product figures.

Shares in New Straits Times, Malaysia's leading newspaper publisher, plunged by 9% after the group announced heavy losses for its last trading year, and the Kuala Lumpur Composite index fell 3.95 points to 596.12.

Apprehension over upcoming earnings left Thailand stocks motionless, the SET index off 0.78 of a point to 274.31, while in an equally listless Indonesian market Jakarta's Composite index eased 0.1 points to 383.64.

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.