Matsushita still has edge on Sony

CONSUMER product rivals Matsushita Electrical Industrial and Sony pressed the right buttons in

Both stocks gained ground but, as has been the story so far this year, Matsushita had the edge. Reflecting that gap, it recently surpassed Sony in market capitalisation for the first time in four years.

Matsushita rose 33 yen or 2.3% to 1492 yen with first-quarter figures looming tomorrow. Analysts expect the company behind the Panasonic brand to report net profit climbed by just under two-thirds to seven billion yen (£36 million). Turnover was expected to rise fractionally to 1.8 trillion yen.

Brokers say its performance should be underpinned by cost cuts, higher sales of key products including DVD players, and an ability to hold rivals at bay, including Sony and South Korea's Samsung Electronics.

Since January, Matsushita shares have soared by more than 25%. Over the same period - and despite a recent recovery from a nasty earnings surprise in late April - Sony is down by more than 20%.

Sony shares were also up today, however, adding 20 yen or 0.5% to 3840. At a series of Press engagements, the company's chief financial officer Takao Yuhara repeated that a corporate recovery was under way.

There have been persistent problems at Sony's key electronics division, which has been battered by falling product prices and growing competition. There are also hefty restructuring costs in the pipeline.

Yuhara raised the possibility that the life assurance unit Sony Life could be floated. He also pledged to improve communication to eliminate the kind of shock that was triggered by the April figures. 'Part of my task will be to gauge if certain information will be a surprise to investors and if so, disclose those things in a timely manner,' he said.

Lender Mizuho Financial, the world's largest bank by assets, said efforts to clean up its loan book were bearing fruit. Bad loans had declined to 4.68 trillion yen at the end of June compared with 4.79 trillion three months before. Its stock added 1000 yen or 1% at 109,000. The Nikkei 225 was little changed, falling 5.6 points to 9834.31.

Hong Kong-listed Chinese brewer Harbin rose a heady 30 cents or 11.8% to HK$2.87 as it finalised a deal with SABMiller to buy into the company. It has risen from HK$2.50 since the move by the world's second-largest brewer to take a 30% stake in Harbin was unveiled last month.

The Hang Seng index gained 22.95 points or 0.2% at 10,157.83. Oil producer CNOOC jumped 90 cents or 7% to HK$13.60 as executives considered paying a special dividend.

Hynix Semiconductor dropped in South Korea on reports that the European Union had followed the United States in imposing punitive duties on Hynix chips amid a row over alleged State subsidies. It fell 310 won or 4.1% to 7170. The Seoul Composite index was off 1.27 points or 0.2% to 716.53.

In the Philippines, shares mauled yesterday after a failed coup attempt receded further. Manila's benchmark PSE Composite index dropped 26.47 points or 2.1% to 1228.24.