News Corp investors shrug off terror

UNCLE Sam raised the US terror alert to its second-highest level at the weekend, saying it feared attacks over Christmas. But investors in Asia preferred to focus on companies that may prosper in 2004 if the expansion of the world's largest economy continues.

Heading the pack in Australia was Rupert Murdoch's media conglomerate News Corp, up 24 cents, or 2%, to A$11.92. The main driver was the qualified thumbs-up from US regulators for its $6.6bn (£3.7bn) takeover of satellite broadcaster DirecTV.

The deal had been months in the making, but its weekend approval had been largely expected after Murdoch as good as said it was done and dusted last month.

The Federal Communications Commission waved the acquisition through on a 3-2 vote, appending a raft of conditions to prevent News Corp dominating rival providers.

Brokers said News Corp was also in favour as a straightforward play on a continued US recovery. Notwithstanding lingering concerns over possible terror attacks, and a continued dollar rout, Murdoch's main investment vehicle should gain next year if the macroeconomic environment improves, as most expect.

The stock peaked for the year at A$13.81 in September, close to 14% above current levels. That could provide reasonable room for improvement over the first quarter, luring those willing to place their bets now, rather than after the festive holiday.

In a similar vein, resource plays also featured on the gainers' board with BHP Billiton picking up 13 cents to A$12.03, an improvement of 1%. Rio Tinto firmed 24 cents, or 0.7%, to A$36.47, and Alumina Corp, an aluminium producer, jumped 17 cents, or 2.7%, to A$2.44.

AMP, the financial services provider now shorn of its troublesome British operations, continued to advance. The stock added 12 cents, or 2.5%, to A$4.93. HHG, the remnants of its UK units, starts trading tomorrow.

The All Ordinaries index climbed 22.7 points, or 0.7%, to 3261.20. The main benchmark is almost 9% higher than it was at the start of the year.

A slew of Japan's largest names were stronger as investors positioned themselves to benefit from the hoped-for stock buying of new investment trusts. Several of the funds have been set up this month and are seen focusing early investment efforts on some of the country's best-known corporates.

Mobile phones giant NTT DoCoMo gained 8,000 yen, or 3.5%, to 238,000, carmaker Honda advanced 60 yen, or 1.3%, to 4740 and rival Nissan pushed up 18 yen to 1239 yen, a 1.5% gain.

Ahead of tomorrow's public holiday for the Emperor's birthday, the Nikkei 225 Average added 87.97 points, or 0.7%, to 10,372.51. The broader-based Topix index closed at 1015.26, up 6.65 points, or 0.7%.

Hong Kong witnessed a renewed display of faith in Chinese market newcomers. China Life Insurance, the world's largest share offering this year, saw further advances after last week's debut. It rose 32.5 cents, or 7%, to HK$4.925.

Cathay Pacific, rattled by last week's confirmed case of the killer Sars virus in Taiwan, gained altitude as the weekend passed with no fresh infections. It added 10 cents, or 0.7%, to HK$14.75. HSBC rose as it is seen well placed to exploit the global economic recovery. It rose HK$1, or

0.8%, to HK$ 120.50, equalling its 52-week high. The Hang Seng index traded at 12,460.77, ahead by 89.02 points, or 0.7%.