Nikkei lifted as yen's rise slows

THE wrestling match between the

The resulting gyrations of the yen were reflected in a volatile morning's trading for shares in Japan's big exporters, and a roller-coaster ride for the Nikkei 225. At one point the yen had risen to 122.80, after trading as high as 121.125 ahead of the Bank of Japan intervention.

In early deals, the rocketing yen sent the Nikkei 225 tumbling to below 10,170, but the BoJ's action, backed by strong statements from ministers that the government means to keep the yen in check, saw a strong bounceback. The Nikkei closed at 10,471.32, up 116.97.

Finance Minister Masajuro Shiokawa confirmed Japan's intervention and stated: 'Recent rapid movements of the dollar-yen exchange rates in the markets could have undesirable implications for the Japanese economy and the world economy. We have taken appropriate action today in the foreign exchange market.' Further action would be taken if appropriate, he promised.

The moves reversed early heavy losses for motor manufacturers. After slumping almost 5%, shares of Honda, which relies on the United States for 90% of global sales, recovered to a 1% loss, while Nissan broke even on the day, and Toyota edged up slightly.

The biggest plays in Hong Kong were among the locally quoted China mainland groups, known as H shares, which rocketed by up to 6% after a statement from Beijing that proposed massive sales of stocks of state-owned industries would be postponed.

The prospect of a wave of equity hitting China's stocks market has recently outweighed the brighter long-term outlook for local companies, and the weekend's assurances bought foreign investors rushing back into the market.

Mixed trading in other blue-chips left the Hang Seng up 16.09 points at 10,607.95. A calmer reaction to Brazil's political problems brought back buyers for HSBC Holdings, which added 0.25 cents to HK$88.75.

Malaysian shares dived almost 2% on the confusion surrounding the shock resignation at the weekend by veteran Prime Minister Mahathir Mohamad. Although he had retracted within minutes, the prospect of coming political upheavals sent investors heading for the exits, and the Kuala Lumpur Composite dived 13.69 to 729.66.

Gnawing doubts about the corporate strategy of Rupert Murdoch's News Corp sent the shares spinning more than 5% in Sydney, where the All Ordinaries lost 17.2 to 3187.3. News Corp investors were rattled by reports that the group's plans to move in on Italy's pay-TV market were running into obstacles.

South Korean stocks continued to lose their earlier glamour, as bank shares fell on earnings fears and the Kospi drooped 12.26 to 766.27. Weaker chip stocks hit Taiwan and Singapore, with the Weighted Average down 32.65 to 5427.88, and the Straits Times index off 3.31 at 1542.94. Profit-taking left Thailand's SET index down 5.26 to 390.20, and the Jakarta Composite in Indonesia 8.48 lower at 517.39.

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.