Softbank reaps internet gains

JAPAN'S top Net access provider Softbank is a day-traders' favourite - some brokers suggest that as much as 70% of the stock's daily turnover comes from strong-nerved investors looking for a quick return.

The company was in play again today - rising 90 yen or 3% to 3,130 - on positive news from an affiliate.

Yahoo! Japan, the internet portal 42% held by Softbank, said late yesterday its quarterly profits doubled in the just-completed period amid strong interest in online advertising and internet auction activity. Investors also rushed for Softbank, and its stock was up 140,000 yen at 2.05m yen.

Yahoo! Japan, in which Yahoo! Inc of the US controls 34%, also said it had applied to transfer its listing from the Jasdaq market for mostly hi-tech start-ups, to the Tokyo Stock Exchange.

Brokers said that if the move is completed, interest in Yahoo! Japan and Softbank itself should increase further. Softbank fared poorly last year, sliding by more than 40% (compared with the Nikkei 225's 28% decline) amid investor jitters about the cost of persuading customers to take up high-speed net access.

This year - fuelled by the day traders' aggressive interest - it has staged a stunning comeback, but its share price has been volatile, rising from 1,300 yen to a recent high of more than 3,800.

Among other gainers in a rising overall market, construction machinery maker Komatsu received a welcome boost from US rival Caterpillar. Komatsu shares jumped 30 yen or 6% to 520, a two-year high, after the Illinois company raised its outlook for the rest of the year.

The Nikkei 225 shook off early losses that followed a dip on Wall Street and a gloomy forecast from Finnish cellphone giant Nokia. With exporters in the vanguard as the yen eased against the dollar, the index rose 61 points at one stage before falling back to close at 9527.73, a gain of 28.87 points. Car maker Toyota added 10 yen or 0.32 at 3,110, while rival Nissan firmed 34 yen or 3% to 1,169. Tyre maker Bridgestone fell 11 yen or 0.7% to 1,356 yen.

Hong Kong's Pacific Century Cyberworks, the territory's leading fixed-line provider, reaped the whirlwind after a severely discounted rights issue. Shares in the company controlled by Richard Li tumbled 52.5 cents or 10.8% to HK$4.32.5, resuming trade after yesterday's suspension. The rights issue was made at HK$4.40 a share, far below its then-current trading price of HK$4.85.

The benchmark Hang Seng index was a shade weaker for a second day - off 56.33 points or 0.56% at 10040.19 - as the territory's deep political crisis showed no sign of easing. Tung Chee-hwa, the chief executive under siege after ministerial resignations and mass protests, has appealed to Beijing to speed up a trade deal to boost growth. Tung also vowed he would not quit.

Profit-takers took the upper hand in South Korea. Pointing to Wall Street's weakness and a shooting incident along the border with North Korea, they clipped Samsung Electronics by 12,500 won or 3.1% to 405,500. Hynix Semiconductor dropped 20 won to 9720, lower by 0.2%. The Seoul Composite was down by 16.01 points at 700.47.

Malaysian power giant Tenaga rose by five cents or 0.6% to M$9 after settling a legal spat with the bank UBS. Terms were not disclosed. The Kuala Lumpur Composite index fell 2.17 points to 713.48, down 0.3%.