StanChart's move good for Seoul

STANDARD Chartered provided the focus in Asian trade as the bank stirred up interest in

Koram Bank, Korea's sixth largest, soared 1070 won, or 12%, to 9970 after the UK bank's chief executive Mervyn Davies said he had more than doubled Standard's holding to 9.7% from 4% for £96m.

'This provides Standard Chartered with another foothold in South Korea and gives us further insight into the country's banking market,' Davies said, as he unveiled interim results above expectations. 'We have no immediate plans to increase our stake further.'

Nevertheless, Koram's re-rating was prompt. The bank, which has assets of $35bn (£21.7bn), 6.5m retail customers and more than 220 branches, was raised to outperform by Goldman Sachs. It suggested increased input from StanChart was a major plus for the Korean group.

The swoop makes it Koram's second-largest shareholder. Earlier this year, Standard said it planned to raise its game in South Korea - a market it says has 'significant potential' - by building its retail business to complement a long-standing presence in wholesale banking.

Elsewhere in Seoul, carmaker Hyundai slipped for a second session amid concerns its deal this week to settle a disruptive labour dispute could stoke costs. It fell 1350 won to 32,350, lower by 4%. The Kospi index gained 1.93 points to 709.81, a 0.3% advance. Hi-tech bellwether Samsung Electronics dipped 6000 won, or 1.4%, to 407,000 on weakness in the US Nasdaq.

In Hong Kong, the skies were clearer for carrier Cathay Pacific Airways, which rose 10 cents or 1% to HK$11.05. After Cathay's ghastly, but expected, Sars-scarred interims, analysts said they were encouraged by prospects for the remainder of this year and into next year. ING maintained its buy rating but raised its price target to HK$12.75 from HK$12.50. It said the blight caused by the killer flu and Iraq war was ebbing, while regional economies were picking up steam. Conglomerate Swire Pacific, Cathay's largest shareholder, missed out on a corresponding lift, falling 50 cents, or 1.4%, to HK$35.50.

The Hang Seng index fell 29.5 to 9958, despite a 25-cent gain for global lender HSBC to HK$96.75. Brokers said it had been oversold in the previous session. Affiliate Hang Seng Bank was level at HK$84.25.

Standard Chartered's Hong Kong shares added 25 cents to HK$99.75. Merrill Lynch today boosted its forecast for Standard's net profit by 10.6% to $1.04bn.

In Japan, tech shares dipped on the back of the softer Nasdaq. Toshiba was 13 yen weaker at 392, a 3.2% setback, while Fujitsu backtracked 11 yen to 473, down 2.3%. The Nikkei 225 Average headed in the same direction, easing 58.35 points to 9265.56, a 0.6% decline.

State-linked telco Singapore Telecommunications picked up four cents, or 2.5%, to S$1.62 after decent quarterly figures. First-quarter net profit jumped tripled to S$1.2bn (£395m), aided by its international expansion. The Straits Times index closed unchanged at 1510.2.