Tech punters focus on good times ahead

WARNINGS that the technology stock recovery had gone too far were ignored in Asian markets today as chip shares surged on investors' belief that the worst is over, even if the best is a long way ahead.

Action in some markets was subdued ahead of pronouncements from Federal Reserve Board chairman Alan Greenspan due today in New York. These are expected to be firmly upbeat, following the confusion that greeted his last economic assessment.

Analysts will also be searching for clues to whether Asian economies can count on a continuing lower interest rate policy and whether the Federal Open Market Committee meeting next week will come up with one last cut.

Nasdaq's overnight surge of more than 2% whetted appetites for Asian technology stocks and big chipmakers and components suppliers in Japan led the Nikkei 225 Average up 33.14 points to 10,074.05. Upgrading of US technology counters by JP Morgan triggered sympathetic gains of 7% in shares of Advantest, a major supplier of chip testing equipment, and Tokyo Electron.

The continuing weakness of the yen, and Honda's recent bullish profits statement saw further acceleration in car manufacturers, led by Toyota.

With the unveiling of full-year results only weeks away, investors continued to abandon bank stocks, and falls ranged up to 4% among the major lenders.

South Korea resumed its place at the top of Asia's premier league as investors swooped on semiconductor exporters and domestically-centred counters.

The Kospi added another 2% plus to its year's gains, with a 15.25 rise to 757.87.

Pohang Iron and Steel, the world's No 2 steelmaker, shook off poor full-year results after the company forecast a solid improvement in the current year, while chip stocks were led by a 2.6% rise in Samsung Electronics.

After an early attempt at a weak rally, Hong Kong stocks fell back again for the third day in succession.

The Hang Seng index was pulled down 48.76 points to 10,713.38 by late falls in HSBC Holdings and a quick fizzle to a rally in China mobile phone operators.

The stubborn refusal of Hong Kong citizens to buy property hurt developers, who are sitting on big blocks of unsold apartments. Buyers in Taiwan were encouraged by a further strengthening of Taiwan's Cabinet and the Weighted Average rose 31.69 to 5801.47.

Trading in Singapore was dominated by Creative Technologies, producer of the Sound-Blaster games and audio cards, which is seen as a proxy on global sales of PCs. Hopes that demand is now returning sent the recently bombed-out stock up more than 4% as the Straits Times index gained 2.02 to 668.38.

Higher oil prices, hops of a global recovery and continuing bid rumours concerning resources stocks in Sydney helped the All Ordinaries to a 8.2-points gain to 3371.9. BHP Billiton scored a rise of 2.5%, with Rio Tinto not far behind, but News Corp stocks drifted after a poor showing of its ADRs in New York.

Indonesian stocks rose more than 2%, pushing the Jakarta Composite index up 10.46 points to 444.44. In Malaysia the Kuala Lumpur Composite lost 3.57 points to 684.99, while Thailand's SET index edged up 2.60 to 329.52.

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.