Tokyo posts lowest year-end since 1983

A FRAIL rally today failed to prevent

Gains were subdued by the latest unemployment figures, which bore out grim forecasts and showed a month-on-month rise from 5.4% to a record 5.5% in November. Some other markets ended the year with strong bull runs as institutions topped up their holdings in the hope of a recovery in 2002.

The modest advance of 85.01 points to 10,542.62 on the Nikkei Average was on the back of a surge in bank shares after reports that the government was again prepared to use taxpayers' money to refloat the sinking behemoths. The stories appeared to be confirmed at a Press conference where a government minister said he believed it would be one option in the event of a catastrophe, which many believe is inevitable.

The remarks followed reports in leading Japanese newspapers that Prime Minister Junichiro Koizumi had bowed to political pressure from the elders of the Liberal Democratic Party and agreed that a government-financed bailout of the banks was possible.

The damage that such a rescue operation might do to Japan's image as a reforming economy was ignored by relieved investors, who began bargain-hunting among the big banks. Smaller houses fell, however, on fears that at least one secondranker was heading for bankruptcy.

Mizuho Holdings, the world's largest lender and a holder of record levels of bad debts, leaped more than 8% while others in the Big Four scored rises of between 4% and 6%.

South Korea's market approached the year-end showing the same strength that has made it the runaway top performer in Asia this year. Institutions frightened of being left off the bandwagon, which many believe can carry on running, snapped up stock across the board from technology counters to construction companies and banks.

The Kospi index jumped 24.63 points to 693.16, a 3.7% gain that cemented its year's rise at 31% in US dollar terms.

Taiwan stocks continued their recent rally, which has taken the market up 25% since 30 November, and added 67.32 points to 5400.30. A paring of local interest rates by the central bank helped sentiment while technology stocks continued to benefit from expectations of a recovery in the semiconductor industry next year.

Some light bargain-hunting among Hong Kong mobile phone companies provided most of the impetus for a 32.26-point rise to 11,391.78 on the Hang Seng index. HSBC Holdings firmed on reports that it was poised to confirm its plans to buy a small stake in Bank of Shanghai.

Good Christmas sales lifted retailers in Australia, where takeover speculation also fuelled prices in other sectors. The All Ordinaries index added 9.1 points to 3363.8, which left it 3% ahead on the year in local currency terms.

Most South-East Asia markets were quietly firmer, led by Singapore, where the Straits Times index put on 15.09 points to 1627.10. Thailand's SET index was up 1.92 points at 303.09 and the Jakarta Composite managed a 0.3-point rise to 380.09. In Malaysia the Kuala Lumpur Composite index lost 1.72 points to 686.

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.