Tokyo puts damper on Greenspan cheer

ASIAN markets applauded Alan Greenspan's upbeat address to the US Congress yesterday, but reaction in

The Federal Reserve Board chairman's assurances that the economy was showing sign of recovery and that inventories were being run down carried more weight than analysts' interpretations that this meant the end of interest-rate cuts.

Technology stocks led the surge across Asia after Nasdaq's firm close, and South Korea continued to lead the upswing with a gain of more than 3%.

In Japan, prices clambered back to leave the Nikkei up 70.09 points at 10,144.14 at the close. Trading was subdued by figures which showed no end in sight to the deflationary spiral as consumer prices in 2001 dropped by 0.7%, the biggest fall in 30 years.

Bank shares continued to tank as nerves about their bad-debt mountain were further stretched over their full-year results. Heavy dumping by US houses sent Mizuho stock tumbling 5%, while Sumitomo Mitsui Banking slid by more than 4%. The wider market was helped by strength in export stocks, including car makers, and a sharp gain in Sony ahead of figures and on news that its Aiwa electronic gadget subsidiary was heading for profit.

Prospects of revived demand for semiconductors in the US boosted South Korean technology stocks and the Kospi index gained 20.78 points to 778.49, taking its year's rise above 12%. As chip stocks gained more than 5% led by Samsung Electronics, bank stocks added more strength to the market on government plans for further privatisations.

Similar sentiments over the outlook for semiconductors boosted Taiwan's heavyweight-manufacturers and the Weighted Average danced up 148.72 points to 5950.64. Foreign investors were encouraged by friendly overtures to Taipei's government from senior Beijing ministers, which could signal a thaw in relations.

Hong Kong investors failed to find inspiration in Greenspan's optimism, and the Hang Seng index drifted 18.08 points to 10,723.38 in sluggish trading. Exportlinked stocks received a boost, and market leader HSBC Holdings enjoyed a mild respite after severe marking down on earnings fears. Falls in China mobile phone stocks proved a stronger influence. Key gainer from hopes of world recovery was Cathay Pacific, and shares in the airline climbed almost 5%.

Singapore's computerrelated counters joined the regional party, taking the Straits Times index up 50.85 points to 1713.83. Sydney stocks trotted up, lifting the All Ordinaries index up 10.8 points to 3382.7 at the close. News Corporation provided most of the energy as profit-taking in resource stocks ended their recent bull run on takeover hopes. WMC shares completed a two-day slide of more than 6% after denials of rumours that Alcoa was chasing the company.

Malaysia's Kuala Lumpur Composite index added 5.53 points to 691.48 on growing economic optimism, while slightly firmer Thailand stocks took the SET index up 3.14 points to 337.1.

Indonesia's New Year run continued, as the Composite index in Jakarta added a further 5.78 to 451.63, taking the year's gain to more than 15%.

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.