Tokyo tax win boosts the banks

A COURTROOM victory over the taxman in

As major lenders, led by Mitsubishi Tokyo Financial and Mizuho Holdings, added up to 6%, the Nikkei 225 Average steadied at 11,207.92, down only 53.17 points. Elsewhere, prices drifted with the exception of some technology stocks which received a lift from an upbeat profit outlook from computer giant Fujitsu.

The company, which is expected to plunge into losses in the current year to end March, claimed that heavy restructuring would bring a return to profits next year, and the shares added almost 2%. Other computer-related stocks, led by Adventest, picked up the pace from Fujitsu, while falls in other sectors on the overnight weakness on Wall Street were limited on signs that government pension funds were supporting the market.

Asian investors joined those in the US in worries about interest-rate rises and a less bullish outlook for corporate growth that sliced 1.14% off the Dow Jones Industrial Average and 2.10% off Nasdaq.

In Hong Kong shares ended marooned in the red as stocks in technology-related companies and export traders slid and the Hang Seng index drooped 49.7 points to 10,786.9. Moves by telecoms provider Pacific Century Cyberworks to lay off 6% of its workforce failed to attract buyers, and the shares weakened slightly. The job losses were regarded as further evidence of the lacklustre performance of the company rather than an act of firm management. Property companies remained weak on the prospect of higher interest rates.

Signs of a mid-morning rally in South Korea quickly faded as foreign institutions continued to unload stock to lock in profits as part of end-of-quarter window dressing. The Kospi index finally was barely changed at 879.66, up 0.25. Leading blue-chip Samsung Electronics was an exception and rose almost 2% after reporting an improving trend in profits on higher computer chip prices.

Some isolated strength among Taiwan computer makers propped up the market as other blue-chips slipped and the Weighted Average was up by 23.47 points at 6242.64.

Thin trading in Singapore saw the Straits Times index down 4.5 points at 1794.1. The biggest drag on the market was blue-chip Keppel Corporation, reported to be running into accounting difficulties in the sale of its telecom offshoot. Its shares fell by more than 1% for at two-day tumble of 5%.

Australian stocks dropped to their lowest in a month, as Wall Street losses hit sentiment, and took almost 2% off News Corporation shares. But the All Ordinaries index rallied into the close, ending ahead 11.2 at 3384.4.

In Malaysia, YTL Corporation shares were suspended as news broke of its winning bid for Enron offshoot Wessex Water, but other blue-chips moved up and the Composite index added 3.21 to 749.47. Thailand's SET index eased 0.95 to 386.17, but Indonesia's Jakarta Composite rose 3.84 points to 483.27.

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.