US confidence inspires Asia

ASIAN investors reckoned they were marching on the road to recovery again today as consumer confidence in the US continued to strengthen. Buyers snapped up stocks of companies with significant exposure to the American market after the US Conference Board's index of consumer confidence report for March scored its biggest rise in 25 years.

Tokyo stocks reversed four days of losses as solid demand for makers of cars, computers and electronic gadgets powered the Nikkei 225 Average up 115.76 points to 11,323.68, a gain of more than 1%. Hong Kong stocks also unwound two days of falls, while South Korea led the pack again with a 2.5% surge, which took the Kospi back through the 900 hoop.

Japanese investors also swooped on NTT DoCoMo, the country's largest company by capitalisation, which has been made more affordable to retail investors after a five-for-one stock split in the formerly heavyweight stock, and the price rose almost 5%.

Among the big winners on the US consumption story were Toyota, up more than 2%, and magnetic disc and drive manufacturer TDK which soared 6%, helped further by plans to consolidate production in Germany.

Despite reports that banks will finish the financial year in four days with their bad-loan books 40% fatter than a year ago, their shares rose today after Financial Services Minister Hakuo Yanagisawa said he backed calls by Bank of Japan Governor Masaru Hayami for bold action in the event of a serious financial crisis. This lifted the big banks by up to 4%.

In Hong Kong the Hang Seng index was driven up 201 points to 10,987.9 on strong buying of local companies with big exposure to the US. Li & Fung, a major trader of garments from China to the fashion stores of the US, rose almost 1%, while Johnson Electric, which provides micromotors to the computer and automobile industries, jumped more than 4%.

South Korean investors took courage from the US report, and recent profit-taking came to an abrupt end, as the Kospi bounded up 21.25 points to 902.28. Samsung Electronics, Pohang Iron & Steel, Korea Telecom and Hyundai Motors were all on the buy sheets as investors sensed a recovery in earnings across the board.

Taiwan failed to share in the regional cheer, and the Weighted Average slid 94.89 points to 6147.75 as falls in domestic-centred counters cancelled out gains in chipmakers. Singapore's bellwether technology stock Chartered Semiconductor led the Straits Times index up 10 points to 1804.1, while publisher SPH Holdings also contributed, with a 4% rise in price after the company reported profits that were better than expected.

Buyers returned to Sydney after a four day absence, and headed for recently battered resource stocks and News Corporation shares. The All Ordinaries index responded with a climb of 76.2 points to 3411.5.

A surge in the price of YTL Power following its successful bid for Wessex Water kept Malaysian stocks swimming against the generally unfavourable local currents, and the Kuala Lumpur Composite added 1.32 points to 752.62. Thailand's SET index was off 4.85 at 379.95, and Malaysia's Jakarta Composite lost 3.73 to 478.13.

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.