US surge lifts gloom in Hong Kong

INVESTORS enjoyed that Friday feeling in Asia today as many stocks edged higher after an exceedingly robust performance on Wall Street.

The rises did much to lift the terror-related gloom that had infected trading in recent sessions, driving some markets below their levels at the start of the year.

In Hong Kong banks, airlines and property-related issues led the advances, brokers saying it was time to buy back in after reverses left select counters oversold.

Global lender HSBC advanced HK$1 or 0.9% to HK$116.50 but it remains well shy of the highs approaching HK$130 struck weeks ago. Its affiliate Hang Seng Bank put on HK$1 or 1% to HK$98.25 and rival Standard Chartered rose 50 cents to HK$130.50.

Elsewhere blue-chip Bank of East Asia firmed 10 cents or 0.4% to HK$23.05, while Bank of China (Hong Kong) merely managed to hold its ground at HK$14.80.

The cause for the mild celebration was a 1.7% leap for the Dow and a more remarkable 3% jump in the tech-laced Nasdaq.

There was also much to ponder from the number crunchers' opinions on the state of the world's top economy this year and last, which could have a considerable impact on Asian markets in the months ahead. Figures showed that the US economy grew at an annualised rate of 4.1% in the final quarter of last year. That was shy of the sizzling 8% rate of the preceding three-month period, but still more than respectable.

For 2003 as a whole, the Commerce Department said that corporate profits rose by 18.3% to $1.07 trillion. For this year, a survey by a top manufacturers' group showed that its members expected a 14% lift in returns in 2004.

There were positive signals too on jobs. The same snapshot of manufacturing sentiment showed that 55% of US factories planned to boost their headcount this year, while one third said they would keep employment levels static.

The US markets' jump, and the supporting data, encouraged bargain-seekers in other Hong Kong sectors. De facto flag-carrier Cathay Pacific Airways traded at HK$15.65, better by 10 cents or 0.7%. Henderson Land Development gained 40 cents or 1% at HK$37.30, Sun Hung Kai Properties was better by 75 cents or 1% at HK$70.50; and Hang Lung Properties strengthened by five cents or 0.5% to HK$11.15.

The Hang Seng index rallied to close 28.75 points up at 12,548.96 after being dragged back by a steep fall in mobile player China Unicom, which after lousy results sank 80 cents or 9.8% to HK$7.35.

Japan was also enlivened by the bulls as the Nikkei 225 was catapulted ahead 239.74 points or more than 2% to 11,770.65 points with advances in tech shares thanks to the lead provided by the Nasdaq.

Advantest, the maker of chip-testing equipment, roared ahead 490 yen or 6% to 8570, while chipmaker Tokyo Electron soared 490 yen or 6% to 6940.

Sony was also targeted by those encouraged by the US advances. It rose 130 yen to 4330, a gain of 3.1%.

Australian wine maker Southcorp caught the attention as investors piled in on the belief that improvements in export markets in the US and Europe would help to power a recovery in sales.

These have been key areas of weakness for Southcorp, which firmed 20 cents or 6.7% to A$3.16. The All Ordinaries index closed up by 28.5 points or 0.84% to 3424.2.