Most Asian stock markets may rise this week

Most Asian stock markets may rise this week

MANILA (Bloomberg): Philippine stocks may surge this week after Gloria Macapagal Arroyo took over as president from Joseph Estrada, who quit after a corruption scandal lost him the support of his cabinet, the military and the Filipino public.

Arroyo, who had been vice president, was sworn in after tens of thousands of protesters marched on the presidential palace to demand Estrada's resignation. Support for Estrada disintegrated after senators loyal to him voted Tuesday to bar key evidence in his corruption trial, a step tantamount to acquittal.

It "will help restore some confidence which is vital for the Philippine economy," said Colin Ng, a senior portfolio manager at UOB Asset Management Ltd., which oversees S$3.5 billion ($2 billion) in assets.

In other markets, Japanese stocks may fall, led by Mizuho Holdings Inc. and other banks as government plans to boost the market won't be effective until at least April. Korea, Hong Kong, Singapore and Malaysia stocks may rise, led by computer-related stocks after the U.S. Nasdaq Composite Index's two-week gain, its first since September.

Philippine Long Distance Telephone Co., the nation's biggest phone company that often serves as a barometer of overseas investment in the Philippines, may lead the market's advance Monday. Its American depositary shares rose 26 percent on the New York Stock Exchange, their biggest gain since Oct. 27, 1987.

The nation's currency rallied in anticipation of Estrada's exit. The peso surged 12 percent to 49 against the dollar, its highest level in more than two months. The gains suggest the central bank won't need to raise interest rates anytime soon and may even trim borrowing costs.

Korean stocks may rise for a third day, led by Samsung Electronics Co. and Hyundai Electronics Industries Co. as U.S. computer-related companies' earnings reports ease concerns about profit growth for the world's two biggest computer memory chipmakers.

On Friday, the Nasdaq Composite Index rose after Microsoft Corp., the No. 1 software maker, reported profit that met expectations, suggesting the worst of the earnings slowdown may be over for some technology companies. EBay Inc., an Internet auctioneer, beat analysts' earnings estimates.

"There's still room to rise as we keep seeing strong earnings from key U.S. technology companies," said Jang Dong Hun, who manages a $250 million portfolio at SK Investment Trust Management Co. in Seoul.

In Hong Kong, investors will focus on China Mobile (Hong Kong) Ltd. and other technology-related companies as Microsoft's earnings and those of others boost hopes industry growth can be maintained.

"The earnings have been surprisingly good and sentiment has brightened," said Marco Wong, chief investment officer at SGY Asset Management, which invests $2.5 billion in Asia ex-Japan.

In Singapore, Venture Manufacturing Singapore Ltd., Omni Industries Ltd. and other electronics component makers may rise as better earnings among U.S. companies raised hopes manufacturing orders for computer-related goods won't slow as much as anticipated.

"In terms of price, everybody is not going to take an underweight bet on electronics," said Keane Chung, an associate director at Invesco Asset Management Ltd., who helps manage $7 billion in Hong Kong and Singapore. "Those who are buying are probably neutralizing their underweight positions and if that's the case, there will be some support for these stocks in the near-term."

Singapore's Creative Technology Ltd., also the world's No. 1 maker of sound cards that power audio in personal computers made by Dell Computer Corp. and others, may rise as its December quarter profit beat analysts' expectations. Still, gains may be muted as it warned orders may be weak in the following three months.

Malaysian stocks may also get a lift from the U.S. earnings, as Microsoft is one of the country's biggest partners in its key technology park project. That fueled optimism the industry won't not slow as much as expected. Pacific Industries Bhd. may rise. Investors may also focus on Time Engineering Bhd., as its Time dotCom Bhd. unit prepares to unveil details of its 1.9 billion ringgit ($500 million) initial share sale by Jan. 29.

In Australia, investors will focus on fourth-quarter production reports from Lihir Gold Ltd., Santos Ltd. and Rio Tinto Ltd. Attention will also fall on Mayne Nickless Ltd. as Australia's biggest private hospital owner is expected to announce an increased bid for rival Australian Hospital Care Ltd.

Indonesian stocks may fall, led by PT Indah Kiat Pulp & Paper Corp. and PT Pabrik Kertas Tjiwi Kimia, the two units of Asia Pulp and Paper Co., Asia's largest pulp and paper company outside Japan. A newspaper report said Asia Pulp's shares may be dropped from the New York Stock Exchange after its stock price fell below $1 for 31 straight days. Investors are concerned Asia Pulp's debt may be transferred to the two units or their growth and earnings be used to cover its debt.

Thai stocks may rise, led by Advanced Info Service Pcl after the country's biggest mobile phone operator posted a record number of new customers in December. Kiatnakin Finance Pcl and other brokerages may climb as investors bet a rise in daily trading volume on the stock exchange will help boost earnings, while Krung Thai Bank Pcl may gain on hopes it will report a return to 2000 profit on Monday.