Most Asian stocks higher; Taiwan stocks buck trend

Dow Jones, Singapore

Asian stock markets closed mostly higher Tuesday, with the key index in Tokyo rising for the fourth straight session.

Bucking the trend was the Taiwan Stock Exchange, where the main index plunged to a near nine-year low after semiconductor shares took a beating in U.S. markets overnight.

Japan's benchmark 225-issue Nikkei Stock Average closed up 164.28 points, or 1.7 percent, to 10136.56.

Investors bought back oversold shares in major lenders after a loss forecast at UFJ Holdings Inc. proved no worse than analysts' expectations.

UFJ - comprising Sanwa Bank, Tokai Bank and Toyo Trust & Banking Co. - said it expects to post a group net loss of Y65 billion yen for the six months ended Sept. 30.

In currency dealings, the dollar rose against the yen amid possible further intervention by Japan's finance authorities to support the U.S. currency. Finance Minister Masajuro Shiokawa said Tuesday that Japan is ready to counter any rapid yen rise.

A stronger yen makes Japanese exports more expensive abroad and thus less competitive, cutting into earnings of exporters when foreign revenue is converted back into the Japanese currency.

The dollar was quoted at 120.82 yen, up 1.18 yen from late Monday and above its late New York level of 120.26 yen overnight.

In Taipei, the Weighted Price Index of the Taiwan Stock Exchange fell 144.82 points, or 4 percent, to 3492.12, its lowest close since Jan. 30, 1993.

Electronics shares bore the brunt of the selloff, ending 4.9 percent lower, on the overnight drop in the Philadelphia Semiconductor Index, which closed down 3 percent.

Increasing fear that the U.S. may take military action against Afghanistan also forced investors to sell and convert their stock holdings into cash, analysts said.

The markets were closed in Hong Kong and South Korea for holidays.

Indonesian shares closed lower as the rupiah's renewed weakness against the dollar and fears of further threats to U.S. citizens damped market sentiment. The JSX Composite Index fell 2.9 percent, or 11.443 points, to 377.232.

In Singapore, share prices closed higher in very thin trading, as investors stayed on the sidelines ahead of a crucial meeting by the U.S. Federal Open Market Committee. The Straits Times Index rose 18.03 points or 1.4 percent to 1350.32.

New Zealand's shares closed higher, boosted by gains in most blue chips. The NZSE-40 Capital Index rose 30.66 points, or 1.7 percent, to 1867.94.

In Malaysia, the key index closed slightly higher on anticipation of a U.S. interest rate cut later in the day. The Composite Index of 100 blue-chip stocks rose 2.79 points, or 0.5 percent, to 616.74.

Philippine shares closed lower, with the key index hitting another three-year low on foreign selling triggered by concerns about the possible economic fallout from the terrorist attacks in the U.S. The 30-company Philippine Stock Exchange Index fell 20.05 points, or 1.8 percent, to 1105.01 - its lowest closing level since Sept. 14, 1998.

Australian share prices closed higher on expectations of a reduction in local interest rates on Wednesday. The All Ordinarines Index rose 39.40 points, or 1.3 percent, to 3074.20.

Thai stocks closed higher, led by gains in banking and finance sectors. The Stock Exchange of Thailand Index rose 3.40 points, or 1.3 percent, to close at 276.49.