Taiwan, Jakarta markets shine

Taiwan, Jakarta markets shine

SINGAPORE (Reuters): Most Asian markets were lackadaisical on
Thursday, but a spurt in the U.S. Nasdaq index enthused
technology stocks, driving Taiwan shares to end up nearly 3.5
percent.

In Tokyo, the dollar stood at 116.32/42 yen at 0635 GMT
against Wednesday's late U.S. level of 116.43, as the local
currency firmed thanks to Japanese repatriation of funds for
year-end accounts in March and speculation that Prime Minister
Yoshiro Mori is under growing pressure to resign.

Mori is under fire for golfing after he heard that a Japanese
student training ship had sunk after a U.S. submarine rammed it.

Tokyo's benchmark Nikkei index closed up 0.33 percent at
13,327.4 as a rebound in the tech-laden Nasdaq spurred buying in
electronics parts makers, such as Kyocera Corp, that have been
hit by a slowdown in global demand.

"The market right now is driven by speculation and will
continue to be tightly linked to swings in U.S. shares," said
Marc Desmidt, director of the equity team at Merrill Lynch
Investment Managers. "That's exactly what we're seeing with the
chip issues today."

In New York, a rebound in the world's top semiconductor maker
Intel Corp and a rally in chip gear maker Applied Materials Inc
helped the Nasdaq add 2.62 percent to 2,491.40 and bounce back
from a five-week low hit on Tuesday.

The Dow Jones Industrial average closed down 0.99 percent at
10,795.4 points.

Japanese traders said the shaky political climate, amid
opposition calls for Prime Minister Yoshiro Mori's resignation,
would preoccupy investors and limit the upside potential.

"Hopes that Mori may throw in the towel has brightened
sentiment a bit and even induced some buying -- but if he does,
the real question is whether his successor can step in and
provide the market with the structural reforms it so desperately
needs," said Hidenori Karaki, equities general manager at Tokyo
Mitsubishi Personal Securities.

Taiwan's benchmark index ended up 3.68 percent at 6,104.24
points, as electronics surged on Nasdaq gains while construction
shares jumped on a state plan to open the property market to
foreigners.

Jakarta shares spurted 2.37 percent to 433.3 points by 0640
GMT, following sharp jumps in Indonesia's two major state-run
telecom stocks after a landmark deal.

In Hong Kong, the Hang Seng index shed 0.66 percent to end the
morning at 15,756.1 by 0638 GMT, led by Internet and telecom
group Pacific Century CyberWorks (PCCW), which lost more than
four percent as uncertainty mounted over the state of Cable &
Wireless Plc stake in the company.

Australia's benchmark S&P/ASX 200 index closed down 0.73
percent at 3,325.7 points as investors began to worry there might
be no more rate cuts out of the United States.

"There is a feeling out there now that the U.S. rate cuts we
have seen may be all we will get and some people are now focusing
on a soft economic landing," suggested Lindsay Gibson, fund
manager at Credit Suisse Asset Management.

"So, if you factor in interest rates being one percent higher
in a year's time rather than one percent lower, that's not good
for stocks," Gibson said.

Singapore's Straits Times Index was up 0.5 percent at 1,976.5
points by 0638 GMT, led by technology stocks driven by rumors of
imminent mergers and a jump in U.S. counterparts.

"But these rumors are not new and the cautious tone of most
investors towards the sector is unlikely to change very much in
the short term as, at least on the interest rate front, we are
not looking for any more cuts until March," saidChan Tuck Sing,
head of sales at OUB Securities Pte Ltd.

Seoul stocks ended down 0.03 percent, and New Zealand shares
closed down 0.55 percent.