VARIOUS: Hong Kong and Tokyo stocks bounce back after overnight Wall Street recovery

Continuing a roller-coaster ride that began in late February, Asia took its cue from a rebounding Wall Street to indulge in a buying spree on Thursday (March 15). The Nikkei average rose 1.10 percent led buoyed by exporter Canon, as concerns about their earnings receded following the recovery in U.S. stocks and the yen's retreat against the dollar. Relieved by the halting of a slide in global share prices, investors resumed buying shares in companies with good earnings prospects. Property and steel firms including Nippon Steel led the way. Softbank was the largest contributor to the Nikkei's rise, climbing 4.5 percent to 2,890 yen, after Daiwa Institute of Research gave it with a "1" rating and set a one-year target price of 4,000 yen. Chubu Electric Power gained 3.8 percent to 4,150 yen after the Nikkei business daily reported that British hedge fund TCI had acquired at least a 1 percent stake in Chubu and asked it for higher dividends and share buybacks. Analysts said investors were still cautious about the U.S. economic outlook after the Tokyo market recorded its second biggest daily percentage fall this year on Wednesday (March 14) on concerns about mounting problems in the U.S. subprime mortgage sector. The sector serves borrowers with poor credit histories and charges higher interest rates. Hong Kong stocks also made a comeback on Thursday rising 0.7 percent as China Mobile rebounded. The mobile giant's healthier day erased losses in HSBC which stayed soft. The benchmark Hang Seng Index ended at 18,969.44. Even though the markets have been volatile, some Hong Kong investors were confident, "I think the Hong Kong stock market will rebound. I am really confident, really confident," investor Emily Kei told Reuters.

ITN Source | March 16, 2007

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