Asian stocks jump on Iraq war news

<a href=www.upi.com>UPI From the Business & Economics Desk Published 4/7/2003 6:59 AM

SINGAPORE, April 7 (UPI) -- Asian stocks markets powered ahead Monday on news U.S. tanks had stormed into central Baghdad, with investors speculating the war in Iraq could quickly end.

Investors seem to forget for a day concerns about the on-going spread of the severe acute respiratory syndrome and its economic impact on the region.

In Tokyo, the Nikkei average rose 2.18 percent to 8,249.98, led by a few blue chips like Sharp Corp, up 4.16 percent.

Opening the earnings reporting season for the 2002-03 business year, Aeon Co rose 2.81 percent after it announced a return to profit due to strong clothing sales.

Shares in Yakult Honsha also jumped 10.27 percent on speculation that French food group Danone, which has raised its stake in the Japanese drink maker, may seek business ties or an even bigger share. There was also some rumor that a sweet milk-like drink produced by Yakult has a preventative effect against the severe acute respiratory syndrome.

In Hong Kong, the Hang Seng Index jumped 1.58 percent to 8,962.21 points led by property and telecom stocks. China Mobile rose 4.14 percent, rival China Unicom was up 3.43 percent, while bargain hunting on property counters lifted Cheung Kong, 2.49 percent and Henderson Land Development, up 2.93 percent.

In Taipei, the TAIEX share index rose 1.70 percent at 4,575.83, led by technology stocks such as Nanya Tech, up 7 percent and rival Winbond Electronics up 4.64 percent. TSMC gained 2.21 percent.

In Singapore, the key Straits Times index rose 1.91 percent to end at 1,338.83, a 10-week high. Blue chips like Singapore Airlines, up 2.16 percent, benefited from hopes of a swift end to war. Property counters also rose on bargain-hunting after recent sharp losses. City Developments gained 3.87 percent and Keppel Land surged 5 percent.

The Kuala Lumpur Composite Index added 1.5 percent to 640.35, a fresh one-month high, with casino-and-leisure group Genting leading the pack, up 4.8 percent. The stock had been under heavy selling pressure on concern about the impact of SARS and the war in Iraq will have on its business.

In Jakarta, the main index rose 4.47 percent to 423.814.

The Thai and Philippines markets were closed for national holiday.