ADR Report - ADRs rise on LatAm rally

Reuters, 05.29.03, 2:14 PM ET

NEW YORK, May 29 (Reuters) - U.S.-traded shares of foreign companies traded higher on Thursday, bolstered by a rally in Latin American and Asian issues.

Leading the Latin American issues were Brazilian and Venezuelan companies. Investors bid up Brazilian shares despite news that its economy grew by a modest 2 percent in the first quarter over last year, sustained by booming exports. "People feel positive about Brazil and like what's been happening in the economy and that the government continues to follow through on reforms," said Hugo Rubio, international equities trader at Lazard Freres.

Shares of Unibanco Holdings S.A. (nyse: UBB - news - people), one of Brazil's biggest banks, jumped 4.5 percent to $18.19. In Venezuela, CANTV (nyse: VNT - news - people), the country's leading telecommunications company, rallied 7.5 percent, or 89 cents, to $12.74. Investors were cheered by news that Venezuela's President Hugh Chavez and his foes agreed last Friday to a referendum on his rule, Rubio said. Opinion polls show that Chavez would most likely lose a referendum.

"Most businessmen would prefer Chavez to get out of office," Rubio said.

The Bank of New York's index of ADRs <.BKADR>, or American Depositary Receipts, rose 0.77 percent, and the bank's index of leading Latin American ADRs <.BKLA> jumped 1.2 percent.

Overnight in Tokyo, the benchmark Nikkei average <.N225> ended up 1.71 percent at its highest finish since March 24, while the broader TOPIX index <.TOPX> rose 1.44 percent to a three-month high.

Among key Japanese issues, Sony Corp. (nyse: SNE - news - people) jumped 2.1 percent, or 56 cents, to $26.91, a day after the world's top consumer electronics maker unveiled a new video entertainment device called the "PSX."

Taiwan stocks helped push up the Bank of New York's index of Asian ADRs <.BKAS> 1.09 percent by late afternoon.

Shares of Taiwan Semiconductor Manufacturing Co. (nyse: TSM - news - people), the world's biggest contract chipmaker, rose 1.7 percent, or 16 cents, to $9.63.

The Bank of New York's index of European <.BKEUR> edged up 0.66 percent. Leading technology stocks gained in tandem with a slight rise in the Nasdaq market, but were offset by declines in large-cap oil companies.

Shares of Geneva-based STMicroelectronics (nyse: STM - news - people), Europe's biggest chipmaker, rose 1.3 percent, or 28 cents, to $22.39. But Britain's BP Plc (nyse: STM - news - people), one of the world's biggest integrated oil companies, slipped 3 cents to $42.07.