Asian Shares Rise Before Weekend; Tech Stocks Solid

(MarketWatch) -- Asian shares were higher Friday, led by technology stocks after their U.S. peers gained on hopes for better demand and some stability in the economy there.

Japan's Nikkei 225 was up 2.2% with Australia's S&P/ASX 200 up 1.5% and South Korea's Kospi Composite up 0.7%. Hong Kong's Hang Seng Index was up 1.9% with Taiwan's main index up 0.7% but the Shanghai Composite Index down 1.9%.
"It's all reasonably positive at the moment," with U.S. bank earnings so far not a major cause for concern, said MF Global senior trader Anthony Anderson in Australia.
All eyes though were on Citigroup's report, due later Friday. "If it doesn't throw up too many surprises we're probably going to test high levels," Anderson said.
Wall Street gained Thursday amid hopes for an economic bottom in the U.S., though U.S. stock futures were mildly lower in screen trade as the weekend drew near.
Google shares erased an initial late-session gain to be down 0.1%, despite news its first-quarter net income rose 8.9% on higher revenue and U.S. paid clicks for Internet searches, with the results topping Wall Street's estimates.

And Federal Reserve Bank of San Francisco President Janet Yellen sounded a note of caution on the U.S. outlook. "The global nature of the downturn raises the odds that the recession will be prolonged, since neither we nor our trade partners can look to a boost from foreign demand."

Barclays Capital analysts said sentiment had improved dramatically over the past month, with risky assets rallying. "The verdict is still out on whether this is just another bear market correction or a sign of better times to come."
In Asia, Toshiba was up 4.1% after the company said it likely sustained a group operating loss of around Y250 billion for the year ended last month, a narrowing from its existing estimate of a Y280 billion loss, helped by output cuts by chipmakers

Asian tech shares generally were finding buyers with Samsung Electronics up 2.9%, LG Electronics up 4.3% and Hynix up 8.3%. Sony added 4.9% in Japan with TDK up 5.8% and Elpida up 6.7%.

Taiwan's Nanya Technology was up 3.1% with Inotera Memories up 6.7%, helped by a recent rise in DRAM prices. Nanya said Thursday it planned to raise contract chip prices 10% in the latter part of April; "contract prices will likely remain strong throughout this year amid an expected supply shortage although demand won't likely to pick up any time soon," said Kim Gee-soo at Goodmorning Shinhan Securities.
LG Display added 4.2% in Seoul. It posted its second-straight quarterly net loss in the three months ended March 31, but the flat-panel maker signaled better results in the current quarter.

Financial stocks were gaining across Asia with National Australia Bank up 2.0% and Commonwealth Bank of Australia rising 2.0%, too. Korea's KB Financial was up 1.8%, with bank stocks helped by Thursday's rise in JPMorgan Chase shares in the U.S. after its results.

Tourism stocks gained in Taiwan before cross-strait trade negotiations, with Formosa International Hotel up 3.4% and China Airlines higher by 0.7%.
Cathay Pacific Airways was up 0.7% in Hong Kong, even as it said it was reducing its passenger and cargo capacity and would ask some staff to take unpaid leave over the next 12 months.

Hong Kong developer stocks were higher, helped by brisk sales at Cheung Kong's new project Central Park Towers II, with Cheung Kong up 1.7% and Sino Land up 4.6%.


Read more here