Cisco tripling puts techs on track

Ray Heath12 April 2012

ASIAN technology stocks were climbing back up the yo-yo string today, jerked out of recent falls by upbeat profits from Cisco Systems overnight.

Tokyo

Cisco shares soared 12% in after-hours trading after the internet services group shocked analysts by tripling its earnings in the third quarter. Cisco is regarded as a key company at the crossroads of many technology highways, and the unexpectedly strong earnings were seen as good news for any Asian companies with interests in telecommunications or computers.

The US Federal Reserve Board's lack of action on interest rates had been widely anticipated, but its no-change decision did not prevent Australia's central bank from upping its rates, following South Korea's move on Tuesday.

Trade in Singapore was dominated by a 16% surge in the price of brand-name trader FJ Benjamin following news that it planned to open a chain of Manchester United restaurants in China and elsewhere in Asia.

Tokyo's top technology performers were components maker TDK, which crammed on 6%, and communications equipment manufacturer Kyocera, which was ahead by 5%.

Carmakers were lifted by the fall in the value of the yen to its lowest level in two months. Nissan Motor led with a 2.6% gain, which was bolstered by the unveiling of a new models aimed at the US market.

Mobiles giant NTT DoCoMo eased before full-year figures due today which are expected to show record losses. South Korea broke its recent losing streak as Cisco's news lifted Samsung Electronics and other chipmakers, and shares in brokerages also bounded as much as 8% on expectations of solid earnings this year. The Kospi rose 16.60, or 2%, to 842.94.

Taiwan rallied for the second day as its financial sector responded to restructuring moves and computer-related counters joined the regional rush. The Weighted Average rose 58.68 to 5722.66. Bank shares soared as CTB stock hit its daily upward limit of 7% after agreeing to merge with a rival to create the country's largest banking house.

The lack of movement in US interest rates also spurred some buying of Hong Kong bank and property stocks, but this was not powerful enough to offset some dips among other blue-chips, and the Hang Seng index lost 27.7 to 11,768.3.

Australian stocks responded briskly to the Reserve Bank of Australia's 25-basis-point rise in interest rates to head off inflation in the fast-expanding economy. The All Ordinaries jumped 66.2 to 3339.9 as investors returned to recently friendless growth stocks. Coles Myers, the retail giant that had been badly mauled after downgrading its profits outlook, recovered almost 3% but the interest rate moves left bank shares weaker on fears that margins will be squeezed.

With technology stocks also responding to the Cisco news, Singapore's Straits Times index added 5.8 points to 1726.8. The Kuala Lumpur Composite index rose 4.40 to 794.33, Thailand's SET index was 3.21 better at 377.86, and the Jakarta Composite strengthened 5.34 to 550.23.

Prices and indices in this section are supplied from various sources and calculated at different times and may not always match those listed in the tables.

Create a FREE account to continue reading

eros

Registration is a free and easy way to support our journalism.

Join our community where you can: comment on stories; sign up to newsletters; enter competitions and access content on our app.

Your email address

Must be at least 6 characters, include an upper and lower case character and a number

You must be at least 18 years old to create an account

* Required fields

Already have an account? SIGN IN

By clicking Create Account you confirm that your data has been entered correctly and you have read and agree to our Terms of use , Cookie policy and Privacy policy .

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged in