Wsj 515 Thu Stock Summary

Regional Indexes End Mostly Higher A WALL STREET JOURNAL ONLINE NEWS ROUNDUP May 15, 2008 5:25 a.m.

Asian markets ended mostly higher Thursday. Japan rose on Sony's strong earnings but Hong Kong fell on concerns about the impact of China's massive earthquake. In Tokyo, the Nikkei 225 Stock Average rose 0.9% to 14251.74. Sony ended up 8.7% after rising as high as 10% as robust fiscal-year earnings and an optimistic outlook relieved investors. The inventor of the PlayStation video game said it slashed losses in its games business and swung to a net profit in the fiscal fourth quarter ended March from hefty losses a year earlier. Steel shares also rose on reports that Toyota accepted a steel-price increase and other auto makers are expected to follow. Toyota refused to comment. Nippon Steel jumped 7% and JFE Holdings climbed 5.34%. NEC Electronics jumped 14% after saying it expects its operating profit to double despite the negative impact of a rising yen against the dollar. However, oil-related shares were lower as crude oil prices fell overnight in New York. Inpex Holdings lost 1.5% and Showa Shell dropped 0.7%. Concerns over a likely slowdown in corporate earnings growth and a massive supply of new shares following the end of a lockup period sent China shares slightly lower Thursday, reversing gains earlier in the session. The benchmark Shanghai Composite Index, which tracks both Class A and Class B shares, ended down 0.6% at 3637.32, as concerns over a slowdown in corporateearnings growth and an influx of new shares reversed early gains. Bank of Communications dropped 1% as the lockup period for shares accounting for 27% of its share capital comes to an end. "Bank of Communications is the main killer for the market, as a total of 13.24 billion IPO-related shares of the bank will start trading from tomorrow," said Mo Fan, an analyst at Soochow Asset Management.

Despite the overall decline, electricity firms soared on expectations of further consolidation in the industry, after blue-chip Yangtze Power said its parent, China Three Gorges Project, plans to inject core business into the listed company. In addition, Sichuan-based electricity companies outperformed the sector on expectations for reconstruction demand after the earthquake. Sichuan Xichang Electric Power and Chongqing Jiulong Electricity Power both surged by the 10% daily limit. Meanwhile, Hong Kong's Hang Seng Index ended down 0.1% at 25513.71, as gains on brokerage upgrades failed to offset uncertainties related to China's massive earthquake. "Investors are still concerned that the actual severity of the earthquake hasn't been accurately assessed," said Y.K. Chan, fund manager at Phillip Asset Management. Despite the sluggish session locally for blue chips, Hutchison Whampoa jumped 5.5% after Citigroup upgraded the conglomerate to "buy" from "neutral." The investment bank said it expects the company to report "respectable earnings without exceptionals" in 2009. The upgrade also boosted Hutchison's parent, Cheung Kong, which rose 1.7%. Bank of East Asia gained 3.4% after Goldman Sachs added the stock to its conviction "buy" list on strong earnings forecasts and expansion in the lender's mainland China business. In Seoul, positive earnings outlooks from Samsung Electronics and LG Electronics helped lead the Korea Composite Stock Price Index, or Kospi, 2.3% higher to 1885.71. Shares of technology and electronics firms rose on a positive outlook for earnings and expectations their export competitiveness will improve on the weakness of the won against the U.S. dollar, said analysts. Bellwether Samsung Electronics rose 3.5%. LG Electronics ended at a record high, closing up 5.8%. China-linked firms did well on attractive valuations and expectations that they will receive more orders for restoration work following the massive earthquake there. Hanjin Shipping rose 5% while Korea Express gained 4.4%. Expectations for steelprice increases led Posco, the world's fourth-largest steelmaker by output, up 5.2% and Hyundai Steel up 4.2%.

Elsewhere, Australia's S&P/ASX 200 ended up 0.3% to finish at 5890.7 on gains in consumer-focused stocks. However, BHP Billiton closed down 1.2% on profit-taking after surging more than 6% Wednesday on rumors a Chinese entity was seeking to take a stake in the mining giant. Its rival and takeover target Rio Tinto climbed 0.9%. Shares in Coca-Cola Amatil jumped 5.7% after it reassured the market in its trading update that it was holding up against the deteriorating outlook for consumer spending and heavy discounting by rival Pepsi. The relief rally in Coca-Cola Amatil sparked gains in other consumer-focused stocks, with beer and wine maker Foster's Group gaining 5.2%. Retailers David Jones and Harvey Norman also rose, with David Jones jumping 7.1% while Harvey Norman added 6.4%.