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 corporate-
earnings 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 steel-
price 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%.