Executive Business Briefing

Here is a look at some of Tuesday's top business stories:

Most Asian markets rise on Cisco news

SINGAPORE, Nov. 6 (UPI) -- Most key Asian stock markets moved higher Tuesday after Wall Street's overnight rise and better-than-expected first quarter results of Cisco Systems gave some hope to the technology sector.

However profit-taking ahead of an anticipated 10th consecutive interest rate cut in the United States was also noted across the board.

Tokyo shares ended slightly higher with high-tech counters supporting the market. The Nikkei 225 Stock Average rose 186.18 points to 10633.72.

NEC climbed 4.4 percent, Hitachi rose 1.8 percent, Fujitsu added 2.4 percent and Toshiba gained 1.6 percent.

But extending its losing streak to seven sessions, Mitsubishi Tokyo Financial Group dropped 1.6 percent. Takeda Chemical Industries erased morning losses to close up 3.6 percent after the drug maker said sales and profits grew strongly in the first half ended September.

The Taiwan weighted index closed up 2.41 points at 4,082.92, its day's low, as profit-taking crept in.

The Korean composite index closed up 3.85 points at 565.47, with financials leading the way higher on expectations the Bank of Korea will cut the overnight call rate by 25 basis points, in line with a much-anticipated rate cut at the Federal Open Market Committee meeting.

In Jakarta, shares were higher on a technical rebound ahead of the Consultative Group on Indonesia's meeting Wednesday. The controversy surrounding the illegal "takeover" of Semen Padang by a local community continued to pressure Semen Gresik. The composite index closed up 0.215 points at 375.429.

In Bombay, shares closed also higher led by the software sector after Cisco's announcement.

But profit-taking dominated activity in Hong Kong, with the Hang Seng Index closing down 74.67 points at 10,356.05. Selling hit most property stocks, except Sun Hung Kai Properties and Henderson Land, which gained support from the positive pre-sale response to one of their residential development.

This selling spilled over to Singapore, which was dragged down by the banking sector and a few blue chips, including Singapore Airlines. The Strait Times Index closed down 5 points at 1335.01.

Shares in Kuala Lumpur fell on light foreign institutional selling of selected blue chips. The KLSE composite index closed down 0.01 percent at 592.75.

In Manila, the All Shares index was down 0.53 points at 657.08 as a sell-off in PLDT spilled over to other blue chips. Despite strong nine months results, PLDT shares fell on concerns over its debt burden.

In Thailand, shares closed slightly lower in light trading. The SET index was down 1.55 points at 271.44.

Euro zone speculates on interest cut

BRUSSELS, Belgium, Nov. 6 (UPI) -- European markets are speculating that euro-zone interest rates will be cut Thursday after statements by various EC officials that followed a euro-group meeting Monday night.

Pedro Solbes, the European Commissioner responsible for economic and monetary affairs, part of the EU executive, said news that the expected euro-zone inflation rate had fallen by 2.4 percent remarked gave the euro-zone "more room for maneuver."

Euro-group chairman and Belgian Finance Minister Didier Reynders described the new inflation rates as "good news." He added that "the euro-zone economy is not in recession yet."

But the upbeat remarks contrast with the unusual intervention of normally dovish Bundesbank President Ernst Welteke, who was reported in interviews as hawkish on the issue stating that now was not the time to cut interest rates.

He said that the ECB should avoid creating a "speculative bubble" undermining speculation that the bank is likely to cut interest rates.

Belgian Minister Didier Reynders said of reports that the Belgian state-owned airline Sabena would be filing for bankruptcy Wednesday that management was negotiating with two white knight airline companies.

British Virgin Airways, owned by the multi-millionaire Richard Branson was, he said, in negotiations with another company.

A commission spokesman expressed concern at the transfer of Sabena asset, the local airline DAT, saying that there was concern about state funding. The commission says DAT was bailed out by the Belgian government.

Japan electronics face huge losses

TOKYO, Nov. 6 (UPI) -- The falling economy in the United States, aggravated by the Sept. 11 terrorist attacks, has had repercussions in Japan's electronics industry, with the seven leading manufacturers likely to suffer a combined losses of $8.3 billion in the fiscal year ending March 31, 2002, the Nikkei Weekly reports.

Based on company sources and estimates by Nihon Keizai Shimbun, Japan's leading financial daily, Fujitsu Ltd., Japan's largest computer maker, anticipates the largest loss, a $2.6 billion setback blamed on poor sales and falling semiconductor prices.

Matsushita Electric Industrial Co., one of the world's largest seller of consumer electronics and maker of National, Panasonic, Technics and Quasar brand products, forecasts a loss of $2.2 billion, with huge losses in sales of cellular phones and videocassette recorders.

Hitachi Ltd. expects a group net loss of $1.9 billion, largely blamed on falling semiconductor prices.

Other big losers based on estimates and company reports are Toshiba Corp., $1.7 billion; NEC Corp., $1.3 billion; Sony Corp., $83 million; and Mitsubishi Electronic Corp., $17 million.

Noboru Ishimara, chief analyst at Nomura Securities Co., said the companies bet on the growth of information technology beginning last year and expanded their investments. It was a bad idea. "The product gap between demand and supply will not dissolve before early 2003," Ishimara told The Nikkei Weekly.

By contrast, two other firms with IT-related products are expecting record profits. Ricoh Co. and Canon Inc., have increased sales of digital copiers with improved technologies and strong after sales services.

Ricoh anticipates a record yearly profit of $492 million, and Canon, which expects its digital camera sales to double, forecasts group net profit to increase 20 percent to $1.3 billion for its fiscal year ending Dec. 31.