Foxconn Surges in Hong Kong, Miners and Japanese Chipmakers Soar

Key Asian indexes closed higher Tuesday with Hong Kong's Hang Seng Index climbing 2.1% to 22,280. China's Shanghai Composite Index rose 1.2% to 3,282 and Japan's Nikkei added 0.3%, ending the day at 10,682.Hong Kong-listed Foxconn (FXCNF) surged 6.3% today, adding to yesterday's jump in share price. The electronics maker, which currently supplies parts for Apple iPhones, is the talk of the town. Foxconn is on the brink of adding 16 new Cybermart stores in China to its existing 34, according to Excitement is brewing over rumors that a division of the Taiwan-based company will be providing the screen for the Apple Tablet, due out later this quarter, according to Business Week. Another rumor making the rounds, is that Foxconn has secured a contract to manufacture handsets for U.K. wireless provider Orange, although Foxconn has reportedly denied this in a document filed to the Taiwan stock exchange.

%%DynaPub-Enhancement class="enhancement contentType-HTML Content fragmentId-1 payloadId-61603 alignment-right size-small"%% In other sectors, natural resource and mining companies rallied today with gold miners soaring after gold rose 2.4% yesterday. Gold miner Zijin Mining (ZIJMF) rocketed up 11% and Zhaojin Mining climbed 10%. Aluminum Corp. (ACH), otherwise known as Chalco, surged 9.1% and Jiangxi Copper (JIXAY) rose 7.5%.

Hong Kong-listed PetroChina (PTR) advanced 5.9% and Cnooc (CEO) gained 5.7%, while a weather forecast of below freezing temperatures for China in the days to come sent shares of Chinese mainland coal miner Yanzhou up 8.5% and China Coal Energy (CCOZF) up 7% on the Hong Kong board.

In China, brokerage companies were on the rise with China Everbright Securities hitting its 10% daily limit and Citic Securities gaining 4.9%. Real estate companies, however, hit the skids in anticipation of a possible property tax. Poly Real Estate fell 3.1% and China Vanke dropped 2.3%.

In Japan, the Tokyo Stock Exchange's new and faster Arrowhead trading system was in fine working order after yesterday's debut. Sumitomo Mitsui Financial Group closed 1.5% higher. According to Reuters, the bank is considering selling stock to the tune of $8.7 in a move to raise capital.

Meanwhile, Japanese computer chipmaker Elpida Memory surged 6.6% on speculation that its Taiwanese subsidiary, Rexchip Electronics, will invest update production lines in order to increase production and lower manufacturing costs over the next year. According to Reuters, the two companies will also set up a research and development center in Taiwan -- a high-tech start to 2010 in a country that can only hope its era of lost decades are behind it.
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