DATE= 5/10/2002

TYPE= CORRESPONDENT REPORT

TITLE=ASIA WEEK/MARKET WRAP (L-O)

NUMBER=2-289649

BYLINE= KATHERINE MARIA

DATELINE= HONG KONG

CONTENT=

VOICED AT:

INTRO: Asian markets ended down this week, after falls on Wall Street prompted investors in Asia to retreat. As Katherine Maria in Hong Kong reports, tech stock saw the biggest losses.

TEXT: In Tokyo, the Nikkei ended the week at 11-five-thirty-one, down zero-point-two percent from last week's level. Technology shares of mobile phone giant DoCoMo were down three-point-one percent Friday, after two days of gains.

Mark Mathews, chief strategist at Standard and Poor's Asia operation, said that, while Japan's economic indicators are looking somewhat healthier than before, investors have few incentives to buy.

/// MATHEWS ACT ///

Japan has now officially joined the camp of the Asian recovery story with Malaysia, Singapore, Taiwan and Korea, in registering a year-on-year increase in its exports. The problem is that stocks in Japan, particularly in the technology sector, are rather expensive, and I think that's why it's trading sideways (EDS: means flat; neither up nor down) right now.

/// END ACT ///

In Seoul, the Kospi index ended the week at eight-hundred-and-17, almost five percent down on the week. Samsung electronics slid seven-point-seven percent Friday, hitting an eight-week low after U-S-B Warburg cut Samsung's ratings from 'strong buy' to 'hold'.

Hyundai Motor also slid five percent on fears the company won't be able to match its first quarter profits.

Tech shares in Taiwan showed small gains on Friday, following mid-week losses. The main Taiex share index, however, ended one-point-seven percent down from last week, closing at five-thousand- eight-hundred-and-seven.

In Hong Kong, a tumble in property shares led the Hang Seng index down to close one-point-two percent off from last Friday. Still, the index remains nearly 10 percent higher than a month ago.

Mr. Mathews says that, despite a recent pick up in property prices in Hong Kong, developers are still offering big discounts.

/// MATHEWS ACT ///

A sustainable recovery in property prices in Hong Kong, I don't think, is going to happen. If you don't see at least a little mild inflation in property, then I don't think the stock market rally is sustainable.

/// END ACT ///

Trading in Hong Kong was slow. (Signed)

NEB/KM/MAR/TW