Asian Internet Stocks Soar on Predictions

Shares of Pacific Internet Ltd., China.com Corp. and Internet Initiative Japan Inc. rose Monday amid optimism that Asian Internet companies will grow faster than their U.S. counterparts, analysts said.

Singapore-based Pacific Internet (PCNTF) soared $22.94, or 49%, to $69.88, while Tokyo-based Internet Initiative Japan’s American depositary receipts (IIJI) surged $22.81, or 23%, to $120, and Hong Kong-based China.com (CHINA) rose $15.38, or 20%, to $94. All three trade on Nasdaq.

As U.S. companies such as America Online Inc. and Yahoo Inc. begin to mature, investors are looking for Internet stocks with faster growth, analysts said. Internet commerce in Asia outside of Japan is expected to more than double each year, reaching $102.5 billion in 2004, market research has shown.

“People are looking to the regions that are emerging,” said Drew Ianni, an analyst at Jupiter Communications Inc.

Electronic commerce in the region is expected to more than double to $5.7 billion this year, from $2.2 billion in 1999, while the number of Internet users is expected to expand to 34% annually over the next four years to 94.95 million customers, according to International Data Corp.