Asian markets lower on earnings fear

Japan's market failed to hold gains made last week, trading weaker on Monday

HONG KONG, China -- Asian markets edged lower Monday on worries over earnings announcements from U.S. tech firms this week.

In Tokyo, stocks dipped by midday on Monday, as investors cashed in on recent gains in high-tech shares.

The benchmark Nikkei average ended the morning down 1.15 percent at 13,231.73, while the TOPIX index fell 0.48 percent to 1,292.93.

Within the region, markets in Australia, New Zealand, Hong Kong and Thailand were closed.

In Japan, traditional manufacturers, such as steel makers and shipbuilders, avoided the weak trend following an announcement of a merger deal between Japan's two biggest steel companies.

NKK Corp and Kawasaki Steel Corp said on Friday they had agreed to set up a joint holding company in October 2002 to create Japan's top steel making group, surpassing Nippon Steel Corp on a group basis.

Gaining confidence in old manufacturers

Traders noted the latest in a series of industry reshuffles would help raise investor confidence in Japan's traditional manufacturers.

NKK, currently Japan's number two by crude steel output, gained 6.03 percent to 123 yen, extending Friday's 12.6 percent rise, while Kawasaki Steel, the third-largest, jumped 7.75 percent to 139 yen.

"First we saw realignment in the banking sector, followed by autos, then shipbuilding and now steel. This move by Old Japan manufacturers to help themselves is certainly a plus, not only for these sectors but for the overall economy," said Hiroichi Nishi, a general manager at Nikko Securities.

In South Korea, stocks edged lower in early trade, led by SK Telecom, as investors took profits from last week's 2 percent gain in the benchmark index.

The Korea Composite Stock Price Index was down 0.21 percent at 515.03.

Top mobile phone carrier SK Telecom was down 2,500 won at 189,500, while the state-run Korea Telecom eased 200 won to 54,800.

Samsung Electronics, the world's largest memory chipmaker, was down 500 won at 202,500.

In Taiwan, worries over corporate earnings and first quarter corporate results from U.S. and local firms pushed stocks lower in early trade. The benchmark TAIEX index was down 0.50 points at 5,468.26.

Reuters contributed to this report.

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