Asian tech stocks down in morning trade

Old-economy stocks in Japan are getting a boost from reform hopes

By Staff and wire reports

TOKYO, Japan - Asian stocks were lower Friday, with technology shares in particular weighed down by Thursday's drop on the U.S. Nasdaq market.

Tokyo stocks were mixed at the midday close; The tech-heavy Nikkei average closed the morning down 0.7 percent at 13,879.22.

Bad news from Japan's largest cellular-phone maker, Matsushita Communication Industrial Co., weighed down the index.

Investors shied away from shaky technology shares, moving to more promising 'old economy' issues, hoping vows of reform by new Prime Minister Junichiro Koizumi would bear fruit.

"Visibility is a bit low for some of the major tech shares despite bullish forecasts," said Hideki Kamiya, senior fund manager at Asahi Tokyo Investment Trust Management.

"But hopes for the new administration has sentiment firm, and buyers are actively looking for value in more traditional sectors," he said.

Housing stocks jump

Housing builder Haseko Corp. jumped 20.9 percent to 52 yen on a report it managed to record positive net worth for the first time in two years.

Fellow builder Hazama Corp, leapt 14.8 percent to 62 yen. It raised its profit estimate for the year ended in March to 2.3 billion yen from 1.0 billion.

Gains in such low-priced old economy shares helped the capital-weighted Topix index tack on 0.2 percent to 1,362.44.

Matsushita Communication slid after missing profit targets a day earlier. Its stock plummeted 10.1 percent to 6,800 yen.

It announced profits for the past year came in softer than planned, amid slowing global demand and a software glitch in its mobile handsets. It expects even tougher times this year.

PC and chipmaker Fujitsu gave up 4.8 percent to 1,707 yen. Industry rival NEC lost a less-pronounced 0.5 percent to 2,235 yen.

They also missed forecasts on Thursday, but said profits would pick up later this year, guardedly confident the sluggish chip market would recover this autumn.

Traders said weakness in major technology shares would likely weigh on the market in the afternoon amid caution ahead of earnings announcements from big names, including Sony Corp. and Toshiba Corp.

Investors were also booking profits ahead of a long weekend. Tokyo's markets will be closed for a holiday on Monday.

Hong Kong down 1.2 percent

Hong Kong stocks also opened lower on Friday. The benchmark Hang Seng index was down 1.2 percent to 13,140.21 shortly after 10 a.m.

Telecom heavyweights China Mobile and Hutchison Whampoa dropped after an overnight fall on U.S. technology stocks.

Wall Street ended mixed on Thursday. The Dow Jones industrial average rose 0.6 percent on hopes of further interest rate cuts. The tech-heavy Nasdaq composite index fell 1.2 percent.

China Mobile, China's dominant cellular carrier and the world's second biggest mobile phone company by subscriber base, slipped 1.6 percent to HK$37.30.

Hong Kong's markets will be closed on Monday and Tuesday for public holidays.

One analyst said some investors were clearing long positions on China-linked stocks that have gained in recent days ahead of the holidays.

Markets were also down in South Korea and Taiwan.

Seoul's benchmark Kospi index was down 0.8 percent at 556.99. The Taiex index in Taiwan was off 0.8 percent at 5,476.32.

In Singapore, the Straits Times index was up 0.6 percent at 1,680.40.

Reuters contributed to this report.

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