Asian stocks give up gains by close

Bridgestone president Shigeo Watanabe announced Tuesday the end of the company's supplier relationship with Ford

By Staff and wire reports

HONG KONG, China -- Asian stocks slipped in late-afternoon trade. They were unable to hold onto early gains driven by Nasdaq's good performance on Monday.

But Australian stocks continued their impressive run, closing at another record.

Tokyo's Nikkei 225 average ended the day down 0.6 percent at 14,091.19. Doubts about Japan's economy reversed early gains.

The Nikkei had gained as much as 1.2 percent earlier Tuesday, on strength in high-tech issues such as Sony Corp. and NEC Corp.

They enjoyed jumps after Nasdaq closed up 4.9 percent at 2,305.55 on Monday. Computer and chipmaker NEC finished up 2.5 percent at 2,280 yen. Electronics titan Sony edged 0.2 percent lower to 10,150 yen after marking a year-to-date high of 10,340 yen.

The broader, capital-weighted Topix index sagged 0.3 percent to 1,379.76.

Bridgestone a big loser

Bridgestone Corp. took a pounding after its U.S. subsidiary severed a century-old relationship with Ford Motor Co. Bridgestone stock plunged 9.36 percent to 1,268 yen.

The company said it would lose 2 percent of revenues worldwide. Investors worry it would lose market share.

In its May report, the Bank of Japan on Monday kept its same headline reading on the economy. But it lowered its outlook for most business sectors.

"The Wall Street rises are nice, but in the end it really comes down to fundamentals at home -- and right now they don't look so good," said Yoshinobu Muraoka, fund manager at DLIBJ Asset Management.

Furukawa Electric Co. ended down 1.3 percent to 1,405 yen after rising in the morning. Japan's top fiber-optic parts maker said group net profit would shrink 81 percent to 32 billion yen for the year through March 2002, hit by a slowdown in spending.

Australia, Hong Kong better than other Asian markets

In Australia, the benchmark S&P/ASX 200 index nudged up 1.2 points to 3,436.5. That narrowly topped Monday's record close.

The index has risen 9.3 percent since hitting its 2001 low on March 23.

Investors remained cautiously upbeat about prospects for an Australian recovery, which some observers believe will come ahead of Asian markets.

Australia didn't roar up on tech gains like the rest of Asia. Again on Tuesday, blue chips such as banks, miners, and industrials benefited more than speculative sectors such as high tech.

Miner BHP, soon to merge with London-listed Billiton PLC, gained seven cents to A$23.47. Anglo-Australian miner Rio Tinto rose 65 cents or 1.7 percent to A$38.60.

Oil and gas producer Woodside Petroleum climbed 2 percent to A$15.20.

Recent gains in gold stocks were undone after almost every gold producing nation took advantage of the higher prices by selling reserves.

Hong Kong ended the day up almost as much as Sydney. The benchmark Hang Seng index rose 1.1 percent to 13,877.95.

The market was driven by gains in automotive stocks, after a report that the Chinese government plans to deregulate car prices.

Chinese technology companies such as Legend, the country's largest computer maker, and China Mobile, its biggest cellular phone operator, benefited from renewed interest among tech investors.

Kospi narrowly down, Taiwan gains

In South Korea, the Kospi closed narrowly down after setting an eight-month high during the day. It gave up 0.2 percent for the day, finishing at 617.99.

Investors are hoping for a sustained economic recovery. That bid up stocks like Hana Bank, which had been beaten up but rose 10.4 percent Tuesday to 7,950 won.

Samsung Electronics, the biggest stock by market cap, rose 0.9 percent to 231,000 won.

In Taiwan, the benchmark Taiex finished the day 0.7 percent to the good at 4,991.48.

Taiwan's market is highly sensitive to U.S. technology gains, given its large number of chip makers and heavy U.S. exports.

Taiwan Semiconductor Manufacturing Co. rose 1.7 percent to T$90. Rival United Microelectronics Corp. rose 2.9 percent to T$52.50.

Stocks were off in Indonesia, Pakistan and the Philippines late on Tuesday.

Reuters contributed to this report.

Note: Pages will open in a new browser window

External sites are not endorsed by CNN Interactive.