Japan closes down on bank watch

By Staff and wire reports

HONG KONG, China - Asian markets lost ground Wednesday. Investors worried about earnings in Japan.

But tech-heavy markets in Taiwan and South Korea rose.

Tokyo stocks dipped for the second straight session. Investors were cautious ahead of results for Japan's big banks.

The benchmark Nikkei average closed down 0.2 percent at 14,067.70. It had risen as high as 14,205.09 in morning trade.

The broader capital-weighted Topix gave up 0.3 percent to 1,375.23.

The world's largest bank group, Mizuho Holdings Inc., slid 2.5 percent to 675,000 yen. It reports earnings Friday.

Time to take the medicine

That dragged down both indexes and dulled the response to Nasdaq's sixth straight day of gains.

"We know the banking sector's report card will not be so rosy, but we need to see the numbers anyway," said Hidenori Karaki, equities general manager at Tokyo Mitsubishi Personal Securities.

At least four of the eight big banks are expected to be in the red when they unveil earnings this week for the year just ended.

Sumitomo Mitsui Banking Corp., the world's second-biggest bank, fell 3.87 percent to 1,044 yen. It reports on Thursday.

Nasdaq's gains boosted techs. Bellwether Sony Corp. rose 0.5 percent to 10,200 yen.

Matsushita Electric Industrial Co. threw on 2.4 percent to 2,325 yen. The world's biggest consumer electronics group had already gained 8.9 percent in the last four days on an alliance with Hitachi Ltd.

But game company Sega was down 130 yen to 2685 yen after reporting a record loss Tuesday for last year. In a bid to restore profitability, Sega will focus on game software rather than consoles.

Bridgestone unchanged

Bridgestone Corp. ended unchanged at 1,268 yen in a see-saw session.

It had plunged 9.36 percent on Tuesday on news its embattled U.S. subsidiary, Firestone, was severing a 95-year tie with Ford Motor Co., stoking fears of lost market share.

Ford responded by announcing a recall of 13 million Firestone tires on its vehicles. But investors welcome Bridgestone's more-aggressive stance.

Like Japan, Hong Kong's Hang Seng index closed down. It ended the day off 0.3 percent at 13,839.10.

Property stocks had led the index higher in the morning. A government report showed a slower rate of decline in rental prices for April.

China-related technology stocks were also enjoying good gains.

Australian shares backed off Tuesday's record close. The benchmark S&P/ASX 200 index finished 0.3 percent lower at 3,426.7.

The market has benefited from its lack of tech exposure. But it succumbed to profit taking in the wake of its recent stellar run.

Australia takes a breather

Australian stocks are still up 6.9 percent from the end of last year, and strategists warn the market may have gotten ahead of itself.

Traders said they saw no connection between Wednesday's slide and the release of the 2001-02 budget late on Tuesday. The Australian government delivered a larger than expected surplus of $780 million for 2001-02 and was upbeat on the economy.

News Corp., which represents about 11 percent of the index, fell 1 percent to A$17.91, taking its lead from a 0.7 percent overnight slide in the Dow Jones industrial average.

Among the big miners, BHP, which will soon merge with London-listed Billiton PLC, sagged 10 cents to A$23.37.

Banks were mostly stronger, led higher by a 23-cent rally in Australia's biggest bank, National Australia.

Taiwan up more than 4 percent

In Taiwan, the benchmark Taiex rocketed 4.4 percent to 5,209.97. That's its largest daily percentage gain in over four months.

Electronics stocks saw it through the psychologically important 5,000 barrier. Investors were attracted by the sharp depreciation in the Taiwan dollar, which makes exports more attractive.

It hit a 31-month low against the U.S. dollar on Monday.

Personal-computer maker Acer rose the 7 percent daily limit to T$19.40. Microchip maker Winbond rose 6.5 percent to T$31.

Microchip maker Macronix also rose 7 percent to T$34.10, after closing up the full limit on Tuesday.

South Korean stocks held onto recent gains. The benchmark Kospi rose 0.8 percent to 622.60.

Construction companies benefited from a government plan to jump-start the sector with tax exemptions.

Hankook Tire rose the daily limit of 15 percent, to 3,190 won. It is a Ford supplier and may benefit from Firestone's decision.

Reuters contributed to this report.

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