Asian stocks close down

Japanese investors are still waiting for more reforms from Koizumi, whose popularity has risen to a record 87 percent

By Staff and wire reports

HONG KONG, China -- Asian stocks closed down Monday.

Bank earnings led Japanese stocks lower. Taiwanese stocks dropped on worries about its economy, with the Taiex losing 1.8 percent.

Hong Kong and Australia were marginally weaker, while Korea's Kospi index was down 0.9 percent.

Tokyo stocks slid for the fifth straight day. The benchmark Nikkei average closed down 0.2 percent at 13,737.77. The tech-heavy index has now lost 3.1 percent in its five-session losing streak.

The broader Topix index dropped 0.75 percent to 1,349.77.

Gains in companies with good earnings couldn't offset losses in bank stocks such as Mizuho Holdings.

Mizuho, the world's largest banking group by assets, fell 6.4 percent to 628,000 yen, extending Friday's 3.3 percent slide.

Eight big banks reveal worse loan problem

Japan's eight big banks are in earnings season. Their numbers late last week showed problem loans had edged 1.5 percent higher to 17.95 trillion yen ($149 billion) at the end of March.

Analysts had hoped they were dropping. "Those figures drove home how damaged their balance sheets are." said Tatsuhiko Takura, general manager of investment research at Tokio Marine Asset Management.

Mitsubishi Tokyo Financial Group shed 3.4 percent to 1.14 million yen. On Thursday, it declared problem loans of 4.46 trillion yen as of March 31. That compares with 2.87 trillion yen of bad loans a year ago.

The other two of Japan's "Big Four" banking groups were also lower, with UFJ Holdings Inc slipping 5.0 percent to 721,000 yen.

Sumitomo Mitsui Banking Corp., the world's second-biggest bank by assets, lost 3.82 percent to 1,008 yen.

"Their earnings gave us a confirmation the situation remains quite tough for the banks. No one would be surprised if their bad loans would have ballooned further by this time next year," said Koji Hayakawa, equities general manager at Ichiyoshi Securities.

Yokohama rises on good forecast

Isuzu Motors Ltd closed up 3.9 percent to 290 yen after Japan's largest truck maker said it would cut its workforce by 9,700 jobs, or 26 percent, over the next three years.

Isuzu also forecast a profit of 1 billion yen in the next fiscal year.

Yokohama Rubber Co Ltd., another traditional manufacturer, also gained. It rose 6.3 percent to 270 yen.

Japan's second-biggest tire maker on Friday forecast profits of 8 billion yen for the year through next March, due to healthy tire demand at home.

Yokohama may also gain from problems at Bridgestone Corp., which is battling Ford over a tire recall. Bridgestone finished Monday down 3.7 percent at 1,300 yen.

Hong Kong, Australia down

In Hong Kong, the benchmark Hang Seng index closed down 0.1 percent at 13,739.07

Red chips, stocks of companies that do most of their business in China, were pacing the market again. They have been bid up on China's growth rate, the highest in Asia, and the prospect of a capital injection from Beijing on June 1.

Property company New World China Land Ltd. was showing good gains.

Australian shares finished modestly weaker. Investors weren't ready to commit after a poor showing from U.S. markets on Friday.

The benchmark S&P/ASX 200 index fell 0.2 percent to 3,420.1. It is still just 0.7 percent below its record high of 3,444.3 struck last Wednesday.

Property developer Lend Lease provided what little action there was. Its shares tanked 10 percent to A$12.72 after management warned on profits.

Other blue chips were mixed across the sectors. Mining giant BHP, soon to merge with the London-listed Billiton, rallied 1 percent to A$23.02.

New Zealand stocks also edged narrowly lower. The benchmark NZSE-40 Capital Index closed down 0.1 percent at 2,051.55. Telecom New Zealand dropped 2 cents to finish at NZ$5.64.

Korea, Taiwan finish lower

In Seoul, the benchmark Kospi closed down 0.9 percent at 618.47. Investors were worried by poor U.S. growth.

Daewoo Motor Sales, the sales arm of bankrupt Daewoo, rose the daily limit to 4,540 won. Its shares have gained recently as a General Motors bid on Daewoo nears.

Taiwan's benchmark Taiex lost 1.8 percent, ending the day at 5,079.72. Its gross domestic product numbers, released on Friday, showed the worst quarterly performance in 26 years.

Taiwan's economic planning agency said it saw no sign of an imminent recovery. The slow growth is expected to put pressure on the Taiwan dollar.

World microchip-foundry leader Taiwan Semiconductor Manufacturing Co. lost 1.6 percent to T$93.

Stocks were also trading lower in Singapore, where the Straits Times was down 0.7 percent to 1,676.77 in afternoon trade.

Indian stocks were a bright spot, however, with the 30-stock Bombay Stock Exchange index rising 1.6 percent to 3,719.87.

Reuters contributed to this report.

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