Techs weigh Asian stocks at close

By Staff and wire reports

HONG KONG, China -- Asian stocks closed down across the board Wednesday. Technology stocks prompted big drops in Japan and Hong Kong.

In Sydney, the failure of One.Tel sent Australian stocks lower. Taiwan's market was hit by currency woes and Nasdaq's 3.4 percent drop on Tuesday.

But stocks in the Philippines broke a six-day losing streak.

Nikkei at six-week low

In Tokyo, the benchmark Nikkei stock average sank to a six-week low. It closed down 2.0 percent on broad-based selling, at 13,493.35.

That has wiped out any gains from the "Koizumi effect" after Junichiro Koizumi rose to power a month ago.

The broader Topix fell 1.9 percent to 1,329, its lowest close since April 24.

Techs were punished by Nasdaq's slump and a ratings downgrade on Japanese techs by Deutsche Securities.

No. 1 chip producer Toshiba fell 7.4 percent to 700 yen after the bank downgraded its stock to "underperform" from "market perform."

Electronics giant NEC Corp. dropped 8.0 percent to 2,025 yen. Semiconductor testing device maker Advantest Corp tumbled 7.0 percent to 12,970 yen. Both saw similar downgrades.

Banks resume losses

Banks also resumed their losing ways. Japan's four biggest bank groups were all lower.

Mizuho Holdings Inc., the world's largest bank by assets, lost 4.1 percent to 605,000 yen. UFJ Holdings Inc. slid 7.1 percent to 670,000 yen and has lost 16 percent since Friday.

Traders are still worried about the increase in bad bank loans that the banks showed when they released earnings last week.

Oil refiner Cosmo Oil Co Ltd. was a bright spot. It gained 5.9 percent to 342 yen. Cosmo forecast net profits will jump 67 percent to 14.5 billion yen for the next fiscal year, through March.

Australia down again

In Hong Kong, the Hang Seng index ended the day down a substantial 1.5 percent at 13,420.13.

That's its lowest point since May 16. Techs were again the culprit.

China Mobile, China's largest mobile-phone company and the Hang Seng's second-largest component, closed down 2.8 percent at HK$38.90.

Legend Holdings, China's largest computer maker, lost 3.5 percent to HK$5.45.

Australian shares lost more ground from their recent record high.

The benchmark S&P/ASX 200 index finished 0.3 percent lower at 3,401.5. It's off 1.2 percent below its record high of 3,444.3, from May 23.

The market's largest stock, News Corp. fell 1.2 percent to A$17.71, in line with Wall Street's drop.

Junior telco One.Tel lurched into insolvency Wednesday. One.Tel backers James Packer and Lachlan Murdoch, scions of two of Australia's biggest businessmen, said they were angry about the collapse, which raised questions about their judgment.

The market's two strongest performing sectors this year, mining and banks, edged down. Mining giant BHP fell 8 cents to A$22.67. Australia's largest bank National Australia fell 18 cents to A$32.15.

New Zealand shares also ended off, with the NZSE-40 Capital Index down 1.0 percent at 2,034.

GM bid fails to boost Korea

In South Korea, the benchmark Kospi lost 0.6 percent to close at 628.42. That's despite General Motor's bid to bail out bankrupt Daewoo Motors.

It submitted a proposal Wednesday, but did not reveal its details.

Auto stocks rose, with parts-maker Halla Climate Control gaining 1.43 percent to 39,900 won. Daewoo's sales arm, Daewoo Motor Sales, rose 6.6 percent to 4,380 won.

Investors were cautious before they heard details of the bid. Memory-chip giant Samsung Electronics lost 3.7 percent to 223,500 won.

In Taipei, Taiwan's benchmark Taiex closed down 0.8 percent at 5,057.07.

Taiwan Semiconductor Manufacturing, the world's largest microchip foundry, dropped 3 percent to T$90.00. Chip maker Mosel Vitelic lost 1.1 percent to T$18.90.

Taiwan suffered its worst quarter in 26 years. There are still worries about Taiwan's dollar, which hit a 32-month low vs. the U.S. dollar on Monday.

In Manila, the Philippines composite index ended six days of losses to close up 0.8 percent at 1,396.50. Stocks there have been hard-hit by the kidnapping of 20 people by Muslim extremists.

In Bangkok, Thai stocks were down Wednesday. The composite SET index was down 0.5 percent at 307.83 mid-afternoon.

Thailand's prime minister, Thaksin Shinawatra, fired Thailand's central banker on Tuesday, prompting fears about the banking sector and a possible interest-rate raise.

Reuters contributed to this report.

Note: Pages will open in a new browser window

External sites are not endorsed by CNN Interactive.