Techs force Asia to close lower again

By Staff and wire reports

HONG KONG, China - Asian markets crumbled under pressure from tech stocks Thursday.

Shares in Hong Kong and South Korea dropped sharply. Japan fell for a second day after more telecom and tech downgrades.

The benchmark Nikkei ended down 1.7 percent at 13,262.14, The broader Topix fell 1.4 percent to 1,310.81.

Investors were also shaken by the Nasdaq's 4.2 percent decline.

Telecoms downgraded

Deutsche Securities cut its ratings on telephone companies Japan Telecom and Nippon Telegraph and Telephone Corp. That followed its downgrades of 13 big-name Japanese techs on Wednesday.

No. 3 carrier Japan Telecom fell 5.9 percent to 2.39 million yen, while NTT lost 1.6 percent to 736,000 yen.

Banking woes have also mired the market, as earnings showed Japan's problem loan problem is growing.

Daiwa Bank Ltd. has been hard hit on speculation it is one of the worst off. It fell 1.4 percent to 138 yen. It has lost 13 percent in the last five days.

But defensive stocks such as drug makers and electric utilities gained ground as investors sought shelter.

In Hong Kong, the Hang Seng index dropped 1.8 percent to close at 13,174.41. That extended six days of losses.

Tech disappointment saw China Mobile, the largest mobile-phone company in China, drop 2.8 percent to HK$37.80.

But investors bid up most China-oriented stocks ahead of an easing of restrictions on China's B share market on Friday.

Australia dips again

Australian stocks lost ground to come further off their record. The benchmark S&P/ASX 200 index lost 0.6 percent to close at 3,379.1.

Mayne Nickless lost a little ground after it bid A$2 billion for drug maker F.H. Faulding & Co. But Faulding stock leaped 19.7 percent to A$12.25.

The collapse of junior telco One.Tel was still troubling the market, particularly the stock of shareholders News Corp and Publishing & Broadcasting.

Shares in New Zealand also closed down, the NZSE-40 cap index losing 0.3 percent to 2,028.34.

Seoul shuts down 2 percent

In Seoul, the benchmark Kospi index lost 2.3 percent to end the day at 612.16. Chip stocks dragged the market down.

Samsung Electronics shed 5.2 percent to 212,000 won. The memory-chip maker hit a two-week low after U.S. chip makers cast doubt on its second quarter performance.

Electronics parts maker Samung Electro-Mechanics lost 3.6 percent to close at 51,100 won. The company announced it is restructuring.

Taiwanese stocks dipped slightly. The benchmark Taiex index close down 0.2 percent at 5,048.86.

That made for the fourth down day out of five. The electronics subindex fell 0.7 percent but escaped much of Nasdaq's descent. Bank stocks gained after Taiwan let its banks open branches in China.

In Indonesia, the Jakarta composite index was down 0.8 percent at 405.70 in afternoon trade. It has traded up recently on optimism that impeachment of President Abdurrahman Wahid could lead to a change in government.

Reuters contributed to this report.

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