Asian shares tumble to lower close

By staff and wire reports

HONG KONG, China -- Asian markets headed south Monday. Japan chewed on the prospect it is likely in recession and Korean investors sold off tech stocks.

Of the main Asian markets, only Taiwan rose on the day.

Tokyo's benchmark Nikkei average finished 1.5 percent down at 13,226.48.

Its government said Monday that its economy shrank 0.2 percent in the quarter through March, missing growth forecasts for the fiscal year.

The broader Topix index shed 0.6 percent to 1,309.75. Though it would take another down quarter for Japan to meet the Western definition of a recession, other indicators show it is already there.

VIDEO CNN's Michelle Han with the Asian market closings Play video (QuickTime, Real or Windows Media)

"This GDP data is slowly delivering a body blow to the market," said Hiroshi Sato, equities general manager at Cosmo Securities.

Auto shares up on weaker yen

A weak sales forecast from Juniper Networks also weighed on Japan's techs.

Advantest, Japan's No. 1 maker of chip-testing devices, tumbled 7.4 percent to 11,970 yen. Tokyo Electron, a top maker of chip-making equipment, lost 5.9 percent to 7,890 yen.

Tokyo's downside was supported by gains in auto shares. Japan's poor growth pushed down the yen, which helps exporters.

Honda Motor Co. gained 1.9 percent to 5,260 yen. Mazda Motor Corp. put on 3.8 percent to 300 yen.

The yen was trading at 121.44/54 to the dollar on Monday afternoon.

Another bright spot was energy-related shares. Oil refiner Showa Shell Sekiyu KK, half owned by the European oil group, rose 1.6 percent to 876 yen.

China stocks down sharply

Hong Kong's Hang Seng index shut down 1.0 percent at 13,675.49.

Johnson Electric had the biggest percentage drop, shedding 7.0 percent to HK$12.70. The motor maker announced lower-than-expected earnings on Friday.

The H-share index, of Chinese-based companies listed in Hong Kong, dipped 0.4 percent to 570.75, reversing morning gains after markets in Shanghai and Shenzhen closed lower.

The red chip index, of Hong Kong-based companies that do most of their business in China, rose 0.76 percent to 1,367.77.

China's hard-currency B share markets took a beating. The Shanghai B share index collapsed 8.3 percent, to 205.124. The Shenzhen B share index slumped 6.4 percent to 351.36.

Investors said institutional stop-loss selling intensified the drop as the day wore on.

South Korea off 2.2 percent

Markets were closed in Australia for a national holiday. In New Zealand, the NZSE-40 capital index fell 0.6 percent to 2,061.

In South Korea, the benchmark Kospi slumped 2.2 percent to 608.23. Samsung Electronics, the biggest stock on the exchange, dropped 4.3 percent to 214,000 won.

Chip maker Hynix Semiconductor closed down 2 percent at 4,545 won, hurt by worries about chips.

But the notion Hynix will soon get an injection of overseas investment helped its largest creditor, Korea Exchange Bank. KEB stock rose 3.9 percent to 3,295 won.

In Taiwan, the Taiex index rose 0.9 percent to 5,271.30. State-linked funds stepped in at the end of trading to buy electronics shares.

Taiwan Semiconductor Manufacturing, the world's biggest contract chipmaker and the biggest stock on the exchange, rose 2.1 percent to T$99.00.

Banks such as Chinatrust Commercial Bank, which rose 3.3 percent to T$25.00, were up as financial reforms looked imminent.

Property and technology stocks were dragging down Singapore markets. The Straits Times index was off 1.5 percent at 1,707.46 in mid-afternoon trading.

Reuters contributed to this report.