Asian stocks sink

By Geoff Hiscock

HONG KONG, China -- Asian stocks sank heavily Wednesday, with investors scrambling for cover from technology stocks.

Most markets lost at least 1.5 percent. Taiwan's chip-heavy market is approaching a six-year low, and South Korea stands at a 12-week slump.

But Australia posted a healthy gain, despite the headwind. It was the only major exchange to make it anywhere near the black.

In Tokyo, the benchmark Nikkei index thudded lower, losing 2.4 percent to end the day at 12,005.11. Investors were heartened to see it stay above the 12,000 mark.

But the Nikkei is down 17.4 percent from its 2001 high, set May 7.

The broader Topix index gave up 1.7 percent, to end at 1,227.57. It does not have as heavy a bent toward technology, so it was less damaged by Nasdaq's overnight loss of 3.2 percent.

Hitachi loses 6.9 percent

High-techs like Hitachi led the losses. The chip and electronics maker lost 6.9 percent to 1,061 yen.

It was the most-active stock and, unlike many techs, hasn't hit its yearly low point.

Others have, and didn't fare much better. Matsushita Communication Industrial Co., Japan's top cellphone maker, lost 6.8 percent to 4,660 yen.

That's its lowest close since October 1998. NTT DoCoMo said Tuesday it has to repair software in 100,000 cell phones that MCI made.

Consumer electronics giant Sony Corp. made it six down days out of seven, losing 3.2 percent to 7,010 yen.

Poor trade-surplus data and a reaffirmation of the government's gloomy take on the economy left Japan watchers looking for a supplementary budget later this year.

Sydney surprises with slight gain

In Sydney, the S&P/ASX 200 index defied all odds to end up 0.6 percent for the day, at 3,378.0.

Blue chips were big gainers. Australia's biggest telecom, Telstra, rose 2.1 to A$5.42. The stock, which has been ravaged since warning on earnings in June, was the most-active.

National Australia Bank, the country's biggest bank, rose 1.3 percent to A$32.62. The news that regulators were blocking Lloyds TSB's bid for British home lender Abbey National has opened the door to NAB.

News Corp., Australia's largest stock, rose 0.9 percent to A$17.62 on hopes it would soon wrap up its deal for Hughes' DirecTV.

New Zealand broke step with its trans-Tasman neighbor, with the NZSE-20 Capital index losing 0.5 percent to 2,038.93.

Telecom New Zealand, Wellington's biggest stock, lost 2.5 percent to close at NZ$5.15.

Seoul hits 12-week low

South Korea slumped to another 12-week low. The benchmark Kospi lost 0.9 percent to finish at 553.65, while the tech-heavy Kosdaq tumbled 3.7 percent to 68.07.

Samsung Electronics, the biggest stock in Korea, lost 0.6 percent to 169,000 won. It has lost 14.2 percent in five straight down days.

Fellow chipmaker Hynix Semiconductor dipped 4.2 percent to 2,030 won.

But some investors were looking for bargains. Hyundai Motor rose 3.5 percent to 26,700 won with good earnings news.

In Taipei, the benchmark Taiex lost 1.5 percent to 4,548.29. That's its lowest close since August 1995, when China was menacing Taiwan with war games.

Electronics stocks brought the downdraft Wednesday, and Taiwan's economy is moribund. Export figures released Tuesday showed a 16.6 percent decline.

The Taiwan dollar closed at its weakest level in 13 years against the U.S. dollar Wednesday, at T$35.050.

Some of Taiwan's biggest stocks bucked the trend. Microchip foundry No. 2 United Microelectronics Corp. rose 1.4 percent to T$42.30.

The world's biggest microchip foundry company, Taiwan Semiconductor Manufacturing Co., ended unchanged at T$61.50.

Singapore closed down , with the Straits Times index off 18.95 points or 1.2 percent at 1,661.39.