Nikkei down on tech, bank weakness

Japanese tech stocks were weaker Tuesday after concerns about the U.S. earnings outlook

TOKYO, Japan -- Tokyo stocks were lower by midday Tuesday. Chip shares such as Fujitsu and Tokyo Electron were hit by renewed concerns over the earnings outlook of their U.S. counterparts.

Bank stocks also gave up ground after downgrades by ratings agency Fitch-IBCA.

Wall Street analysts on Monday revised down sales and profit forecasts for Intel Corp, the world's largest chipmaker.

The benchmark Nikkei 225 average ended the morning down 50.93 points or 0.42 percent at 12,211.94. The capital-weighted TOPIX index fell 6.7 points or 0.55 percent to 1,211.94.

Taipei tumbles; Australia, Korea also down

VIDEO CNN's Lian Pek with the Asian stock market update Play video (QuickTime, Real or Windows Media)

Elsewhere in the region, markets in Australia, New Zealand, Korea and Taiwan were all weaker, with the Taiex in Taipei tumbling 83 points or 1.86 percent to 4387.39 as chipmakers TSMC and UMC gave ground.

Australia's benchmark S&P/ASX200 was down 9.4 points or 0.28 percent at 3397.2, while in Seoul the Kospi was down 5.73 points or 1 percent at 563.64. Tech leaders SK Telecom and Hynix Semiconductor were easier.

Hong Kong shares also were weaker near midday, with only banking heavyweight HSBC in the black after reporting a 4 percent net profit lift late Monday. The Hang Seng index was down about 1.4 percent to below 12,000.

The tech weakness in the U.S. weighed heavily on the Tokyo chip stocks.

"The bearish analyst comments poured cold water right over shares like Tokyo Electron, which has been on a recovery trend in recent trade," said Shoji Yoshigoe, chief investment strategy officer at Tsubasa Securities.

Fujitsu, Advantest give ground

Mizuho Holdings and other bank stocks gave ground in the wake of a ratings report from Fitch

Chipmaking giant Fujitsu fell 2.52 percent to 1,199 yen and Advantest Corp, Japan's top maker of semiconductor testing devices, lost 1.93 percent to 9,660 yen,

Electronic parts maker TDK Corp lost 1.14 percent to 6,070 yen amid caution ahead of its earnings announcement.

TDK results for the June quarter, set to be released after the close of Tuesday trade, are being watched closely for clues to performance in the sector because many other parts makers such as Murata Manufacturing do not unveil quarterly earnings.

Banking stocks lost ground across the board after credit-rating agency Fitch said on Monday it had cut the ratings of Japan's Big Four banks along with several other independent banks.

Industry leader Mizuho Holdings Inc fell 3.7 percent to 469,000 yen by midday, while the second-largest Sumitomo Mitsui Banking Corp was down 2.13 percent at 917 yen.

Reuters contributed to this report.