Asian stocks lower but Japan turns around

Japan and Australia reversed sizeable morning losses to end Tuesday with gains

By staff and wire reports

HONG KONG, China -- Asian markets trended lower Tuesday. But the two biggest markets in the region changed direction late in the day to end with gains.

Markets in Japan picked up after a midday slump to end with a decent rise, despite weakness from bank stocks.

Australia rallied in late trading as investors bought up its biggest stocks.

Hong Kong lost more than a percentage point, though. Taiwan and South Korea both sold off, too, and stocks also ended down in New Zealand.

Buying beaten-down techs

In Tokyo, the benchmark Nikkei average put on 0.6 percent to end at 12,319.46, after trading down more than 1 percent in the morning.

Fresh money came into stocks that had sold off recently, like TDK.

The world's biggest maker of magnetic heads for hard disk drives jumped 4.23 percent to 6,400 yen after falling in early trade.

The broader Topix index lagged the Nikkei, rising 0.47 percent to 1,224.38.

Investors are looking to Friday, when Prime Minister Junichiro Koizumi will unwrap his preliminary budget for fiscal 2002, as well as privatization plans for Japan's 77 state-owned enterprises.

Ailing supermarket operator Daiei Inc. soared 6.3 percent to 235 yen after it raised 34.7 billion yen selling stock in convenience-store company Lawson Inc.

Fourth-ranked supermarket Mycal Corp., which plunged to a record low of 88 yen last week on fears of its weak financial health, rose 2.1 percent to 97 yen.

Toshiba, the world's biggest chip maker after Intel, rebounded to close up 2.5 percent at 645 yen, with investors taking a cue from a bounce in TDK.

After trading closed, TDK said group operating profit slumped 86.5 percent to 2.6 billion yen in the June quarter. But that was better than the 1.0 billion to 1.6 billion yen analysts expected.

Banks dropped sharply on a gloomier outlook over their bad loans. Mizuho Holdings Inc., the biggest bank in the world by assets, lost 1.4 percent to 480,000 yen.

Asahi Bank lost 2.59 percent to 226 yen.

Sydney's largest stocks gain

In Sydney, the benchmark S&P/ASX 200 index rose 0.01 percent to 3,407.0 after it also fell earlier in the day.

Buyers targeted the top 10 stocks. But Australia's largest stock, Rupert Murdoch's News Corp., ended two cents softer at A$18.20. Rival EchoStar has reentered the race for U.S. satellite broadcaster DirecTV, which News wants to buy.

Major banks clawed back from morning losses. National Australia Bank rose 13 cents to A$34.00. It's Australia's third-biggest stock.

Australia's second-biggest stock and largest telco, Telstra, rose 1.4 percent to A$5.22.

In New Zealand, the benchmark NZSE-40 index dropped 0.2 percent to 2,035.58.

In Hong Kong, the benchmark Hang Seng index dropped 1.17 percent to 12,007.19.

Bank HSBC Group rose 0.6 percent to HK$91.00. The largest stock trading in Hong Kong, HSBC reported better-than-expected earnings, with a 4 percent increase in net profit, after the close Monday.

China plays weighing Hong Kong

Investors are still skittish about China-oriented stocks. China's largest computer maker, Legend Holdings, fell 6.2 percent to HK$3.80.

Hong Kong's second largest stock, China Mobile, lost 2.7 percent to HK$32.70. Competitor China Unicom, the mainland's No. 2 cell phone company, dropped 2.8 percent to HK$12.35.

China's B shares, open to overseas investors, continued to fall. Investors sent the Shanghai B share index down 0.5 percent to 143.324, with Shenzhen B shares matching the slump.

Punters are worried by a crackdown by mainland officials on bank money used illegally to play stocks.

In South Korea, the benchmark Kospi closed down 0.3 percent at 567.50.

Seoul's largest stock, world memory chip No. 1 Samsung Electronics, lost 3.0 percent to 193,000 won.

Daewoo Construction rose 9.8 percent to 2,800 won, after it signed a $237 million contract for a gas plant in Nigeria.

In Taiwan, the benchmark Taiex fell 1.5 percent to 4,404.00.

Poor prospects for Intel, the world chip making No. 1, hurt Taipei's chip-driven market.

Taiwan Semiconductor Manufacturing Co., the world contract chip No. 1, fell 2.9 percent to T$66.00.

Rival United Microelectronics Corp. fell 5.8 percent to T$37.20.

Stocks were trading down in Singapore, with techs leading the downturn. The Straits Times index was trading down 0.4 percent in the late afternoon.

Reuters contributed to this report.