Asian stocks in tight range as Japan falls

By staff and wire reports

HONG KONG, China -- Asian stocks traded in a tight range Wednesday, with Japan giving up gains spurred by central-bank induced ebullience.

Australia and New Zealand also ended down for the day.

But markets moved ahead with firm gains in Taiwan and Hong Kong, some of the region's poorest performers this year.

Stocks in South Korea were closed for the Liberation Day holiday but will reopen Thursday, while markets were also closed in India for Independence Day.

Nikkei back down as investors lock in BOJ gains

In Japan, the Nikkei gave up 1.4 percent to close at 11,755.40. That drop came as investors had a second look at the central Bank of Japan's moves to bolster the world's second-largest economy with extra monetary easing.

Investors sold on the news of Tuesday's 3.8 percent rally, the Nikkei's strongest showing since April.

The BOJ's move helped banking and brokerage stocks the most, and they dropped as investors locked in gains Wednesday.

Mizuho Holdings Inc., the world's largest bank by assets, gave up 1.0 percent to end at 499,000 yen. It rose 11 percent the day before, bumping against its ceiling for a one-day rise.

Nomura Securities Co., Japan's biggest brokerage, lost 1.8 percent to 2,175 yen after roaring up more than 10 percent the previous day.

Japan's broader Topix index dropped 0.4 percent to 1,194.33.

Earnings jitters still shaking market

Stock buying over BOJ Governor Masaru Hayami's moves gave way to sales on the Nikkei on Wednesday

Earnings are still causing jitters in Japan. Advantest, which makes chip-testing machines, dropped 5.05 percent to 8,090 yen.

It warned on profits last week. Nasdaq's 0.9 percent overnight drop didn't help, though that came on light trading.

Specialty chip maker Rohm Corp. also warned last week. But it rose 0.07 percent to 13,510 yen, rising off a 29-month low.

Toshiba Corp., Japan's largest chip maker and the world's second biggest, added 0.48 percent to 623 yen.

Big investment banks such as Goldman Sachs, Merrill Lynch and Salomon Smith Barney have all recently raised their take on the chip sector. Investors are hoping it is bottoming out.

But Toshiba is still 26 percent below a year-to-date high of 842 yen hit on May 1.

A parliamentary session to shape a supplementary budget for Japan will likely be pushed to late September.

Sydney down ahead of News Corp. earnings

In Sydney, the benchmark S&P/ASX 200 index finished down 0.1 percent at 3,364.3. The market's biggest stock, News Corp., was the main cause.

Rupert Murdoch's media giant fell 2 percent to A$17.47. News Corp. releases results during the U.S. day on Thursday that are expected to be down sharply.

It is still locked in battle with rival EchoStar for U.S. satellite television broadcaster DirecTV.

Sydney's slight loss would have been worse if not for a strong showing with mining stocks, which rallied 1.4 percent on overnight strength in base metal prices.

Australia's biggest mining listing, BHP Billiton, rose 2.7 percent to A$9.43.

Mining company WMC also did well after a slide on Tuesday from disappointing profits. It rallied 17 cents to A$7.98.

Telecom giant Telstra, Australia's second-biggest stock, is still suffering from management and earnings worries. It slipped five cents to A$5.05.

Qantas, Australia's largest airline, reports earnings on Thursday.

Telecom New Zealand shapes Wellington market

In Wellington, the benchmark NZSE-40 Capital index fell a similar 0.1 percent by the close. That's despite posting gains most of the day.

Telecom New Zealand, the market's biggest stock, on Tuesday reported profits that dropped 18 percent for the year.

On Wednesday, the stock again rose in the morning. But it ended down 1.7 percent at NZ$5.29.

Brewer Lion Montana is having to sell a 19 percent stake in wine maker Montana after a failed takeover attempt. Lion started the selling, but Montana shares rose 30 cents to NZ$4.65.

New Zealand's central bank left rates unchanged Wednesday but hinted at a future rise.

Hong Kong has strong run at close

In Hong Kong, the benchmark Hang Seng Index fought its way back above 12,000 in the last 20 minutes.

It closed up 1.3 percent at 12,141.63.

Asia's worst performing index this year, the Hang Seng had bounced back when it tested 12,000. But it has fallen below that on fears about property stocks and the U.S. economy, which drives Hong Kong's markets.

Its currency and interest rates are linked to the U.S. dollar.

Computer maker Legend Holdings, the largest computer company in mainland China, rose 5.7 percent to HK$4.18 on strong earnings.

China Mobile, the largest cell-phone company in China, reports earnings on Thursday. It rose 1.5 percent to HK$34.80, with a sharp run near the end of trade.

In Taiwan, the benchmark Taiex closed up 0.7 percent at 4,623.11.

The prospect of a lifting of trade restrictions with mainland China continues to cheer investors.

China Airlines rose 4.9 percent to T$17.20. Taiwan's biggest carrier has risen on hopes it may be allowed to start direct flights to mainland China.

Taiwanese officials have also sparked buying in bank stocks, after stepping in to avert a crisis with its small co-ops.

The banking index rose 1.2 percent and has gained 5.2 percent in two days.

Stocks in Singapore were trading down slightly, with the Straits Times index down 0.07 percent at 1,646.24 in late afternoon trading. Trading was choppy, with investors looking for short-term plays.

Reuters contributed to this report.