Asia stocks lag on BOJ second look

Japanese investors are on Wednesday taking a skeptical second look at the central bank's steps

By staff and wire reports

HONG KONG, China - Asian markets are weaker at midday on Wednesday.

Japanese investors were taking a skeptical second look at the central Bank of Japan's shock steps on Tuesday to bolster its economy.

In Tokyo, the Nikkei ended the morning session down 1.5 percent at 11,739.96. Some investors were locking in yesterday's BOJ-driven gains of 3.8 percent.

Stocks were also trading down in Hong Kong. New Zealand was also losing ground, after the central bank left rates steady.

But prices were up narrowly in Australia.

Taiwan's chip-driven markets were enjoying good gains, driven by recent brokerage upgrades of the industry. Investors hope it has bottomed out.

South Korea's markets are closed Wednesday for the Liberation Day holiday. Trading kicks back into action on Thursday.

Bank stocks back down in Japan

In Japan, the broader Topix index was trading down 0.9 percent at 1,188.69.

The BOJ moved on Tuesday to ease an already easy monetary policy. It said it would buy more government bonds and raise bank reserves.

The main gainers from those steps were banks. They were giving back some of their gains on Wednesday.

BOJ Governor Masaru Hayami pushed two steps to help the world's second largest economy

Mizuho Holdings, the world's biggest bank by assets, bumped up 11.0 percent, reaching its daily limit, on Tuesday. It was off 2.0 percent at 494,000 yen on Wednesday morning.

Japan's largest brokerage, Nomura Securities Co., was down 1.6 percent to 2,180 yen.

Furukawa Electric said it may lay off up to 500 workers picked up after the company bought the fiber-optic unit of U.S.-based Lucent Technologies.

The Japanese company is looking to cut costs, faced with slumping demand in the United States and Asia. Its stock was down 3.9 percent by midday.

Taiwan up on China easing

Hong Kong's Hang Seng index was trading down 0.2 percent at 11,963.03 shortly before midday local time.

In Taiwan, the benchmark Taiex jumped 1.6 percent to 4,660.57 shortly before midday.

Stocks are still enjoying the prospect of an easing of trade restrictions with mainland China. Government steps to help banks were lifting their stocks.

In Australia, the benchmark S&P/ASX 200 was up 0.1 percent at 3,375.2 in early afternoon.

Mining stocks made the early running. BHP Billiton, Australia's largest listed resources company, was snapping a six-day losing streak on renewed interest in the sector.

In New Zealand, the benchmark NZSE-40 capital index was down 0.1 percent at 2,047.58 in early afternoon.

Telecom New Zealand, the market's largest stock, was still making waves after reporting annual earnings that were down 18 percent on Tuesday.

Telecom NZ falls

Like Tuesday, it rose in early trade only to fall back, and was steady at NZ$5.20.

Winemaker Montana Group shares were rallying as Lion Nathan was starting a forced sell off of 19 percent of the company.

The dollar continues its slide against most Asian currencies. Traders are selling the U.S. currency ahead of retail sales numbers and a U.S. Federal Reserve report on industrial production later this week.

One of the biggest movers in Asia is the peso. The Philippine currency broke through 51 to the dollar for the first time since June.

The yen had made back all of Tuesday's weakening caused by the BOJ's surprise steps. It was trading at 121.73 to the dollar during the day Wednesday.

The Singapore dollar is also strengthening.

Reuters contributed to this report.