Asian markets split, Hong Kong down

The Nikkei was coming back from a slight loss in morning trade, but Hong Kong was down sharply

By staff and wire reports

HONG KONG, China -- Asian markets were split again on Friday. Japan was showing narrow gains in afternoon trade, after ending the morning slightly down.

Australia and New Zealand were moving ahead strongly, with mining stocks gaining.

But South Korea and Singapore were trading down.

Taiwan and Hong Kong was showing the largest losses, both giving up more than 2 percent in morning trade.

The U.S. overnight market drop and worries about China cell phone plays hit Hong Kong.

Nikkei coming back in afternoon

Overnight in the United States, the Dow Jones industrial average lost 0.5 percent to 10,229.15. Nasdaq dropped 0.9 percent to 1,842.97.

Technology stocks were again weaker in Tokyo. The Nikkei ended the morning session slightly below its 17-year closing low from Thursday.

It was off 0.15 percent at 11,109.85 after morning trade. The broader Topix index fell further, down 0.3 percent at 1,144.07.

But the Nikkei was changing course as it headed into afternoon trade. It was up 0.1 percent at 11,140.89 as the afternoon session got going.

Tech standard bearer Sony Corp rose early, as Nasdaq futures hinted at a good start for U.S. techs later Friday.

But Sony ended the morning down 0.9 percent at 5,500 yen. Investors have sold off the electronics maker's stock recently on worries about the economy.

"The U.S. and Japanese economies are in a discouraging state, progress on structural reforms is unclear, and banks will continue to sell actively through book closings in September," said Yuji Nakamura, strategist at Shinko Investment Trust Management.

Bayer product pull hits Takeda

Investors could only buy the stock of Fast Retailing Co., after it fell its daily limit of 2,000 yen to 15,260 yen, down 11.6 percent.

It plans to focus on larger stores and also expand into the United Kingdom.

Japan's biggest drug maker, Takeda Chemical Industries Co., dropped 5.32 percent to 5,160 yen.

Germany chemical company Bayer AG is withdrawing its Baycol anti-cholesterol drug from Japan, which Takeda said it would stop selling.

Japan's largest stock, NTT DoCoMo Inc., was up 2.01 percent to 1.52 million yen.

Japan's dominant cell-phone carrier had fallen for seven straight days, wiping out $25 billion in market value.

Electronics-parts maker Kyocera Corp. rose 1.78 percent to 7,430 yen. It halved its profit forecast after the close on Thursday.

Mizuho Holdings, the world's largest bank by assets, perked up 2.52 percent to 489,000 yen. But banks in general were trading down.

Mining stocks up in Sydney

In Australia, the benchmark S&P/ASX 200 index was up 0.8 percent at 3,346.3 in afternoon trade.

Investors going long were getting the most joy out of mining stocks. Anglo-Aussie miner Rio Tinto was leading the way, up 2.5 percent to A$33.12.

Anglo-Aussie listing BHP Billiton, the largest mining stock in Sydney, was trading up 1.9 percent at A$9.31.

Both were getting a kick out of higher base metal prices.

National Australia Bank led the way for financials, up 2.5 percent to A$33.12.

Commonwealth Bank of Australia, which reported disappointing earnings this week, rallied 0.6 percent to A$30.24.

Media giant News Corp., Sydney's largest listing, was down 0.6 percent at A$16.47. U.S. satellite company DirecTV, which News wants to buy, said Thursday it would lay off staff.

The second biggest Aussie stock, telecom Telstra, was up 1.6 percent at A$4.90.

Stocks in New Zealand were showing the strongest Asia-Pacific gains, with the benchmark NZSE-40 capital index rose 1.7 percent to 2,072.39 in the afternoon.

The largest stock, Telecom New Zealand, was up slightly. Stocks in general were getting a boost from a strengthening New Zealand dollar.

Cell-phone companies down in Hong Kong

In Hong Kong, the Hang Seng index was down 2.3 percent at 11,083.57 after morning trade.

China's leading cell-phone companies plunged on renewed concerns about slowing growth and fierce competition.

China Mobile was down 8.1 percent at HK$23.85. Rival China Unicom was down 7.25 percent to HK$9.60.

Investors have been fretting that they are adding less profitable customers in China, though growth is still good, after China Mobile reported earnings last week.

Asia's richest man was a little richer. Tycoon Li Ka-shing's flagship companies Hutchison Whampoa and Cheung Kong were rallying despite posting a sharp profit drop after the end of trade on Thursday.

Ports-to-telecoms conglomerate Hutchison was up 0.4 percent at HK$67.0 shortly before noon, after jumping at the open.

It reported a profit decline of 77 percent, to $922 million. But a large drop had been expected.

Property giant Cheung Kong was up 1.1 percent at HK$69.50. It owns 49.9 percent of Hutchison, and saw its profits drop 76 percent as a result.

In South Korea, the benchmark Kospi was down 0.6 percent at 566.81 in the afternoon. It had inched down in morning trade.

Hyundai Securities, Korea's third-largest brokerage by assets, was down 10 percent to 8,090 won in heavy trading.

A group led by insurance giant American International Group said Thursday it would take management control and buy a 29 percent stake in the company.

The AIG consortium is also taking the reins at two other Hyundai financial companies.

But investors, who had bid the brokerage's stock up, have sold on the news. The consortium says it is still haggling over the price, too, because Korean law prevents it from buying Hyundai Securities stock at a discount.

Troubled chipmaker Hynix Semiconductor was down 9 percent at 1,265 won. Its creditors are meeting opposition to their plan to arrange a debt-equity swap to bail it out.

In Taiwan, the benchmark Taiex was down 3.3 percent at 4,313.96.

Weak corporate results were driving investors to sell.

The electronics subindex was down a similar amount, with banks falling but at a slower pace.

In Singapore, the benchmark Straits Times index was off 0.6 percent at 1,626.07.