Tokyo leads markets down

TOKYO, Japan -- Tokyo stocks ended the morning session lower Tuesday as enthusiasm over restructuring steps by chipmaker Toshiba was overtaken by worries about the earnings outlook.

The benchmark Nikkei 225 average lost 181.00 points or 1.61 percent to 11,094.01. It touched 11,049.86 at one point, the lowest level since October 1984 on a closing basis.

The capital-weighted TOPIX index fell 13.50 points or 1.17 percent to 1,141.67.

Elsewhere in the region, markets generally were also slightly lower.

Australia, Korea drift down

After opening firmer as beverages group Foster's reported a 15 percent profit lift, Australian stocks drifted downwards, with the benchmark S&P/ASX200 down 3.8 points to 3365.8.

In Seoul, the Kospi lost 3.77 points to 574.97. Hyundai Motor was one of the few stocks to make gains, but Hynix Semiconductor continued to fall.

Taiwan's Taiex was down about 0.8 percent, losing 29.13 points to 4355.42.

In Hong Kong, the Hang Seng index was down about 0.5 percent shortly before midday, losing 53.85 points to 11,183.05.

Toshiba gives up some of Monday's gains

In Tokyo, Toshiba ended the morning session down 1.66 percent at 594 yen, giving up part of its gains made Monday before it announced a downward earnings revision and a major reduction of its workforce.

Toshiba said on Monday it would see a net loss of 115 billion yen for the year to next March, down from its original forecast of a 60 billion yen profit.

The company also said it would cut its group workforce by 10 percent, or close to 19,000 employees,by March 2004.

"The market initially cheered its announcements. But on second thought, it is not surprising for companies in tough business conditions like Toshiba to take on restructuring measures. If anything, it should have come earlier," said Keiji Numata, investment information manager at Toyo Securities.

Manufacturers of chip-making equipment lost ground after Toshiba lowered its semiconductor capital spending target for the year to next March by 46 percent to 75 billion yen ($626 million).

Advantest fell 5.15 percent to 7,000 yen while Tokyo Electron Ltd lost 1.36 percent to 6,540 yen.

Reuters contributed to this report.