Nikkei ends down, close to 17-year low

Tokyo's Nikkei 225 index slipped Tuesday, closing near a 17-year low. At one point it was below 11,100.

HONG KONG, China -- Tokyo shares ended close to a 17-year low Tuesday as Asian markets slipped on continuing nervousness about corporate earnings.

Australia and Hong Kong bucked the downward trend to finish slightly higher.

Australia's benchmark S&P/ASX 200 index finished up 2.8 points at 3,372.1, but declining stocks outpaced advances.

In Hong Kong, the Hang Seng Index closed up 0.59 percent or 65.81 points at 11,300.53. China Mobile put on 5 percent.

But in Tokyo, the benchmark Nikkei 225 share average fell 0.76 percent or 85.61 points to close at 11,189.40.

Market hovering just above 11,000

That put it just 62 points above a 17-year closing low of 11,126.92 reached last Thursday. At one point during the day, the index touched 11,049.86.

The capital-weighted TOPIX index fell 4.92 points or 0.43 percent to 1,150.25.

"The Nikkei is hovering just above 11,000, and we haven't seen a selling climax yet," said Tetsuya Ishijima, chief strategist at Okasan Securities.

Toshiba, Japan's biggest chip maker, ended up 0.66 percent at 608 yen, a minor gain to add to a 5.59 percent rally on Monday when it announced downward earnings revisions and a major reduction of its workforce as part of a restructuring plan.

Technology stocks lose ground

Several 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, led by a 1.76 percent fall to 7,250 yen in Advantest Corp.

Japan's gross domestic product figures for the June quarter, due next week, are widely expected to show the first contraction in three quarters and are expected to pave the way for an extra budget for this fiscal year.

The world's biggest bank by assets, Mizuho Holdings, and other major bank shares were higher on buybacks, mainly by foreign investors who need to return borrowed stock to original shareholders ahead of the half-year book closings at the end of September.

Elsewhere in the region, Taiwan stocks closed lower on worries over corporate profits. The benchmark TAIEX stock index ended down 16.17 points or 0.37 percent at 4,368.38, reversing Monday's 1.72 percent rise.

Kepco takes Kospi lower

South Korean shares closed a shade lower in subdued trade, as state utility Korea Electric Power Corp (Kepco) lost ground on a dispute over privatization of its cable network unit.

Kepco dropped 2.9 percent to 23,400 won, with the Kospi ending down 0.39 percent at 576.51, above the session's low of 573.10.

Singapore's Straits Times Index was off 0.42 percent at 1,638.09 points in late afternoon trading.

Reuters contributed to this report.