Asian stocks down hard on techs, tension


Stocks fell hard in Hong Kong, Taiwan and Korea, and dipped in Japan, as a tech selloff played into yen weakness

By staff and wire reports

HONG KONG, China -- Asian stocks dropped on Friday, with sharp dips in Hong Kong, Taiwan and South Korea.

They were all hurt by a 3.25 percent slide in Nasdaq on Thursday.

Japan also lost a little ground, as the yen broke the 129 barrier and crested to a new weak level against the dollar.

Among the few gainers in the Asia Pacific region were Australia and New Zealand. China's markets also gained ground, after a string of drops.

But Singaporean and Indian stocks were more typical, showing losses in afternoon trade.

Japan's Nikkei index ended down 0.95 percent at 10,335.45, on tech selling.

Techs, banks lower, yen weakens again

Toshiba, the world's second-largest chipmaker, fell 3.81 percent to close at 429 yen. During the day, it hit a 15-year low of 419 yen.

With less tech influence than the Nikkei, the broader Topix index ended 0.49 percent lower at 1,007.52.

Bank stocks were back down, with Japan's No. 2 bank Sumitomo Mitsui off 2.4 percent at 535 yen. Asahi Bank fell 7.2 percent to 77 yen.

There was little fallout in Asia from Argentina's descent into chaos. But the Japanese yen's recent weakness is hitting Asian currencies, particularly the Korean won and Taiwanese dollar.

The yen set a fresh three-year weak level on Friday against the U.S. dollar, at 129.55.

So far, the won and Taiwan dollar have weathered the yen's softness. The Taiwan dollar did break 35 to the U.S. dollar on Friday, though it settled back below that.

But traders are watching the yen. If it breaks through 130, those other currencies could move much higher.

The weak yen boosted stocks of some of Japan's main exporters.

Toyota Motor Co., Japan's largest carmaker, rose 2.3 percent to 3,120 yen.

Japan and China finally resolved a nine-month trade dispute on Friday, ending sanctions from both sides.

Hong Kong hit by HSBC

Chinese stocks closed up, arresting a two-slide on worries about new offerings. Shanghai's B shares rose 0.89 percent and Shenzhen B shares lifted 0.85 percent.

Volumes were light, though, heading toward the New Year's holidays. Markets will close from January 1 to 3.

The boost in Asia's top-performing market wasn't enough to lift stocks in neighboring Hong Kong, however, where the Hang Seng index plummeted 3.83 percent to close at 11,157.34.

Its largest listing, bank HSBC, fell fast on fears about its exposure to Argentinean debt. It closed down 4.28 percent at HK$89.50.

But China tech plays fared even worse, China Mobile down 5.46 percent at HK$26.85 and China Unicom down 4.05 percent to HK$8.35.

China's two cell phone providers now have 140 million users, new statistics show.

Sydneysiders surprised by rally

Australian stocks were the strongest Pacific performers on Friday. Sydney's main S&P/ASX 200 index ended up 0.92 percent at 3,374.5.

Brokers were a little surprised by the rally, which mainly chased "recovery" stocks.

Developer Lend Lease rose again, up 1.6 percent to A$12.70.

Commonwealth Bank rallied 2.4 percent to A$29.62, after revealing a restructuring the day before.

Insurer AMP rose 3.1 percent to A$18.55, investors cheering Thursday's announcement that it was scrapping plans to take an A$800 million stake in Chinese insurer CPIC.

In Wellington, New Zealand's main NZSE-40 index also ended in the black. It rose 0.42 percent to 2,037.05.

Trading was quiet again, and Telecom New Zealand and wood-products company Carter Holt Harvey - the two largest listings - both fell slightly.

Auckland International Airport arrested its slide, up 1 cent to NZ$3.60.

South Korea, Taiwan crunch lower

South Korea's Kospi index crunched 2.98 percent lower to 644.71. The two largest listings both fell, on the back of U.S. tech losses. Chipmaker Samsung Electronics was down 5.1 percent, and cell-phone carrier SK Telecom was off 4.4 percent.

In Taiwan, the Taiex dropped 3.76 percent to 5,109.24. The weak yen and the Nasdaq selloff combined for a double whammy.

Taiwan Semiconductor Manufacturing Co., the largest stock, dropped the daily 7 percent limit to T$80.

Singapore's Straits Times index was down 0.66 percent at 1,582.73 in the last hour of trade, tech shares leading the losses.

India's main market in Mumbai was down 1.15 percent in early afternoon trade, spooked by Nasdaq and heightened tensions with Pakistan.