Asian stocks crunch for second day


Japanese stocks are expected to get a boost from the soccer World Cup, which starts on May 31 and runs through June

HONG KONG, China -- Asian stocks crunched lower again on Wednesday, for a second day of declines for most Pacific markets.

In Tokyo, the Nikkei fell 0.3 percent to 10,663.98, after falling 2.3 percent on Tuesday.

The broader Topix index finished 0.66 percent in the red, at 1,025.01.

The yen was the center of attention again, as the Japanese currency set a new three-year weak mark against the U.S. dollar.

It touched 133.37 against the greenback in morning trade, after what traders took to be tacit approval from U.S. authorities of its recent run.

The yen then settled to 132.48 in European trade, after a government spokesman repeated Japan's standard line that its recent decline has been too sudden.

South Korean stocks, the stars of 2002 so far, jumped 2.3 percent. The Kospi ended at 751.61.

The main driver was renewed optimism over a deal to sell Hynix Semiconductor's DRAM memory chip operations to Micron Technology.

Micron CEO Steve Appleton is in Seoul, leading the talks. A local news agency reported Micron has offered a deal.

Hynix boosts Korea, Taiwan

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That saw Hynix shares shoot up the daily 15 percent limit, closing at a six-month high of 3,225 won.

Hyundai Motor, Korea's largest carmaker, rose 2 percent to a two-year high of 30,500 won, after raising sales forecasts for 2002 by 6.4 percent.

Taiwan's chip-driven market also closed higher, the Taiex up 0.95 percent to 5,865.54. The developments in Korea with Hynix were the main motive.

Taiwan Semiconductor Manufacturing Co. gained 1.1 percent to T$91.50, then posted positive sales for December after the bell.

New Zealand managed a slight gain. But Australian stocks ended in the red.

Hong Kong's Hang Seng index collapsed 2.3 percent to end at 11,440.72. Its two mobile-phone plays in China fell on Beijing's decision to issue two new licenses.

Across the border in Mainland China, the B shares were also down.

Singapore stocks also fell, the Straits Times index dropping 1.05 percent to 1,686.20 at the close. Bank stocks were off.

But traders said the Singapore market still has a decent level of confidence to move higher.

Tokyo banks dip on Daiei rescue plan


Philippines President Gloria Macapagal Arroyo (r) welcomes Japanese PM Junichiro Koizumi on Wednesday's visit

Tokyo shares dropped on bank stocks, seeing the Topix move more dramatically than the Nikkei, an unusual event.

The Topix measures all the stocks on the first section. But it was dealt a heavy blow by a drop in Sumitomo Mitsui Corp., down 2.65 percent to 550 yen.

Mizuho Holdings, the world's biggest bank by assets, fell 3.1 percent to 281,000 yen. Regional banks fared even worse.

The market got little boost from a reported bailout for troubled supermarket chain Daiei Inc. Both Sumitomo and Mizuho's Fuji Bank subsidiary are lenders.

The banks will reportedly forgive Daiei as much as 400 billion yen ($3.0 billion) in debts.

That did however drive Daiei stock higher, up its daily limit of 30 yen to 105 yen - a 40 percent jump. Daiei is laboring under 2.3 trillion yen in debt in all.

Sydney sums up media shuffle

Australia's S&P/ASX 200 index dropped 0.3 percent to 3,412.5. Media stocks were active after hints the government will force changes to Australia's restrictive media ownership laws.

Rupert Murdoch's News Corp., the biggest listing Down Under, fell 0.5 percent to A$15.40

Kerry Packer's Publishing and Broadcasting rose 1.4 percent to A$9.92.

Banks were a big drag on the overall index, Westpac leading the declines, down 1.5 percent to A$14.97.

In New Zealand, the NZSE-40 capital index rose 0.1 percent to 2,084.68. It would have been a drop without a gain of 1.5 percent for Telecom New Zealand.

It accounts for 22 percent of the index, and closed at NZ$5.25.

China mobile-phone plays down

In Hong Kong, China Mobile slumped 7.8 percent to HK$25.45. China Unicom dropped $4.05 to HK$8.30.

Beijing on Tuesday said it would grant two new mobile-phone licenses, dealing China Mobile and China Unicom a blow. At the moment, they have the world's biggest mobile-phone market to themselves.

Bank HSBC dropped 1.35 percent to HK$91.50, still reeling from Argentina's collapse. HSBC still states that the country accounted for only 1 percent of assets.

HSBC and China Mobile are the two largest listings in Hong Kong.

In China, the Shanghai B share market fell 3.2 percent and Shenzhen's B shares gave up 4.07 percent, a second day of losses after Beijing barred brokerages from trading B shares on their own account.

Indian stocks were down 0.67 percent, the Bombay Stock exchange main index standing at 3,414.75, in early afternoon trade.

Cement stocks and drug stocks were getting some attention as investors locked in profits on tech stocks.