Asian shares weak by midday

HONG KONG, China -- Asian shares were trading weak by midday Friday, with trading lackluster and little to shake up markets.

Tokyo shares ended the morning lower, dragged down by poor investor confidence and debt-ridden retailer Daiei.

The benchmark Nikkei was down 0.50 percent at 10,485.25 at noon, while the Topix lost 0.7 percent to 1,003.14.

It briefly dropped below 1,000 for the first time since December 27.

Daiei remained under the spotlight after ratings agency Standard & Poor's cut its corporate creditworthiness on Thursday, tossing cold water on its recent bull runs.

Daiei lost 17.27 percent to 91 yen. It had gained 47 percent in the past two days, on a report of a bailout.

Korea cautious but up

Analysts attributed the Tokyo market drop to weakening confidence over the country's bearish fundamentals, particularly on the prolonged bad loan woes of Japan's banks.

The Nikkei index has lost a total of 4.18 percent since Monday's close.

In Seoul, shares shaved early gains and were little changed near noon on caution after mixed U.S. stocks.

The benchmark Kospi was up 0.06 percent to 728.65, but the over-the-counter Kosdaq was down 0.97 percent to 75.59.

Analysts said players remained on the sidelines due to concerns that fluctuating overseas markets may increase volatility in the local market.

South Korea posted some good news Friday, with a lower jobless rate. It is faring better than most economies in Asia in the current downturn.

In recession-ridden Taiwan, stocks gave up early gains to trade slightly lower as semiconductor shares tracked the losses of their U.S. counterparts.

The Taiex slipped 0.85 percent at 5,821.46 by midday.

Strong start

In other markets, Hong Kong stocks edged higher in early trade, snapping a three-day losing streak, after selling on Wall Street eased.

The benchmark Hang Seng index was up 0.69 percent at 11,333.46, after tumbling 5.4 percent since Monday's close.

The market was also supported by gains made by China's two mobile phone operators, China Mobile and China Unicom.

China Mobile was up 1.65 percent while China Unicom was 1.24 percent higher.

In Singapore, Singapore shares rose slightly at the start, building on momentum from Thursday's gains.

The bellwether Straits Times Index was up 0.19 percent at 1,709.87.

In Australia, the market managed to keep a toe in positive territory in afternoon trading despite wary investors over sluggish overseas markets.

The benchmark S&P/ASX 200 Index was up 0.06 percent at 3,353.8.

In New Zealand, shares opened flat as weakness in Telecom NZ offset small gains in other leading stocks.

The benchmark NZSE- index was up 0.3 percent at 2,113.51.