Asian markets lower by midday


Tokyo shares continue to fall into the red as credit jitters hound the market

HONG KONG, China -- Asian markets extended their losses by midday on Tuesday, as losses in Japanese techs followed U.S. declines overnight.

Chip-stock declines were hammering South Korea's market, where the Kospi is down more than 3 percent.

In Tokyo, there were increased credit jitters due to the failure of yet another company.

Stocks were also dragged down by the fall of techs like Sony Corp. Consumer electronics giant Sony lost 5.63 percent to 6,040 yen.

That helped the tech-sensitive Nikkei average down 1.73 percent at 10,260.68 at the noon break.

Though Tokyo was trimming its losses as the afternoon got going, Tuesday promises to be its fifth straight trading day of declines.

The broader Topix was down 1.70 percent at 982.95 at the lunch break. Tokyo's markets were closed Monday for a holiday.

Homebuilder failure hits market

On Sunday, homebuilder Shokusan Jutaku Sogo Co. filed for protection from creditors with debts of 15.5 billion yen ($102.4 million), marking the first listed company to go under this year.

Analysts said several other debt-ridden firms may follow suit in the coming months, as banks crack down on problem borrowers.

In Korea, shares tumbled in morning trade after a fall in the U.S. Nasdaq prompted selling of chipmaker stocks.

The main Kospi index was down 3.19 percent at 720.27 in early afternoon, while the over-the-counter Kosdaq was off 1.98 percent at 73.62.

Samsung Electronics dropped six percent to 310,500 won, after hitting a 17-month peak on Monday.

The U.S. markets dropped Monday on fears of weakening corporate earnings.

The Dow Jones industrial average fell 0.96 percent, while the Nasdaq closed down 1.57 percent amid worried about dwindling corporate profits.

Cautious

In Taiwan, stocks were adrift as investors waited on the sidelines for clearer signs of strong economic fundamentals.

The Taiex was down 0.91 percent at 5,560.73 in early afternoon. But like Japan, it was narrowing its decline as the day went on.

Analysts said investors were put off by the poor performance of international markets, and the dismal situation of the local economy.

In Hong Kong, the benchmark shares index fell more than 2 percent by the lunch break, tracking the fall of U.S. markets.

The benchmark Hang Seng Index dropped 2.03 percent to 10,982.31. Banks were leading the declines.

Blue chips fall

In other markets, the Australian market weakened by early afternoon after failing to rouse positive sentiment toward the local market.

The benchmark S&P/ASX200 index was down 0.08 percent at 3,404.7, and closing on break-even.

In the mining sector, the drawn-out battle for Australia's largest gold producer, Normandy Mining, gained some clarity after one of the two bidders, South African AngloGold, affirmed that it would not increase its offer.

Normandy shares were unchanged at A$1.950.

In New Zealand, shares closed up. The benchmark NZSE-40 index opened lower but managed to crawl 0.19 percent higher to 2,095.27.

Shares opened lower in Singapore after some banks blue chips reversed recent gains in reaction to Wall Street's fall.

The benchmark Straits Times Index was down 1.19 percent at 1,710.85 as afternoon trading kicked in.