Markets down on tech earnings


The 2002 soccer World Cup in June, co-hosted by South Korea and Japan, is expected to lift markets

HONG KONG, China -- Asian markets were mostly down going into afternoon trade on Wednesday.

Investors remained on the sidelines as Samsung Electronics reported a 67 percent drop in profits and markets braced for more earnings results.

Tech issues took a beating after Intel Corp. reported earnings in the United States on Tuesday.

In Tokyo, stocks were broadly up by midday, but steep falls in tech issues drove the Nikkei lower.

The tech-sensitive Nikkei average ended the morning down 0.28 percent at 10,179.75, as local tech issues were battered by Intel Corp.'s decision to cut capital spending 25 percent.

The Topix, on the other hand, gained 0.49 percent to 985.14, lifted by higher bank shares.

The Topix measures all the stocks on the first section in Tokyo, meaning many professional investors view it as a better reflection of overall stock moves in Japan.

Banks gaining ground

Mizuho Holdings and other large banks gained ground, giving the Topix a boost.

Failed retailer Daiei and its three biggest creditor banks were set to agree on a 400 billion yen ($3 billion) assistance plan later this week, according to a report.

The BOJ opted on Wednesday to leave its already lax monetary policy alone as it wrapped up its two-day board meeting.

The move was expected but saw trading ease before it was confirmed.

In Korea, shares were slightly lower at noon, as losses in Samsung Electronics and other tech shares were offset by gains in airline stocks.

The benchmark Kospi dipped 0.37 percent to 716.00, while the tech-heavy Kosdaq slipped 0.08 percent at 73.13.

Samsung down on earnings

Chip titan Samsung Electronics lost 1.92 percent to 306,000 won. It's Seoul's largest listing.

The world memory chip No. 1 announced a 67 percent decline in fourth-quarter net profit year over year, and 7 percent decline in its sales for the quarter.

But chip-stock losses were counterbalanced by gains in airline stocks.

Korean Air soared 10 percent at 9,530 on upbeat earnings prospects, while Asiana Airlines surged by the market's 12 percent daily limit to 3,160 won.

They should get a boost from Korea and Japan hosting the soccer World Cup, which starts May 31.

Australia slightly higher

In Australia, the market was slightly higher in early afternoon trading, due to a strong showing from big banks and Wall Street's overnight rise.

The S&P/ASX 200 index was up 0.29 percent 3,416.1.

In New Zealand, the market was slightly higher in late trade. The NZSE-40 index was up 0.09 percent to 2,097.07.

Restaurant Brands leapt to a four year high of NZ$2.00 from NZ$1.97, after posting a better than expected annual profit of NZ$12.2 million.

Hong Kong down, Singapore flat

In Hong Kong, shares were lower in the morning as investors remained nervous as overseas and local firms enter the corporate results season.

The benchmark Hang Seng index was off 0.28 percent at 10,983.04.

Singapore shares were flat by mid-morning as banks and technology succumbed to cautious investors ahead of earnings.

The bellwether Straits Times Index was up 0.04 percent at 1,695.08

But Taiwan stocks were higher Wednesday morning as electronics shares tracked gains in their U.S. counterparts overnight.

The benchmark Taiex was up 0.30 percent at 5,609.33.

Wall Street broke its losing streak on Tuesday, the Dow Jones industrial average rising for the first time after six days of losses.

The Dow rose 0.3 percent, with Nasdaq closing up 0.5 percent.