Tokyo steadies after noon losses


Tokyo shares lost early gains due to heavy losses on blue-chip issues but are rallying into afternoon trade

HONG KONG, China -- Asian markets moved into afternoon trade lower, weighed down by blue chip losses on gloomy earnings forecasts and results.

But Tokyo steadied, and Taiwan was clinging to gains.

Stocks gave up early gains in Tokyo to post a loss at midday, weighed down by drops on several big exporters, including copier and camera maker Canon Inc.

Canon lost 4.08 percent to 4,230 yen, helping send the tech-sensitive Nikkei average down 0.97 percent to 10.078.60.

The capital-weighted Topix index likewise eased 0.82 percent to 979.48 at the end of the morning session.

But both indexes changed direction again in afternoon trade, and the Nikkei was essentially level with a gain of 0.08 percent just before 2:30 p.m. local time. The Topix was back in black to the tune of 0.12 percent.

Analysts say investors are cautious after disappointing fourth quarter earnings from companies like world No. 1 chipmaker Intel Corp., and General Motors Corp., the world's largest automaker.

Nissan Motor, Japan's second-ranked carmaker, dropped 3.74 percent to 721 yen.

But troubled retailer Daiei Inc continued to buck the trend, jumping 4.24 percent to 123 yen.

Daiei rose on reports that its main creditor banks had agreed to retire 120 billion yen ($907 million) in preferred shares they bought last year as part of a revival plan.

Blue chips down

In Seoul, shares were lower at noon as market heavyweight Samsung Electronics fell a day after announcing 2001 earnings and a reduced 2002 spending plan.

The Kospi dropped 1.51 percent to 700.20 while the over-the-counter Kosdaq slipped 2.26 percent to 71.26.

Samsung fell 2.49 percent to 294,000 won, while Hynix Semiconductor shed 6.7 percent to 2,495.

Hynix's decline was triggered by a report that rival and bidder Micron Technology had offered $3.2 billion for several plants.

Analysts said the price was much lower than expected, which spurred a negative view on the deal.

Taiwan higher after four days of decline

In Taiwan, shares extended a four-day session pullback due to heavy selling in local microchip shares.

The Taiex finished the morning 1.06 percent down at 5,430.24.

In Hong Kong, stocks dropped in mid-morning trade on dismal forecasts by industry leaders.

The Hang Seng Index was off 0.52 percent at 10,906.84 in early afternoon trade.

Singapore shares likewise fell on the back of dismal U.S. markets news, pulling down technology and blue chip stocks.

The Straits Times index dipped 1.22 percent at 1,654.06.

Gold shines

In Australia, gold stocks continued to defy broader declines, rallying on expectations of further consolidation and confidence about the gold price.

The benchmark S&P/ASX 200 slipped 0.8 percent to 3,398.5 on the back of a weaker Wall Street, but the gold sector subindex rallied 1.2 percent.

Australia's largest gold producer, Normandy Mining, which has been the subject of a long takeover battle between two of the world's largest producers, rose three cents to A$2.04.

Normandy was lifted by a 2.4 percent rally in the share price of its U.S.-based bidder Newmont Mining.

The increase in Newmont's share price pushed the value of its bid for Normandy up to A$2.08 per share.

But shares in New Zealand were not spared from the debilitating effects of a weaker U.S. market.

The benchmark NZSE-40 index dropped 0.34 percent to 2,090.05.

Wall Street suffered a sharp downturn on Wednesday, the Dow Jones industrial average crumbling 2.1 percent or 212 points to 9,712.27.

Nasdaq lost 2.8 percent to 1,944.44.