Banks drag Tokyo down by midday


Greenspan's upbeat comments on the U.S. economy pushed Asian markets higher

HONG KONG, China -- Tokyo shares were marginally lower by midday Friday, but most other Asian markets continued to gain ground after upbeat comments on the U.S. economy from Federal Reserve chairman Alan Greenspan.

Tokyo was dragged down by banking shares, which sank on concerns over their massive bad loans. UFJ Holdings was down 12,000 yen or 4.7 percent to243,000 yen, while Mizuho Holdings lost 3.5 percent or 900 yen to 245,000 yen.

Greenspan said on Thursday the U.S. economy was emerging from recession and questioned the need for a fiscal stimulus package.

The benchmark Nikkei average ended the morning 3.05 points or 0.03 percent lower to 10,071.00, while the broader capital-weighted Topix index gave up 0.05 percent to 979.95.

Major technology shares rose on better-than-expected results from the world's biggest mobile phone maker, Nokia, and an ensuing 1.05 percent rise on the U.S. Nasdaq.

Sony put on 1.48 percent to 6,170 yen. The consumer electronics leader is set to announce relatively upbeat third-quarter earnings at the end of the day.

However, Tokyo's gains were outweighed by weakness in the banking sector, with Sumitomo Mitsui Banking losing 3.84 percent to 476 yen.

U.S. recovery

In Seoul, shares jumped three percent in late morning trade as banks advanced on privatization plans, while chipmakers and other blue chips rallied on Greenspan's comments.

The benchmark Kospi was up 3 percent to 780.58, while the over the counter Kosdaq rose 1.72 percent t 76.30.

Kookmin bank, South Korea's largest lender, shot up five percent to 62,100 won after the government said it would gradually sell its stake in Korea Exchange Bank.

Samsung Electronics, the world's top memory chipmaker, rose 5.65 percent to 327,000 won.

In Australia, shares held on to modest gains by early afternoon, although the resources sector eased off earlier highs.

The benchmark S&P/ASX200 index was up 11.0 points, or 0.32 percent at 3441.8.

After soaring in early trade, resources giant BHP Billiton slipped back to trade 0.8 percent weaker at A$11.42.

Improved sentiment

In other markets, shares continued to gain ground on improved market sentiment.

In Taiwan, the TAIEX was up 2.17 percent at 5,927.69. Shares there shot up after a positive statement from China that could ease cross-Strait tensions.

In Hong Kong, shares edged higher in early trade with the benchmark Hang Seng Index rising 0.81 percent to 10,828.36.

Cathay Pacific Airways rose 3.13 percent to HK$11.55 on expectations that air travel will pick up.

But early gains were trimmed as China Mobile, the mainland's top cellular phone operator, lost 0.68 percent to HK$22.00 on worries over competition, slowing subscriber growth, and its high valuation,

In Singapore, shares opened firmer, lifted by banking shares. The bellwether Straits Times Index was up 1.95 percent at 1,685.54.

Banks started the day on a strong note with DBS Group Holdings up 2.24 percent to S$13.70, and UOB rising 2.22 percent to S$13.80.