Asian markets lower by midday


Investors are concerned rescue packages offered by Japan's banks could further hurt their financial health

HONG KONG, China -- Asian markets were lower by midday Tuesday as investors weighed the fall in tech stocks and disappointing corporate earnings.

In Tokyo, stocks skidded lower over concerns about corporate profits and the banking sector's deteriorating financial health.

The benchmark Nikkei 225 average ended the morning down 102.74 points or 1.01 percent at 10.118.11, while the broader capital-weighted Topix index fell 12.92 points or 1.30 percent to 984.12.

Tech stocks including Fujitsu Ltd and Murata Manufacturing were among those to fall, along with consumer electronics leader Sony and banking giants Mizuho Holdings, Mitsubishi Tokyo Financial Group, UFJ Holdings and Sumitomo Mitsui Banking Corp.

Fujitsu dropped 2.25 percent to 867 yen after the Nihon Keizai Shimbun business daily said the chip and computer maker was expected to post a group operating loss of 50 billion yen ($374.4 million) for the year to March.

Murata, a maker of mobile phone parts, fell 3.17 percent at 7,320 yen after the company cut its forecasts for revenue, operating profit and pretax profit for the year to March due to weak demand and falling prices.

Sony Corp was down 50 yen or 0.83 percent to 5990 yen.

Banks were also lower, on worries that a rescue package for debt-ridden retailer Daiei Inc could set a precedent that would further hurt the financial health of Japanese banks.

Mizuho Holdings, the world's largest banking group by assets, fell 3.61 percent to 240,000 yen, while Sumitomo Mitsui Banking slid 1.99 percent to 493 yen. MTFG was down 12,000 yen or 1.52 percent to 778,000 yen.

Worse-than expected data

In Seoul, shares were lower by midday due to worse-than-expected December industrial output data and ahead of a cabinet reshuffle.

The main Kospi index fell 0.78 percent to 774.12, while the over-the-counter Kosdaq lost 0.79 percent to 79.36.

December output fell by 2.4 percent from the previous month.

Local media reported at least three cabinet members were to be replaced Tuesday in a shuffle sparked by recent scandals and as the ruling party gears up for local elections in June.

But better-than-expected earnings at Texas Instruments pushed its local counterparts higher including memory chip giant Samsung Electronics, which advanced 1.01 percent to 322,000 won.

Federal Reserve meeting

Australian stocks were higher in the afternoon, but gains were capped as investors kept cautious ahead of a U.S. Federal Reserve policy meeting and before the domestic corporate reporting season takes off.

The benchmark S&P/ASX 200 index edged up 0.12 percent at 3,446.4.

Media giant News Corp, which is expected to post a dismal second-quarter earnings report soon, fell 1.6 percent to A$13.72.

Australia's flagship airline Qantas fell nine cents to A$3.72, ahead of a vote by creditors Tuesday on a A$514 million plan to sell the failed Ansett airline to the Tesna consortium.

In Taiwan, stocks slumped as the merger deal between two global chip giants become uncertain, prompting investors to take profits on the semiconductor sector's heavy gains.

The Taiex lost 1.72 percent to 5,903.76 by midday, after nearly setting a one-year high at Monday's close.

DRAM maker Windbond Electronics plunged 4.66 percent to T$26.6 on reports that the merger between chipmakers Hynix Semiconductor of South Korea and Micron Technology of the U.S. has been derailed.

China Mobile gains

In Hong Kong, shares were higher in morning trade, supported by a rise in China Mobile.

The benchmark Hang Seng Index rose 0.58 percent to 10,830.27.

China Mobile, China's biggest mobile phone operator, rose 1.4 percent at HK$21.80.

But shares in Singapore were lower after the higher quarterly loss forecast by Chartered Semiconductor Manufacturing hit some technology firms.

The bellwether Straits Times index slipped 0.62 percent to 1,761.87 in morning trade.

Chartered Semi posted a fourth-quarter net loss of $127.2 million compared with a profit of $77.4 million in the year-ago-quarter. Its shares fell 2.86 percent to S$4.76.