Nikkei lower as techs, banks slump

HONG KONG, China -- Tokyo shares slumped by midday Monday, dragged down by earnings worries for tech issues and further declines among big banks.

Mizuho Holdings, the world's biggest bank by assets, lost 12,000 yen or 5.5 percent to 206,000 yen.

At one point in the morning it touched a record low of 205,000 yen.

The tech-sensitive Nikkei 225 average was down 110.16 points or 1.13 percent to 9.681.27, while the broader Topix index was down 8.87 points or 0.93 percent at 947.39.

The Nikkei is again below the Dow Jones industrial average - something not seen for more than 40 years. The Dow closed Friday at 9907.26, compared with the Nikkei's Friday close of 9791.43.

Elsewhere in the region, markets in Australia, New Zealand, Hong Kong and Taiwan moved into the black. But Korea was down.

In Tokyo, chip and computer maker NEC gave up 6.41 percent to 876 yen.

TDK Corp, the world's biggest maker of magnetic heads for hard-disk drives, plunged 7.94 percent to 5,450 yen ahead of its results for the latest quarter.

Deteriorating confidence about the government's economic reform plans hit bank issues.

Prime Minister Junichiro Koizumi's support rating slumped after his surprise sacking last week of Foreign Minister Makiko Tanaka, analysts said.

Along with the drop by Mizuho Holdings, Sumitomo Mitsui Banking Corp lost 3.36 percent to 431 yen. UFJ Holdings and Mitsubishi Tokyo Financial Group both dropped about 1.6 percent to end the morning at 237,000 and 736,000 yen respectively.

Blue chips up

South Korean shares initially were buoyed by chip giant Samsung Electronics Co's advance due to the ongoing restructuring efforts of the memory chip industry.

Samsung rose 1.94 percent to 315,000 won, pushing the bellwether Kospi to 746.04. Later it dropped to the 735 level.

Analysts expect Samsung to increase further as it is likely to reap the most benefit if alliance talks between rival Hynix Semiconductor and U.S. Micron Technology are concluded.

Hynix gained 1.3 percent to 2,650 won on reports that Germany's Infineon Technologies had offered better terms than Micron.

Banks and miners

The Australian stock market held up firmly to midday as investors flocked to blue chip banking and resource stocks.

The benchmark S&P/ASX 200 index was up 16.1 points or 0.47 percent to 3,462.1.

But media giant News Corp remained weak, dropping 0.5 percent at A$13.33. It is expected to post dismal earnings later this month.

Banks were firm. Commonwealth Bank rose 1.2 percent to A$33.18, while National Australia Bank gained 0.8 percent to A$34.83.

Westpac Bank put on 13 cents to A$15.67 on reports it was in talks to sell its AGC consumer credit business.

Resources giant Rio Tinto rose 1.6 percent to A$40.25, while rival BHP Billiton rose 1.6 percent at A$11.48, due to continued interest in the local sector from offshore buyers, analysts said.

Australia's largest gold producer Normandy Mining was also up 3.3 percent to A$2.21.

Lunar holidays

In Taiwan, stocks were higher in early trade on hopes for sound corporate January sales, but analysts noted lingering caution ahead of the long Lunar New Year holidays.

The benchmark Taiex rose 42.42 points or 0.72 percent at 5,900.35.

Taiwan's listed firms are to unveil their January sales by February 10, while the stock market will be closed on February 7 for the holiday. It will reopen on February 18.

Leading private bank Chinatrust Commercial Bank rose 4.17 percent to T$25.

But chipset designer VIA Technologies fell 2.94 percent to T$148.50 after revealing sales of T$2.72 billion in January, down 12 percent from T$3.09 billion in January 2001.

Singapore blue chips were off to a weak start as market heavyweights United Overseas Bank and City Developments were hit by heavy selling.

The bellwether Straits Times index was down 0.23 percent to 4.112 points at 1,777.31.

United Overseas Bank was down 0.67 percent at S$14.90 while City Development fell 1.44 percent to S$6.85.

In Hong Kong, shares were steady in early trade ahead of the start of the territory's earnings reporting season, which analysts fear could yield some unpleasant surprises.

The Hang Seng Index was up 0.22 percent at 10,714.78.

Keeping the main index in positive territory was China Mobile, which gained 0.45 percent to HK$22.40, and rival China Unicom, which rose 1.33 percent at HK$7.60.

Weighing on the market was Legend Holdings, falling 1.42 percent to HK$3.475, ahead of the release of its third quarter results later Monday.

Analysts forecast that Legend would post about a one percent rise in net profit to HK$219.25 million for the quarter ended December 31, 2001.