Tokyo, HK lower on U.S. decline

HONG KONG, China -- Asian markets crumbled by midday Tuesday, dragged down by Wall Street's decline on Monday and overall negative sentiment.

In Japan, the benchmark Nikkei average ended the morning down 12.66 points or 0.13 percent at 9,619.27, while the broader capital-weighted Topix index fell more sharply, losing 12.26 points or 1.30 percent to 931.25.

Markets in Australia, Hong Kong and Singapore were all lower, but Korea moved against the trend to be up about 0.7 percent.

In Tokyo, shares ended the morning session slightly lower, led by falls in brokerages.

Nomura Holdings, Japan's top broker, lost 6.37 percent to 1,220 yen.

The U.S. dollar weakened against the Japanese yen, trading at the132 yen level, in line with its overnight trend in New York.

Doubts over the painful but vital economic reforms pledged by Prime Minister Junichiro Koizumi continued to weigh on the market.

Koizumi has seen his approval-rating plummet after his surprise sacking last week of popular Foreign Minister Makiko Tanaka.

Despite the downward trend, some previously battered bank and high-tech issues managed to gain ground.

Chip and computer maker NEC was up 0.11 percent to 885 yen. Mizuho Holdings recovered somewhat from Monday's fall, to be up 6000 yen or 3 percent to 209,000 yen.

Consumer electronics leader Sony lost 2 percent to 5690 yen and rival Matushita Electric Industrial eased almost 2.5 percent to 1656 yen.

Tracking U.S. decline

South Korean shares initially moved lower as steel giant Pohang Iron and Steel Co and Samsung Electronics tracked U.S. losses.

But the bellwether Kopsi finished the morning up 5.54 points or about 0.7 percent at 735.75.

POSCO dropped two percent to 123,000 won. Samsung shed one percent to 309,000 won before recovering 9000 won to be up almost 2.9 percent at 321,000 won.

SK Telecom, Korea's largest mobile carrier rose 0.82 percent to 247,000 won.

Hynix Semiconductor initially gained 1.2 percent to 2480 won on reports its chief executive left for the United States to complete alliance talks with U.S. rival Micron Technology. Later in the day it slipped into the red at 2445 won.

U.S. stocks slipped on Monday, sending the broader market to a three-month low, on concerns about the honesty of corporate financial statements in the wake of the Enron collapse.

The Down Jones Industrial Average shed 2.22 percent, while the tech-heavy Nasdaq Composite Index lost 2.9 percent to close at 1,855.53.

Resisting U.S. blues

The Australian stock market opened steady on strength in resource stocks, but eased into the red by midday.

The benchmark S&P/ASX 200 index was down 6.5 points or 0.2 percent to 3,450.8.

Media giant News Corp fell 2.8 percent to A$13.17 as it is widely expected to unveil disappointing results in the next two weeks.

Banks also saw a reversal of their recent good fortune with leader National Australia Bank and Commonwealth Bank down 0.2 percent and 0.4 percent respectively to A$34.55 and A$ 33.25.

In the resources sector there was strong interest in gold stocks.

Diversified miner BHP Billiton gained 1.4 percent to A$11.72, while Anglo Australian mining giant Rio Tinto was steady at A$40.55.

Shares in Taiwan slipped in early trade as Wall Street's sharp overnight losses intensified lingering caution ahead of the long Lunar New Year holidays.

The benchmark Taiex share index was down one percent or 58.30 points at 5,791.55.

United Microelectronics, the world's second largest contract chipmaker, was unchanged at T$45.80 after announcing on Tuesday it has sealed a manufacturing agreement with U.S. Cirrus Logic.

Bank down

Shares in Singapore were likewise lower as banks and blue chips skidded in early trade.

The bellwether Straits Times Index was down 1.16 percent or 20.38 points at 1,737.77.

DBS Group Holdings dropped 2.7 percent to S$14.40, while United Overseas Bank fell 2.03 percent to S$14.50.

Media conglomerate Singapore Press lost 2.73 percent to S$21.40.

Stocks in Hong Kong opened sharply lower led by blue chips including banking giant HSBC Holdings.

The benchmark Hang Seng Index was down 1.55 percent to 10,555 shortly before midday.

HSBC Holdings dropped 1.71 percent at HK$86.25 as some investors remain concerned over the bank's exposure to North America.

But shares of China's top personal computer maker Legend Holdings bucked the market with a three percent gain following the release of better-than-expected third quarter earnings.