Tokyo down on negative sentiment


Japanese banks led the market's decline following a ratings downgrade by Standard & Poor's

HONG KONG, China -- Asian markets finished lower on Wednesday led by Japan, which fell for a fourth straight session on negative market sentiment.

The benchmark Nikkei average lost 0.58 percent or 54.75 points to 9,420.85, ending at a fresh 18-year closing low for the second day in a row. Mizuho Holdings and other financial stocks led the decline.

The broader capital-weighted Topix index shed 0.41 percent or 3.76 points to 922.1, also a new post-bubble low.

In other markets, South Korea, Singapore and Taiwan shares finished the day higher on strong corporate data.

Hong Kong finished down, dragged lower by losses in telecom shares, while Australia also ended the trading session in negative territory after a heavy sell-off of blue chips.

In Tokyo, financial stocks slumped on fading investor hopes for the government's pledged structural reforms.

Big banks tumbled after rating agency Standard and Poor's downgraded Mizuho Holdings' member banks and four other lenders late Tuesday.

Mizuho, the world's biggest bank by assets, fell 4.76 percent to a record closing low of 200,000 yen. Asahi Bank plunged 7.79 percent to 71 yen, while Sumitomo Mitsui lost 5.35 percent to 407 yen.

Top automaker Toyota Motor dropped 0.31 percent to 3,260 yen, while Honda Motor fell 0.20 percent to 5,110 yen.

But selected chipmakers were higher. Toshiba added 1.29 percent to 394 yen, while PC and chipmaker NEC Corp gained 0.23 percent to 884 yen.

Strong earnings

South Korean shares closed a touch higher after index heavyweight SK Telecom and other companies with strong earnings advanced on institutional buying.

The bellwether Kospi finished up 0.22 percent at 741.55, while the over-the-counter Kosdaq ended 0.52 percent higher at 74.74.

SK Telecom, the nation's largest mobile phone carrier, firmed 2.85 percent to 253,000 won after it reported its net profit rose 20 percent to 1.14 trillion won in 2001.

Hyundai Motor Co, South Korea's largest automaker, shot up three percent to 29,950 won on rising sales. It reported a record profit of about $900 million for 2001.

Hanjin Shipping closed limit-up by 15 percent at 61,50 won on rising orders.

Blue chips down

The Australian stock market closed lower as a sell-off of blue chips overcame support for the gold sector and selected resources heavyweights.

The benchmark S&P/ASX 200 index closed down 27 points or nearly 0.8 percent at 3,424.5 points, with a 3.3 percent slide in media giant News Corp to A$12.75 applying the most pressure.

Investment house Macquarie Bank was the biggest loser after ending the day down more than 10 percent to A$32.72.

But a rally in the gold price in New York, as well as acquisition talks for top producer Normandy Mining, lifted gold shares.

Normandy, which is expected to be absorbed by Denver-based Newmont Mining, shot up four percent at A$2.37. Lihir Gold also ended strongly up six percent to A$1.58.

Elsewhere, diversified resources BHP Billiton closed up 1.4 percent to A$11.85, although heavy selling dented Anglo-Australian rival Rio Tinto. Its shares shed 2.8 percent to A$39.51.

In the banking sector, Commonwealth Bank lost 2.5 percent to A$31.96 and market leader National Australia ended down one percent to A$33.63.

Higher ahead of holidays

Taiwan stocks ended the day higher as heavily weighted memory chipmakers led the way on improving January corporate sales, ahead of the long Lunar New Year holidays.

The benchmark Taiex index rose 1.4 percent, or 81.83 points, to close at 5,926.08 points, reversing a three-session losing run.

Taiwan's stock market will be closed beginning Thursday for the holidays and reopens on February 18.

Memory chipmaker Nan Ya Technologies rose T$2.5 or 5.1 percent to T$41.4 after it announced its January sales soared 197 percent to T$2.52 billion from a year ago.

Taiwan Semiconductor Manufacturing Co rose 1.17 percent to T$86.50 after its chairman said the firm expected sales to rise 20-30 percent in 2002.

But shares of United Microelectronics Corp fell 1.95 percent to T$45.20. It expects sales to fall 10 percent in the first quarter 2002 from the previous quarter.

Bargain buying

Singapore shares stayed firm near the close. Blue chips attracted bargain buying after being beaten down for the past three days.

The bellwether Straits Times Index was up 1.15 percent or 19.87 points at 1,747.50.

Banking firm DBS Group Holdings rose 4.2 percent to S$14.90, while United Overseas Bank added 1.4 percent to S$14.60.

Media conglomerate Singapore Press Holdings gained 1.88 percent to S$21.70.

In Hong Kong shares were flat. Telecom issues weighed on the market on competition fears after China Unicom won a virtual mobile license to operate in the territory.

The Hang Seng Index was down 16.8 points or 0.16 percent at 10,592.39.

Pacific Century CyberWorks lost 2.08 percent to HK$1.88, but China Unicom shares gained 1.36 percent at HK$7.45.