Asian markets mixed by midday

HONG KONG, China -- Asian markets were mixed by midday Monday. Tokyo, Korea and Australia slipped on profit taking, but Hong Kong, Singapore and Taiwan tracked gains in U.S. counters last week.

Tokyo's main index dropped by midday after profit taking by domestic institutional investors capped an earlier rally in technology issues.

The Nikkei average fell 53.63 points, or 0.45 percent at 11,832.16, while the broader Topix index rose 4.72 points, or 0.43 percent at 1,112.85.

Big banks and some Japanese technology stocks were higher, but NTT DoCoMo and automakers Nissan and Honda fell.

Analysts said investors are cautious about the speed of the rally in the markets. Also on their minds was the release last Friday of GDP data for Japan, showing a 1.2 percent economic contraction in the December quarter.

The U.S. markets got a boost Friday from news of falling unemployment. That added to positive data earlier in the week pointing to improving business conditions.

Unemployment numbers for February came in lower than expectations, falling 5.5 percent in February for the second month in a row, from 5.6 percent in January.

The blue chip Dow Jones industrial average gained 0.45 percent, while technology-laden Nasdaq composite index jumped 2.55 percent.

Tech issues rose after U.S. network computer maker Sun Microsystems and computer chipmaker Intel Corp said quarterly results are expected to meet expectations.

Japan's top chip-testing device maker, Advantest Corp, lost 4.05 percent to 11,130 yen, while Fujitsu rose 4.2 percent to 1,067 yen.

Mitsubishi Electric slipped 3.0 percent at 550 yen, but NEC Corp added 2.09 percent at 1,170 yen.

Mizuho Holdings, the world's largest bank by assets, ended the morning up 2.75 percent at 373,000 yen, while Sumitomo Mitsui added 0.33 percent at 612 yen.

In the auto sector, Japan's top carmaker Toyota Motor rose 2.45 percent at 3,760, but rival Honda Motor slipped 2.54 percent at 5,380 yen.

Heavy selling

South Korean shares retreated early Monday on profit taking ahead of the expiry of options and futures late in the week.

The key Kospi fell 0.54 percent at 820.81, while the over-the-counter Kosdaq rose 1.36 percent at 85.23.

Samsung Electronics, the world's largest chipmaker, dropped 1.15 percent to 345,000 won,

South Korea's largest lender, Kookmin Bank, lost two percent to 53,200 won.

Bucking the trend were South Korea's largest mobile phone carrier, SK Telecom Co, which rose 0.9 percent to 277,000 won, and state-run KT Corp, which gained 0.8 percent to 59,500 won.

Pohang Iron and Steel Co Ltd rose 1.48 percent at 137.500 won after falling more than three percent last week, hurt by a U.S. decision to impose heavy tariffs on steel imports.

In Australia, shares edged lower by midday on profit taking and a weak banking sector.

Index heavyweight and media giant News Corp climbed 1.0 percent to A$14.14 amid further signs of a U.S. economic rebound, but failed to lift the market.

The S&P/ASX 200 index slipped 6.2 points, or 0.2 percent to 3,479.1

Food and household retailers were also strong performers with Woolworths and Coles Myer slightly higher to A$12.58 and A$8.20 respectively.

But the probability of interest rates being raised ahead of an expected economic recovery dragged major banks lower. ANZ lost 1.3 percent to A$17.81.

Australia's leading phone carrier, Telstra, was flat at A$5.65, hurt by profit-taking after rallying last week on a solid first half earnings result.

Elsewhere in the market, mining giant Rio Tinto dropped 1.3 percent to A$39.58 on weakness in base metal prices.

Tech issues higher

Taiwan shares rose more than two percent in early trade as investors switched back to technology shares after gains in U.S. stock markets.

The main Taiex index rose 142.91 points, or 2.38 percent, to 6,154.56.

Top personal computer maker Acer gained T$0.50, or 2.33 percent, to T$22.00 after it said on Friday its February sales rose to T$3.95 billion, up 54 percent from January.

Memory chipmakers were among the biggest winners. Winbond Electronics rose T$0.50, or 1.75 percent, to T$29.20, while rival Nanya Tech added T$1.30, or 2.78 percent, to T$48.10.

In Singapore, shares began the week on a strong note, with blue chips and technology stocks tracking gains on Wall Street.

The key Straits Times Index was up 0.71 percent or 12.81 points at 1,811.80.

United Overseas Bank (UOB) added 2.82 percent to S$14.60 after a surprise rise in 2001 net profit, boosted by its takeover of fourth-ranked Overseas Union Bank (OUB).

On Friday, UOB reported a 1.3 percent rise in net profit to S$924.6 million ($508.01 million) for the year ended December 21.

OCBC shares were up 0.77 percent at S$13.10, while DBS Group Holdings was flat at S$14.80.

Global electronics services provider Venture Manufacturing rose 0.57 percent to S$17.60.

In Hong Kong, stocks were slightly higher in early trade after strong gains in the U.S.

The benchmark Hang Seng Index was up 0.25 percent at 11,261.38.

Micro-motor maker Johnson Electric led the gains, up 0.96 percent to HK$10.55.

Shares of SmarTone Telecommunications, one of Hong Kong's top cellular phone operators, were unchanged at HK$9.50 ahead of the release of its first half results late on Monday.