Asian markets mixed on U.S. comments


Positive comments on the U.S. economy failed to inspire Japanese investors ahead of Thursday's holiday

HONG KONG, China -- Asian markets were mixed by midday Wednesday, with Tokyo ending the morning lower as investors took profits ahead of a national holiday Thursday.

The benchmark Nikkei 225 average ended the morning down 179.35 points, or 1.52 percent, at 11,613.47, while the capital-weighted Topix fell 9.17 points, or 08.2 percent, to 1,103.62.

Early gains in Tokyo stemming from the U.S. Federal Reserve's positive comments on the U.S. economy were erased as the day wore on, with Japanese tech stocks dipping. Banks were also down.

As expected, the Fed left U.S. interest rates unchanged. Its view that the U.S. economy was expanding at a 'significant pace' provided relief for exporters, and lifted South Korea, Taiwan and Australia. But Singapore and Hong Kong were down

Profit taking

In Tokyo, top semiconductor testing-device maker Advantest fell 3.67 percent to 10,490 yen.

Tokyo Electron, a maker of semiconductor-manufacturing equipment, ended the morning down 0.83 percent at 9,510 yen.

Bridgestone Corp bucked the trend, up 3.13 percent at 1,877 yen.

Investors are also focused on the Bank of Japan's policy board meeting. The central bank is expected to keep its current stance of providing excess liquidity when it concludes its two-day meeting Wednesday.

Mizuho Holdings, the world's largest bank by assets, slipped 0.62 percent to 321,000 yen, while UFJ Holdings fell 4.19 percent to 320,000 yen.

In the auto sector, Toyota Motor fell 1.28 percent top 3,870 yen and Honda Motor lost 2.12 percent to 5,540 yen.

In Seoul, shares extended gains to an eighth day as exporters LG International and Trigem Computer soared on more signs of a recovery in the U.S. economy.

The main Kospi rose 0.94 percent to 898.37, while the over-the-counter Kosdaq added 0.94 percent to 93.45.

PC maker Trigem jumped 9.1 percent to 17,300 won, after Hewlett-Packard said preliminary estimates showed shareholders had approved its purchase of Compaq in a proposed $21 billion deal.

Trigem exports its products to HP.

LG International, a trading arm of the LG Group, soared 12.4 percent to 6,240.

Chip giant Samsung Electronics was up 0.85 percent at 352,000 won, while Hynix Semiconductor dropped 2.26 percent to 1,510 won.

Higher growth

Australian shares remained in positive territory by midday as expectations for higher economic growth and higher profits offset rate hike fears.

The benchmark S&P/ASX 200 index was up 3.4 points, or 0.1 percent, at 3,463.7.

Higher oil prices and firm metal prices boosted resources stocks.

BHP Billiton rose 1.4 percent to A$11.77 and Rio Tinto added 0.4 percent to A$39.51.

In the banking sector, Westpac Banking Corp gained 0.4 percent to A$15.98, while National Australia Bank added 0.2 percent to A$34.93.

In Taiwan, stocks settled into a tight range in early trade as semiconductor shares tracked Wall Street gains overnight. Investors were cautious after the U.S. Federal Reserve left interest rates unchanged.

The benchmark Taiex share index initally fell, before recovering sharply to gain 2.16 percent or 127.81 points to 6033.65.

Taiwan Semiconductor Manufacturing Co rose 0.55 percent to T$92, while memory chipmaker Macronix gained 1.04 percent to T$29.20.

Failed to inspire

In Singapore, shares eased in early trade. The key Straits Times Index was down 0.39 percent, or 6.99 points, at 1,891.42.

Computer peripherals maker GES International tumbled 21.5 percent, or 18.5 cents, to S$0.67.

In Hong Kong, stocks were lower in early trade as investors continued to take profits on China Mobile after its results.

The Hang Seng Index was down 0.95 percent, or 107.06 points, at 11,115.77

China Mobile was down 0.61 percent at HK$24.35. Property developer Cheung Kong Ltd was 0.35 percent lower at HK$70.50.

Diversified conglomerate Hutchison Whampoa fell HK$68.50, down 0.36 percent.