Tokyo down, Asian markets end mixed


Tokyo shares were sharply lower, ahead of a market holiday on Thursday

HONG KONG, China -- Asian markets ended mixed on Wednesday, with Tokyo stocks taking a sharp slide as investors locked in profits ahead of Thursday's holiday.

After putting on 2.6 percent Tuesday, the benchmark Nikkei 225 average lost most of that Wednesday. It finished down 2.26 percent, or 266.04 points, at 11,526.78.

The broader capital-weighted Topix index lost 1.34 percent, or 14.94 points, to 1,097.85.

Tokyo will be closed Thursday for the vernal equinox holiday.

In other markets, Australia maintained its early gains to end slightly higher, with hopes for continued domestic growth overshadowing fears of a possible interest rate hike.

South Korea ended lower as investors took a step back following the market's rapid bull-run, while Taiwan put on 152 points to end almost 2.6 percent higher at 6059.

Hong Kong closed 1.66 percent lower at 11,036.60. Singapore too was down heading towards the close.

Traders say investors are worried that the U.S. Federal Reserve's decision on Tuesday to hold interest rates steady could pave the way for possible rate rises later in the year.

National holiday

Analysts warned that a further rally in Tokyo is highly unlikely without swift government action on reform.

High tech bellwether Sony Corp dipped 3.91 percent to 6,890 yen, while Kyocera Corp declined 3.32 percent to 9,610 yen.

In the banking sector, Mizuho Holdings dropped 3.72 percent to 311,000 yen, UFJ Holdings tumbled 6.59 percent to 312,000 yen and Sumitomo Mitsui lost 4.83 percent to 552 yen.

Among automakers, Toyota Motor dropped 2.55 percent to 3,820 yen, while Honda Motor lost 2.83 percent at 5,500 yen. Nissan did better, dipping 0.4 percent to 956 yen.

In Seoul, shares inched lower by the close, following the rapid runup of the past six months that has seen the key Kospi index rise 90 percent.

The Kospi slipped 0.28 percent Wednesday to close at 887.48, while the over-the-counter Kosdaq finished down 0.99 percent to 91.66.

South Korea's gross domestic product in the fourth quarter of 2001 grew a provisional 3.7 percent year on year, the central Bank of Korea said.

Steel maker POSCO eased 2.32 percent to 147,500 won, while retailer Shinsegae fell 6.67 percent to 210,000.

Australian shares maintained their slight gains as expectations for continued domestic growth managed to offset growing fear of interest rate rises.

The benchmark S&P/ASX 200 index closed up 7.0 points, or 0.2 percent, at 3,467.3.

Toll road specialist Macquarie Infrastructure Group took the spotlight form after it announced it would issue new shares worth A$1 billion ($530 million).

The money will be used to fund its acquisition of a larger stake in a Canadian toll road, and other possible European and North American purchases.

Shares in Macquarie Bank, which earns fees from its MIG offshoot, rose 1.8 percent to A$33.70.

Higher oil prices and firm precious and base metals lifted resources stocks.

Resources conglomerate BHP Billiton rose 1.3 percent to A$11.76, while Oil Search rose 0.8 percent to A$1.20.

Diversified miner WMC rose 0.6 percent to A$9.91, but Rio Tinto eased 0.1 percent to A$39.30.

Gold miner Newcrest Mining rallied 9.5 percent to A$5.77.

In Taiwan, the benchmark Taiex share index closed up 152.22 points, or 2.58 percent, at 6,059.06. It broke through the 6,000-point barrier as buyers snapped up microchip shares.

Shares of TSMC, the world's largest contract chipmaker, jumped T$4.50, or 4.92 percent, to T$96, while rival United Microelectronics Corp (UMC) closed at T$52, up 4.21 percent.

Flash memory chipmaker Macronix surged the daily seven percent trading limit to T$30.90, while Nanya Tech was also up the maximum at T$43.70.

Memory Chipmaker Winbond Electronics added 3.15 percent to T$26.20, while rival Mosel Vitelic closed 2.82 percent higher at T$18.20.

Drying up liquidity

Singapore shares were weaker heading towards the close. The bellwether Straits Times Index was down 6.5 points, or 0.36 percent, at 1801.88.

Computer peripheral maker GES International tumbled 21.5 percent, or 18.5 cents, to S$0.675, ahead of the listing of its distribution arm, Digiland International, next week.

Singapore Airlines was down 2.01 percent at S$14.60. But media conglomerate Singapore Press Holdings rose 2.1 percent to S$24.20 ahead of the release of its half-year results next week.

In Hong Kong, the Hang Seng Index closed 186.23 points or 1.66 percent lower at 11,036.60.

Top fixed line phone carrier Pacific Century CyberWorks dropped 2.41 percent to HK2.025, ahead of its earnings release later Wednesday. Diversifed conglomerate Hutchison Whampoa slipped 0.73 percent to 68.25.

Banking leader HSBC eased 0.79 percent to HK$90.75.