Asian markets lower on tech slump


South Korea led Asian markets lower on Thursday after tech shares slipped.

HONG KONG, China -- Asian markets were lower by midday Thursday, following Wall Street's overnight decline and fears of possible interest rate hikes.

Japan's market was closed for the Vernal Equinox holiday. Trading will resume on Friday.

Tokyo stocks had fallen sharply on Wednesday, with the benchmark Nikkei finishing down 2.26 percent, or 266.04 points, at 11.526.78.

In other markets Thursday, South Korea, Taiwan, Australia, Singapore and Hong Kong were all lower, trimmed by falls in tech stocks and fears that the next move for interest rates will be up.

Tech shares were hit hard following Nasdaq's overnight decline, and after Salomon Smith Barney trimmed its 2002 and 2003 earnings forecast for chip giant Intel Corp.

Intel's shares prices dropped 3.75 percent on Wednesday.

On Wall Street, the Down Jones Industrial Average finished down 1.26 percent, while the Nasdaq shed 2.55 percent on Wednesday.

Tech lower

In Seoul, the main Kospi was down 0.13 percent to 886.29 by midday, while the over-the-counter Kosdaq inched up 0.79 percent to 92.45.

Top memory chipmaker, Samsung Electronics, fell 2.15 percent to 341,000 won. Rival Hynix Semiconductor was down 3 percent to 1410 won.

But upbeat prospects for the U.S. economy pushed exporters such as Kia Motors, higher. The nation's second largest carmaker rose 3.3 percent to 13,900 won.

In Australia, stocks remained lower by midday as rate hike expectations, at home and abroad, capped gains of most blue chips.

The benchmark S&P/ASX 200 index lost 29.2 points, or 0.8 percent, to 3,438.1.

Shares in media giant and index heavyweight News Corp fell 2.0 percent to A$13.48.

Resources conglomerate BHP Billiton shed 1.9 percent to A$11.54, while Rio Tinto dropped 2.3 percent to A$38.39 after a three-day rally for base materials ended.

Downbeat forecast

Taiwan stocks gave back some of the gains from the previous session in early Thursday trade as a downbeat earnings forecast for Intel prompted tech selling.

The benchmark Taiex index was down 36.24 points, or 0.6 percent, at 6,022.64.

Memory chipmaker Winbond fell T$0.80, or 3.05 percent, to T$25.40. Rival Nanya Tech was down T$1.60, or 3.66 percent, to T$42.10.

In Singapore, the key Straits Times Index was down 0.80 percent, or 14.34 points, at 1,787.54.

Property stocks led losers, with CapitaLand tumbling 2.65 percent to S$1.84. Among blue chips, Singapore Press Holdings dipped 1.23 percent to S$24.0.

In Hong Kong, stocks were lower in early trade, tracking the slide on Wall Street. investors became nervous that interest rates might rise.

The Hang Seng Index was down 1.33 percent, or 146.52 points, at 10,890.08.

Henederson Land Development dived 7.37 percent at HK$31.40 after posting a 47 percent plunge in first-half earnings due to lack of completion of large-scale property developments.

PCCW, which reported a better than expected earnings result Wednesday, was steady at HK$2.025. Banking leader HSBC was down 1.1 percent to HK$89.75.