Asian markets mixed, Tokyo up


Tokyo shares were higher by midday, bouyed by tech issues

HONG KONG, China -- Asian markets ended the morning mixed on Tuesday, with Tokyo lifting on support from banks and several tech issues.

Japan's benchmark Nikkei 225 average ended the morning up 140.25 points, or 1.25 percent, to 11,401.34. The broader Topix index was up 0.13 point, or 0.01 percent, at 1,073.33.

Elsewhere in the region, South Korea was higher on hopes of a ratings upgrade, while Taiwan firmed on heavy buying in downstream tech shares.

Australia and Singapore were both dragged down by a decline in blue chips. Hong Kong eased on concerns over a possible U.S. interest rate hike.

Also weighing on Asian markets was a lackluster Wall Street performance on Monday, with the Dow Jones Industrial Average ending down 1.4 percent and the tech-heavy Nasdaq falling 2.1 percent.

In Tokyo, the key index was lifted by rise in a handful of tech shares, which soared on a report that computer and chipmaker Fujitsu Ltd is likely to post sharp turnaround profits.

Fujitsu rose 1.77 percent to 1034 yen.

In the banking sector, Mizuho Holdings and UFJ Holdings rose 1.66 percent and 2.33 percent respectively to 307,000 yen each.

Japan's dominant mobile phone carrier NTT DoCoMo added 1.19 percent to 340,000 yen. But parent NTT was down 0.6 percent to 484,000 yen.

Consumer electronics giant Sony Corp inched up 0.3 percent to 6,790 yen, while rival Kyocera Corp added 2.15 percent to 9,490 yen.

In the auto sector, Toyota Motor dropped 1.33 percent to 3720 yen and Honda Motor slipped 0.18 percent to 5440 yen. In contrast, Nissan added 0.4 percent to 933 yen.

Ratings upgrade

Seoul shares were flat in early trade as overseas negatives were offset by upbeat comments about the Korean economy and a possible sovereign rating upgrade next year.

The benchmark Kospi edged down 0.02 percent to 879.27, while the over-the-counter Kosdaq dropped 1.17 percent to 92.53.

Electronics giant LG Electronics shed two percent to 44,000 won.

Display maker Samsung SDI dropped 2.4 percent to 102,500 won, while Korea's largest retail bank Kookmin Bank fell 2.6 percent to 55,400 won.

But the downside was limited as top policy makers boosted sentiment.

Finance Minister Jin Nyum said Moody's Investors Service was expected to raise Korea's sovereign rating by two notches to an A grade by February 2003.

In Australia, stocks fell to a near four-week low by midday after a lackluster Wall Street session and weak commodity prices pushed blue chips lower. The benchmark S&P/ASX 200 index was down 28.8 points, or 0.84 percent, at 3,395.9.

Weakness in mining majors, banks, and heavyweights such as News Corp dragged the local bourse lower. News declined 1.7 percent.

Retail giant Coles Myer dominated local market news with its stock slipping more than 4.8 percent after it unveiled plans to scrap a popular shareholder discount scheme, but confirmed profit and savings targets.

Coles stock dropped 43 cents to A$8.37, while rival Woolworths fell 0.6 percent to A$12.43.

Resources majors were down on weak commodity prices fell, while the nation's four largest banks slipped amid expectations of a possible interest rate rise next month.

Tech buying

Taiwan stocks set a new 17-month high in early trade as investors chased downstream tech companies, which capped the effects of Wall Street overnight losses.

The benchmark Taiex was up 7.16 points, or 0.12 percent, to 6,226.33.

DVD-Rom maker Behavior Tech surged T$2.10 o T$32.30, while display screen maker AU Optronics gained T$0.50, or 0.95 percent, to T$53.

In Singapore, the Straits Times index was down 6 points or 0.33 percent to 1792.58 heading towards noon. Shares in Keppel Corp weakened on concerns that a privatization plan for its telecom unit could hit a snag.

Keppel fell six cents to S$4.08. The company has come under scrutiny for failing to disclose a loan it made on behalf of Keppel Telecommunications & Infrastructure to acquire a U.S. firm.

Index heavyweight Singapore Press Holdings gained 20 cents at S$24.19 ahead of its results after the market close.

In Hong Kong, property and technology issues led shares lower in early trade on persistent worries that U.S. interest rate would be increased this year.

The benchmark Hang Seng Index was down 68 points or about 0.63 percent at 10,768 near midday.

Shares of New World Development fell 2.34 percent to HK$6.25.

Shares of China's largest offshore oil producer, CNOOC Ltd, were down 1.65 percent at HK$8.95 ahead of the release of its full year earnings later in the week.

Banking leader HSBC was flat, off 25 cents to HK$89.00. China Mobile eased 15 cents or 0.65 percent to HK$23.05.