Asian markets mixed by midday


Airline shares slipped on surging jet fuel prices following the escalation of violence in the Middle East

HONG KONG, China -- Asian markets were mixed by midday Tuesday, with Tokyo ending the morning higher as investors chased tech shares on the back of Nasdaq's rise.

Petrochemical shares were also higher as escalating violence in the Middle East pushed crude prices to a six-month peak in New York. But airline shares slipped on higher fuel prices.

The benchmark Nikkei average rose 0.68 percent, or 74.96 points, to 11,103.66, while the broader capital-weighted Topix index added 0.76 percent to 1,061.47.

In other markets in the region, South Korea, Taiwan and Singapore were also higher on tech strength.

Elsewhere, Australian shares were lower on fears of an interest rate hike, while Hong Kong slipped on investor caution towards the release of units in the government's Tracker Fund.

On Wall Street Monday, the tech-laden Nasdaq Composite Index added 0.94 percent to 1,862.62 points, boosted by a rise in Sun Microsystems.

But the Dow Jones Industrial average fell 0.4 percent to 10.362.70.

In Tokyo, Japan's top oil producer, Arabian Oil Co, firmed 1.9 percent to 696 yen.

Exporters up

Consumer electronics giant Sony climbed 2.84 percent to 6,890 yen, while Kyocera added 1.01 percent to 9,020 yen.

Export-related shares rose in Japan after upbeat data on U.S. manufacturers raised hopes the U.S. economy was in the midst of a strong recovery.

But banks stifled the market's advance as fears over deflation and bad debts continue to haunt investors.

Mizuho Holdings fell 1.71 percent to 287,000 yen, while UFJ Holdings dipped 2.37 percent to 288,000 yen.

In South Korea, the benchmark Kospi was up 19 points or 2.17 percent at 894.83.

About 40,000 unionized workers in Korea's auto, shipping, and other sectors are expected to stage sympathy strikes later Tuesday in support of striking power workers.

State-run utility Korea Electric Power Corp added 0.2 percent to 23,800 won, even as 4,000 workers stay out in protest at the government's plan to privatize the utility sector.

South Korea's top automaker, Hyundai Motor, slipped 0.3 percent to 40,800 won, but steel maker POSCO jumped 4.68 percent to 145,500 won.

Chip giant Samsung Electronics added 1.5 percent to 379,500 won on growing expectations of strong first-quarter earnings.

Rate hike

Australian stocks tumbled on Tuesday as investors shuffled positions ahead of a possible interest rise by the Reserve Bank.

Major banks, telecoms, media, and industrial stocks all lost ground, but resources bucked the trend as they benefited from strong oil and gold prices.

The benchmark S&P/ASX 200 index slipped 25 points, or 0.8 percent, to 3,388.7.

Westpac led banks down, falling 2.4 percent to A$15.23.

Media giant News Corp dropped 1.8 percent to A$12.89 as negotiations continued on a bailout plan for the troubled Kirch media group.

Resources leader BHP Billiton rose 1.4 percent to A$11.56, while Woodside Petroleum added 0.2 percent to A$14.72.

In Taiwan, the key Taiex was up 86.73 points, or 1.4 percent, at 6,273.170.

Grand Petrochemical surged 5.14 percent to T$18.40, while China Petrochemical rose 2.87 percent to T$7.15.

In the tech sector, TSMC added 1.57 percent at T$97.00 and rival UMC gained 2.83 percent to T$54.50.

Tracking Nasdaq

Singapore's Straits Times Index was up 0.15 percent, or 2.68 points, at 1,791.77.

Electronics contract manufacturer Venture rose 2.22 percent to S$18.40, while computer peripherals maker Creative Technology edged 0.90 percent up to S$22.30.

Chartered Semiconductor added 0.82 percent to S$4.94.

In Hong Kong, the Hang Seng Index dipped 197 points or 1.79 percent to 10,836 near midday.

Analysts expect the release of HK$6 billion ($769 million) worth of units in the government's Tracker Fund for the second quarter would cap the market's upside potential.

The Tracker Fund comprises units in blue chip shares, which the government accumulated during its market intervention at the height of the Asian financial crisis in 1998.

Chinese offshore producer CNOOC rose 1.55 percent to HK$9.85, while PetroChina added 0.62 percent at HK$1.62. Sinopec rose 1.59 percent at HK$1.28.