Asian markets suffer IBM fallout


Yesterday's gainer, NTT DoCoMo, is selling off in Tokyo, where the broader tech market is down heading into afternoon

HONG KONG, China (CNN) -- Asian markets are lower heading into afternoon trade on Tuesday, with tech stocks dealing Japanese markets a knock.

The benchmark Nikkei 225 index is down 0.78 percent at 11,264.52 at the lunch break. The broad Topix index of all stocks on the first section is down 0.6 percent at 1,083.67.

But the market was less buffeted than many analysts expected by a report that Japan's watchdog Financial Services Agency has uncovered greater bad-loan problems than originally forecast at the big banks.

Mizuho Holdings, the world's largest bank group by assets, rose 3.45 percent to 300,000 yen after the news. UFJ Holdings added 12,000 yen or 4.18 percent to 299,000 yen.

Sign banks may be tackling problem

Some investors have taken the report in the Nihon Keizai Shimbun newspaper as a sign that banks are once again getting serious about writing off or tackling bad borrowers.

Large tech stocks such as Hitachi, Toshiba and TDK are down. Computer maker NEC is feeling the brunt of IBM's profit warning in the United States on Monday.

Mobile phone leader NTT DoCoMo fell 2.18 percent to 359,000 yen.

Japan's major car company stocks, including Toyota, Nissan and Mitsubishi Motors, are also off. Honda was flat.

In Seoul, South Korea's main index, the Kospi is down 0.91 percent at 892.45 heading toward noon. The market opened higher but was hit by selling after recent strong gains.

Hyundai Motor rose 0.7 percent to 43,150 won after reports that 10 percent shareholder DaimlerChrysler may seek closer ties.

South Korea's main airline, Korean Air Lines, is down, the effect of tension in the Middle East. The promise of higher oil prices has driven down other transportation companies and affected the broader market in Korea, which is the world's No. 4 importer of crude oil.

Mining stocks moving in Sydney

In Australia, the S&P/ASX 200 index is down 0.68 percent at 3,365.8 in afternoon trade.


Asian transportation stocks are suffering as Middle East conflict drives the price of oil higher

Tech stocks are also selling off on IBM's gloomy forecast. But mining companies such as Woodside Petroleum and BHP Billiton are gaining, both on tensions in the Middle East and after BHP's revised profit plan, released Monday.

The NAB is down again after slumping 2.3 percent in U.S. markets. Its profit plan and announcement of 2,050 job cuts failed to attract investors' attention when revealed on Monday.

In Wellington, the NZSE Top 40 index is down 0.12 percent at 2,070.35. As on Monday, a large block of Telstra Corp. stock is dominating the trading.

Telecom New Zealand, normally the volume leader, is up 0.4 percent at NZ$5.01.

In Taiwan, the benchmark Taiex index is down heavily, off 1.26 percent at 6,113.07. The tech-driven market is suffering the aftermath of IBM's profit warning in the United States.

Bank stocks, the other main driver of Taiwan's market as the industry deregulates, are also selling off after recent gains.

In Singapore, the Straits Times index is one of Asia's few gainers. It is up 0.06 percent at 1,766.72 at 11 a.m. local time.

Hong Kong's market is up 0.35 percent at 11 a.m., leaving the Hang Seng at 10,761.03. It has frequently run at odds to other Asian markets so far in 2002, and was one of the worst performers in the world in 2001.

Computer maker Legend Holdings is down, China's largest maker of PCs suffering the follow-on of IBM. But China Mobile is up, as is banking leader HSBC.