Asian markets lower on Nasdaq's slump


DoCoMo shares dropped after the company said it expects to sign up 30 percent fewer subscribers this year

HONG KONG, China -- Asian markets were mostly lower by midday Wednesday, dragged down by Nasdaq's slump.

But Tokyo shares rose on confidence a bank inspection would yield good results.

The benchmark Nikkei average ended the morning session up 146.32 points, or 1.32 percent, at 11,206.81, while the capital-weighted Topix index firmed 7.04 points, or 0.66 percent, to 1,078.70.

Major Japanese banks extended their gains into a sixth day after an apparent leak of the results of special inspections by the Financial Services Agency (FSA) showed that bad-loan losses may not be as high as feared.

But a slump in U.S. tech shares dampened sentiment in most Asian markets, particularly Taiwan, Singapore and Hong Kong.

In South Korea, shares were sharply lower ahead of Thursday's expiry of key stock options, while Australia shrugged off Nasdaq's decline and rose on a better bond market.

U.S. stocks fell Tuesday, led by technology shares, a day after IBM warned of disappointing profits.

The tech-heavy Nasdaq slumped 2.4 percent to 1742.57, while the Dow Jones industrial average dropped 40.41 points, or 0.39 percent, to 10,208.67.

Improved transparency

Tokyo shares reversed earlier losses by midday as sentiment picked up on views that Japan's banking system would improve transparency and gain in strength.

Mizuho Holdings, the world's biggest bank by assets, jumped 5.63 percent to 319,000 yen. UFJ Holdings surged more than 8 percent to 322,000 yen.

But worries over U.S. earnings weighed on some of the major Japanese high-tech issues. Copier and camera maker Canon Inc dropped 2.08 percent to 4,700 yen.

Japanese dominant mobile phone carrier NTT DoCoMo tumbled 3.97 percent to 399,00 yen after its chief executive Keiji Tachikawa told Reuters news agency it expects to sign up 30 percent fewer new subscribers in the current business year.

In South Korea, shares were sharply lower near noon as investors sold blue chips ahead of Thursday's expiry of key stock options.

The benchmark Kospi dropped 2.04 percent, or 27 points, to 861.67, while the over-the-counter Kosdaq slumped 3.9 percent to 82.4.

Memory chipmaker Samsung Electronics lost 2.6 percent to 359,000 won, while top mobile carrier SK Telecom fell 2.4 percent to 269,000 won.

Daewoo Motor Sales was up 6.6 percent to 9700 won on reports that GM and Daewoo unions are near agreement.

Better bond market

The Australian share market extended its gains in morning trade as investors shrugged off Nasdaq's decline. A better bond market helped nudge banks higher

The key S&P/ASX 200 index was up 13.7 points, or 0.41 percent, at 3,377.1 by midday.

National Australia Bank climbed 1.4 percent to A$33.48, while ANZ gained nine cents to A$17.90 on expectations it would inject about A$1 billion into a new funds management joint venture with ING.

But media giant News Corp lost one percent to A$12.39 on concerns it would take more assets of Germany's debt-ridden Kirch Group.

Resources giant BHP Billiton rose 14 cents at A$11.92, while rival Rio Tinto added 54 cents to A$38.52.

In Taiwan, stocks extended recent losses as tech issues followed their U.S. counterparts down, despite good March sales.

The benchmark Taiex lost 23.15 points, or 0.38 percent, to 6,046.70.

Taiwan Semiconductor Manufacturing lost T$1.50, or 1.64 percent, to T$90, tracking a 2.15 percent fall in its ADRs. Rival United Microelectronics Corp was down 0.96 percent at T$51.50.

Techs down

Singapore shares slipped in early trade as Nasdaq's sharp losses hit the technology sector. That dragged the main Straits Times Index down 0.93 percent, or 16.30 points, at 1,737.96.

Electronics contract maker Venture Manufacturing fell 2.82 percent to S$17.20, on rumors its U.S. partner Cisco Systems would miss its quarterly earnings forecast.

In Hong Kong, the key Hang Seng index lost one percent in early trade to 10.625.99.

Micro motor maker Johnson Electric slid 2.83 percent to HK$10.30.

China Mobile, the mainland's top mobile phone operator dropped 1.71 percent to HK$23.