Asian markets down on tech decline


Japanese banks are under pressure ahead of the results of the FSA's bank inspection

HONG KONG, China -- Asian markets are lower heading into afternoon trade on Friday, with high-tech shares tracking Wall Street's sharp decline.

In Tokyo, banks and high-tech shares are leading the losses, as Nasdaq's overnight slump and the pending results of inspections by the bank watchdog weighed on investor confidence.

The benchmark Nikkei average ended the morning down 0.71 percent, at 11,067.91, and was underwater to the tune of 1.04 percent as the afternoon session set off.

The broad Topix index broke for lunch off 0.90 percent, to 1,059.45.

In other markets, Australia, Taiwan, Singapore and Hong Kong all tracked Wall Street's weakness. But South Korea bucked the down trend, proving a pillar of Asian strength again with gains in financials and steel companies.

Japan banks being watched

U.S. stocks tumbled on Thursday as investors grappled with disappointing financial results from heavyweight General Electric Co., and concerns over the quality of accounting methods in American firms.

The Dow Jones Industrial Average lost 1.98 percent to 10,176.08, while the tech-packed Nasdaq tumbled 2.37 percent to 1,725.24.

Japanese banks slipped due to investor caution ahead of the results of the Financial Services Agency's inspection on banks.

Mizuho Holdings, the world's largest bank by assets, lost 1.92 percent to 306,000 yen, while Sumitomo Mitsui Banking Corp., another of the "Big Four," fell 2.07 percent to 568 yen.

In the high-tech sector, electronics giant Sony declined 1.61 percent to 6,710 yen. Specialty chipmaker Kyocera fell 1.64 percent to 8,410 yen.

Korea bucks Wall Street effect

In South Korea, shares were slightly firmer by midday as gains in financials and steel companies offset the weakening influence of Wall Street

The benchmark Kospi was up 1.33 percent, or 11.44 points, at 874.30. But the tech and Nasdaq-driven Kosdaq fell 0.54 percent to 84.15.

Steel giant POSCO rose 1.8 percent to 142,500 won ahead of its earnings announcement later in the day.

Korea's top retail lender Kookmin Bank gained 2.3 percent to 56,900 won, and regional bank Jeonbuk Bank added 2.3 percent to 4,470 won.

Chip titan Samsung Electronics added 500 won to 360,000 won after it said it was considering raising its investment in memory business, amid signs that the semiconductor sector may be picking up.

MSCI

Australian stocks dropped in afternoon trade with sentiment undermined by Wall Street's decline. The benchmark S&P/ASX 200 is down 0.38 percent at 3,354.7 in late trade.

Media giant News Corp. lost 1.5 percent to A$12.52 on rumors it would buy assets of ailing Kirch Group. Dominant telecom Telstra Corp. eased 0.4 percent to A$5.25.

Both stocks will be included in the Morgan Stanley Capital International indexes, due for a reweighting later on Friday.

Resources giant BHP Billiton lost 1 percent to A$11.51.

In Taiwan, stocks fell slightly at midday after Wall Street's tumble, but the addition of AU Optronics to the MSCI index helped offset losses.

The benchmark Taiex index eased 0.08 percent, or 5.09 points, at 6,068.67.

AU Optronics rose 3.96 percent to T$52.50, but Taiwan Semiconductor Manufacturing Co. was down 1.11 percent to T$89.

Tech slump

Singapore shares opened sharply lower on Nasdaq's slump, but the main index recovered from lows as blue chips on hopes of better earnings from tax relief.

The key Straits Times Index was down 0.30 percent, or 5.29 points, at 1,735.29.

Electronics contract maker Venture Manufacturing slipped 1.2 percent to S$17.10, and Chartered Semiconductor Manufacturing dropped 1.73 percent to S$4.54.

DBS Group Holdings fell 1.43 percent to S$13.80, but Singapore Press Holdings added 1.3 percent S$23.60 in hopes of a tax reduction.

A government panel on Thursday proposed reductions in the top rates of corporate tax and personal tax, to 20 percent within three years.

In Hong Kong, stocks fell in morning trade after Wall Street dampened confidence in the territory's exports.

The benchmark Hang Seng Index was down 0.68 percent at 10,671.83 just before noon.

Micro motor maker Johnson Electric fell 2.79 percent to HK$10.45.