Asian stocks dip after opening higher


Sony is higher on a report it will build a chip-assembly factory in China

By staff and wire reports

HONG KONG, China (CNN) -- Asian stocks opened higher on Monday, with Japan's Nikkei and Topix getting off to a positive start.

But Tokyo's Nikkei is giving back those gains and is now down 0.08 percent to 11,838.13 half an hour after the start of trade.

The broader market, as measured by the Topix index, is still higher, up 0.46 percent at 1,113.66.

Most Asia Pacific stock markets opened up, with New Zealand up more than half a percent. But Australian and South Korean markets are lower as the day moves on.

Hong Kong's markets are closed on Monday for a holiday in honor of Buddha's birthday.

Wall Street ended last week with a bullish bang, closing on solid gains for Friday and the week. The Nasdaq fired ahead 0.63 percent to 1,741.39, techs leading the way.

The Dow Jones industrial average rose a similar amount, up 0.62 percent to 10,353.08 (full U.S. roundup).

Economy looking better in Japan

In Tokyo trade on Monday, investors are buying into the theory that Japan's recession-mired economy is on the mend.


Japan's banks are reporting earnings later this week, and the central bank starts a two-day meeting Monday

Sony Corp. stock is up 0.83 percent to 7,320 yen in early going, after a report that the electronics maker plans to build a chip-assembly factory in China.

Sony is looking to finalize chip production close to an increasingly large market for its goods, the Nihon Keizai Shimbun said.

The yen is again stronger, breaking below 127 to the U.S. dollar. It stands at 126.09 in early morning trade in Tokyo.

That is hurting the stocks of major exporters such as Honda Motor Co. The car company's stock is down 0.68 percent at 5,810 yen.

The central Bank of Japan starts a two-day meeting of its policy board on Monday. There are no major economic figures for release, but Economics Minister Heizo Takenaka is due to hold his regular press conference.

Nissan off its high

Carmaker Nissan is seeing its stock trade lower, down 1.27 percent to 1,011 yen. The company is slated to release earnings later in the day and saw its stock hit a six-year high on Friday.

Sankyo Co. is down 0.99 percent to 1,908 yen. Japan's second-largest drug company is also posting its full-year results.

Furukawa Electric is also waiting to step up to the earnings plate. The fiber-optic maker's stock is off 0.49 percent at 612 yen shortly after the start of trade.

Japan's big banks are releasing earnings on Friday this week.

Australia dipping as day wears on

In Australia, the S&P/ASX 200 index is 0.42 percent lower at 3,398.3 in late morning trade, after opening higher.

News Corp., Sydney's largest stock, is proving a drag, down 1.4 percent to A$13.63 after running up last week following its earnings release.

New Zealand's main index, the Top 40, is up 0.44 percent to 2,093.97.

South Korea's main index, the Kospi, is also lower, down 0.26 percent to 872.79, with investors looking to see it test 900 soon.

But the index will likely trade between 860 and 900 this week, local analysts say.