Asian stocks start week in quiet style


Japan's market was reacting to bank earnings from Friday, sending most lower, and a quiet yen

HONG KONG, China -- Asian stocks had a quiet Monday, with Tokyo's Nikkei index squeezing into the black at the close.

But the broader market fell, with bank stocks weighing down the Topix index after they reported earnings after the close on Friday.

The Topix ended down 0.66 percent at 1,131.93, while the tech-oriented Nikkei posted a 0.07 point gain, leaving it flat at 11,976.35.

Uncertainty in India and Pakistan continues to weigh on investors there.

Speech in Pakistan

In India, the main Mumbai index is down 0.1 percent after a rise on Friday.

In Karachi, investors are watching for direction from a speech by Pakistan's President, Pervez Musharraf, slated to address the nation Monday night.

Most Asian markets outside Japan were lower, with South Korea down more than 1.6 percent. Australia, New Zealand and Hong Kong also fell.

But Taiwan posted a gain despite the crash of a plane from China Airlines, the national carrier, over the weekend.

Markets in Malaysia, Singapore and Thailand were closed for holidays on Monday, with U.S. markets closed for Memorial Day.

Banks lower in Japan


Japan's economy shows signs of recovery but bank reforms are still regarded as key to long-term hopes

In Tokyo, the Nikkei ended virtually unchanged, up 0.07 of a point to 11,976.35.

Three of the four largest banks ended lower, after posting huge losses on Friday. UFJ Holdings suffered the most, off 5.3 percent to 357,000 yen, after a ratings cut (full story).

But stock in Mizuho Holdings, the largest bank in Japan, rose 0.33 percent to 302,000 yen.

The big banks are forecasting profits for this business year, which some industry watchers say shows unwillingness to tackle bad loans.

NEC down on plant closures

Chipmaker NEC Corp. saw its stock fall 0.71 percent to 980 yen, as it said it plans to shut down its personal-computer plants in Malaysia and Scotland.

Retail sales fell 2.0 percent in Japan for April, year over year, fresh figures showed. That was the 13th month in a row, with deflation firmly entrenched.

The yen traded in a very tight range on Monday, standing at 124.85 as European trade started up. There was word Japan's finance ministry is still watching the rate, but little activity with Singapore and New York closed.

In Taiwan, the stock of China Airlines fell to T$15.20, hitting the daily 7 percent limit for a one-day move.

China Airlines down the limit

China Airlines Flight 611 vanished from radar on Saturday afternoon, with all 225 aboard feared dead. The crash is a setback for China Airlines' revamp (story on insurance).

But the broader Taiwan market moved north on gains in bank stocks. China Airlines' main rival, Eva Airlines, rose the daily 7 percent limit to T$13.45.

In South Korea, the benchmark Kospi closed down 1.64 percent at 840.57, with heavy program selling from overseas buyers.

Fund favorite Samsung Electronics ended off 1.23 percent to 361,500 won, with cell-phone carrier SK Telecom also down.

Ssangyong Motor Co. shot up the daily 15 percent limit in Korea after PSA Peugeot Citroen toured the small car company's plants last week. That raised the prospect of an overseas sale.

Australia lower on listless day

Australia's benchmark S&P/ASX200 dropped 0.16 percent to 3,381.6, with the market showing lackluster trade.

Gold stocks were the only active sector of the market, with AurionGold up 30.2 percent to A$4.53. It received an unsolicited bid from Placer Dome of Canada.

New Zealand's Top 40 fell 0.4 percent to 2,098.37, with big-cap stocks generally lower in slow trade.

Hong Kong also down

Hong Kong's Hang Seng index closed down 0.53 percent at 11,564.73, with trade light ahead of the U.S. holiday.

China Mobile fell 0.97 percent after China Everbright said it was considering selling the rest of its stake in the cell phone company.

In Karachi, buyers are snapping up larger companies, with tensions defusing between Pakistan and India. But India's market was jittery ahead of the Pakistani leader's speech (full story).