Asian markets fall on Japan production data


Japan's production increased in April but less than expected, with another rise expected for May and a dip in June

staff and wire reports

HONG KONG, China (CNN) -- Asian stock markets fell on Wednesday, with April's industrial production figures hurting the market in Japan.

The Nikkei index fell 0.7 percent to 11,853.00, with the broader market, as measured by the Topix index, down 0.48 percent to 1125.75.

Other markets in Asia were broadly down, with Australia, Hong Kong, South Korea and Taiwan all posting losses.

Singapore is down more than 1 percent heading towards the bell. New Zealand and Indonesia were some of the smaller markets that posted gains.

In India, stocks are lower amid the continuing tension. But Pakistan's stock market is trading up 0.48 percent, one day after it fell following the test of a third missile there.

Data not as good as predicted

In Japan, the market took a hit from the production figures for April, which were up but weaker than anticipated (full story).


Japan's economy shows signs of turning around, drawing overseas investors back to a market they all but abandoned

Month over month, production rose 0.2 percent, however, and the ministry that puts out the data is predicting a large increase for May, followed by a drop in June.

Japan and South Korea are both preparing for the World Cup, due to start on Friday. Investors have already bid up stocks in select industries, particularly service companies such as travel agents and hotels.

On Wednesday, the production figures discouraged holders of major exporters.

Electronics producer Sony Corp. fell 1.0 percent to 7210 yen, with chipmaker NEC down 1.6 percent to 949 yen.

Bucking the downtrend was Nikon, up 5.0 percent to 1501 yen after saying it plans to sell convertible bonds. MTFG, one of the big four banks, jumped 1.76 percent to 985,000 yen. Telco KDDI was also higher, up 1.45 percent to 419,000 yen.

International interest still strong

Investors said overseas interest in Japanese stocks, recently rekindled, is still fairly strong. The yen remained stable at 124.52 as trade switched to Europe.

South Korea's Kospi index fell sharply on heavy computerized selling. The Kospi finished down 1.6 percent at 835.19, but it pared the drop into the closing bell.

That hit market leaders such as Samsung Electronics, Seoul's biggest stock by market capitalization.

Samsung fell 2.03 percent to 362,000 won, with carmaker Hyundai Motor Co. down 2.2 percent to 41,800 won.

The Korean won, which hit a 17-month strong point against the U.S. currency on Monday, is trading at 1,238.0 to the dollar.

Taiwan off on techs

In Taiwan, the Taiex slumped 0.82 percent to end at 5623.23. The key tech share index was down after Nasdaq dropped 0.56 percent in U.S. trade on Tuesday.

In Taipei, chip foundries Taiwan Semiconductor Manufacturing Co. and United Microelectronics Corp. closed lower, down 0.58 percent and 1.50 percent respectively.

China Airlines ended "limit down" for the third straight day, hitting the 7 percent barrier for a one-day drop after its flight to Hong Kong crashed on Saturday.

Uncertainties surrounding the crash will likely continue to weigh on the stock, industry watchers say (full story).

Sydney lower as dollar priced in

In Sydney, the S&P/ASX 200 index ended 0.14 percent lower at 3381.2. A strong Australian dollar depressed shares in domestically-oriented companies.

AurionGold rose 3.7 percent to A$4.77, continuing a run produced by a hostile stock bid from Canadian-based Placer Dome, which now values the company at A$4.44.

Direction was a little lacking in the broader market, with most stocks moving purely on company-specific issues.

New Zealand's Top 40 index rose 0.9 percent to 2122.81. The second-largest listing in Wellington, Carter Holt Harvey, again gained ground after last week's rise.

Unicom weighs Hong Kong

In Hong Kong, the Hang Seng index closed down 1.3 percent at 11,430.66. Big-cap stocks led the selling.

China's second-largest cell-phone company, China Unicom, fell 1.36 percent to HK$7.25 on doubts about its ability to recoup the cost of its high-quality CDMA network.

Bank stock HSBC fell 1.81 percent to HK$94.75.

In Singapore, the Straits Times index stands at 1687.86 in late trade, off 1.22 percent coming up to the close.

The Bombay Stock Exchange 30-share index is down 0.06 percent as the standoff with Pakistan over Kashmir continues.

But the Karachi market is up 0.48 percent in early afternoon.

Reuters contributed to this report.