Asian markets mostly lower


Australia's gold rush is dissipating on Thursday, after bullion rose to levels it hasn't seen in almost five years

By staff and wire reports

HONG KONG, China -- Asian markets are mostly lower heading into Thursday afternoon, with Tokyo down more than 1 percent.

Uncertainty is weighing on the markets following Wall Street's weakness on Wednesday, triggered selling in blue chips. But several markets, notably Australia and Taiwan, are up.

In Tokyo, the Nikkei average shed 1.07 percent to stand at 11,726.31 by midday, while the Topix index gave up 0.93 percent to 1,115.27.

In South Korea, the main Kospi index is down 2.03 percent at 818.20 in early afternoon.

Mining and bargains moving up

In other markets, Singapore and Hong Kong are lower. But Australia, New Zealand and Taiwan are moving higher on bargain hunting and mining shares.

The Jakarta market, one of the world's top performers in 2002, is up despite a report that a key privatization sale has failed (full story). Indonesia says a decision has not yet been reached.

On Wednesday in the United States, tepid results pushed the Dow Jones industrial average down 0.59 percent to 9.923.04. Nasdaq lost 1.68 percent to 1,624.39. (full U.S. roundup).

NTT DoCoMo

In morning trade in Japan, investors gave up shares in NTT DoCoMo and other blue chip shares after Wall Street's fall hurt sentiment.

Dominant mobile-phone operator NTT DoCoMo dipped 2.16 percent to 317,000 yen. Tokyo Electron Ltd., Japan's largest maker of chipmaking equipment, slipped 1.51 percent to 8,480 yen.

Electronics giant Sony Corp. lost 1.53 percent to 7,100 yen, while specialty circuits maker Kyocera Corp. lost 0.71 percent to 9,760 yen.

In the auto sector, carmaker Toyota Motor fell 0.86 percent at 5,450 yen, while Honda Motor lost 1.27 percent to 5,450 yen.

Banks mixed with Mizuho up again

UFJ Holdings lost 1.43 percent at 345,000 yen, but Mizuho Holdings added 0.67 percent to 299,000 yen.

In South Korea, share continued to edge lower on steady computerized selling, pulling down index heavyweights SK Telecom and Samsung Electronics.

SK Telecom Co., South Korea's top mobile carrier, tumbled 3.97 percent to 278,000 won. Samsung Electronics Co., the world's largest memory chipmaker, slipped 0.83 percent to 359,000 won.

Bucking the trend, South Korea's largest lender Kookmin Bank rose 1.96 percent to 66,200 won.

Gold's speculative rally

Australian shares are moving higher, despite the heat dissipating from the gold sector's speculative rally.

The benchmark S&P/ASX 200 index is up 0.2 percent at 3,388.0 in early afternoon.

Gold stocks edged away from this week's highs in morning trade, despite a near five-year high for bullion overnight. It fixed in London at $327.05 a troy ounce, but later slipped in New York.

Australian gold stocks surged this week due Placer Dome Inc.'s bid for AurionGold. But AurionGold shares shed 14 cents, or 2.9 percent, to A$4.63, after Placer Dome fell 2.8 percent to $13.84 in the United States.

Mining giants BHP Billiton and Rio Tinto edged higher, up 0.4 percent at A$10.94 and 0.3 percent at A$35.45 respectively.

Bargain-hunting

Taiwan stocks are powering higher, as bargain-hunters move in on financial stocks. The main Taiex share index us up 0.69 percent at 5,661.85.

First Commercial Bank, one of Taiwan's largest commercial banks, surged the seven percent daily trading limit with a T$1.70 gain to T$26.99.

Embattled carrier China Airlines is arresting its run of "limit down" plunges but is still 3.40 percent lower at T$12.75.

In Singapore, the Straits Times Index is down 0.21 percent at 1,680.96, hit by banks and techs.

Bank DBS Group Holdings lost 1.4 percent to S$14.20.

In Hong Kong, stocks are also lower after the market broke out of its 11,500 to 12,000 support on Wednesday.

The Hang Seng Index slipped 1.13 percent to 11,301.58 just before noon.

Star Cruises, the world's fourth largest cruise line, plunged 9.72 percent to HK$3.25 after announcing it would raise HK$603.3 million ($77.35 million) by selling stock at HK$3.30 apiece.

Foods-to-telecom conglomerate First Pacific rose 2.88 percent at HK$1.43 after it said it is in talks with an independent investor over its interests in the Philippines.