Tokyo stocks buck Asia's uptrend


Japan's Topix index dropped for the first time in five days but a key bank player rose on increased loans.

staff and wire reports

HONG KONG, China (CNN) -- Asian stocks generally rose again on Thursday. But Tokyo broke ranks, selling off for the first time in five days.

The market, as measured by the Topix index of all Section 1 stocks, fell 1.04 percent to 1033.31.

The Nikkei 225 average dropped 1.66 percent to 10,632.81, reflecting the greater impact from electronics stocks like Sony.

Trading house Mitsui Corp. fell 1.82 percent to 810 yen after the arrest of three executives over a bid-ridding scandal on a power project (full story).

Mitsubishi Tokyo Financial Group climbed 2.55 percent to 885,000 yen. It plans to step up its loan program (full story).

JT shutting plants in Japan


Exporters are feeling currency pressure, leading the central Bank of Korea to leave rates as they are

Japan Tobacco edged 0.12 percent higher to 822,000 yen ahead of word it will close eight factories in Japan by March 2005.

Sony gave up 3.2 percent to 7190 yen. The consumer electronics maker is one of Japan's key exporters and has lost ground as the yen has strengthened against the dollar.

The yen stands at 120.17 to the U.S. dollar in early trade out of Paris. It was little changed in the Asian trading day.

Traders are still watching for intervention from the Bank of Japan, with the central bank governor telling parliament that sudden currency moves are a danger to the economy.

The Korean won strengthened slightly to 1200.5 to the U.S. dollar at the close in Seoul.

Korea up on techs

The central Bank of Korea raised its forecast for Asia's strongest developed economy (full story). But it left interest rates unchanged, as expected.

Korea's Kospi index closed up 2.04 percent at 768.74 after the announcements. Samsung Electronics again drew heavy domestic and international interest.

The chip and electronics company climbed 3.55 percent to 350,000 won.

Seoul-based rival LG Electronics fell 2.1 percent to 49,250 won a day after confirmation it has a deal with retailer Aeon of Japan to sell its liquid-crystal monitors there.

Aeon fell 1.2 percent to 3350 yen. But its group got a boost out of drug-store chain Tsuruha, up 6.25 percent to 2380 yen after record sales (full story).

In Korea, steel company POSCO climbed 5 percent to 136,500 won on a Moody's upgrade.

Taiwan ahead for third straight day


U.S. markets are closed for the July 4 holiday but rose solidly on July 3.

Taiwan stocks also climbed, for the third straight day. The Taiex ended up 1.64 percent to 5130.80.

Bank stocks, the Taiwan market's second-most significant sector, climbed 0.52 percent.

Tech shares in general took heart from a break in Nasdaq's slide in the United States (full U.S. roundup). U.S. markets are closed Thursday for the July 4 holiday.

Flat-screen maker AU Optronics climbed 3.74 percent to T$30.50.

Taiwanese chip designer Via Technologies dropped 2.05 percent to T$71.50 after reporting a drop in sales.

Sydney gets News lift

In Sydney, the S&P/ASX 200 index climbed 0.72 percent to 3208.7. Media mogul Rupert Murdoch's News Corp. ran up 7.8 percent to A$10.35.

It has sold off 34 percent this year on the poor U.S. economy.

Insurance company AMP rose 3.8 percent to A$16.05 after confirming a small investment loss for the second half of the business year, through June.

New Zealand's Top 40 fell 0.42 percent to 2054.21. Telecom New Zealand dropped 1.2 percent to NZ$4.95.

In Hong Kong, the Hang Seng index closed up 1.76 percent at 10,765.58.

U.S.-oriented plays gained good ground after Wall Street broke its string of losses. Li & Fung climbed 5.83 percent to HK$10.95. Johnson Electric lifted 5.03 percent to HK$9.40.

The biggest stock on the market, bank HSBC, rose 0.56 percent to HK$89.75, gaining some lost ground traced to Latin American concerns.

Singapore's Straits Times index is up 0.69 percent at 1594.04 heading towards the close.