Tokyo opens lower as Asia drifts


Chip-equipment makers are lower in Tokyo but drug stocks are seeing strong moves higher on the promise of better profits

HONG KONG, China (CNN) -- Asian stocks are generally lower soon after the open on Wednesday morning.

Tokyo's Nikkei index is down 1.13 percent at 10,836.50 in mid-morning trade. Chip-equipment makers are dragging that tech-oriented index lower.

The Topix is down 0.65 percent at 1,043.31.

Tokyo Electron is off 3.79 percent at 7,360. Advantest is down 3.38 percent at 7,440 yen.

Generic drug stocks are giving the market a shot in the arm with sizeable gains. Sawai Pharmaceuticals is up 7.98 percent at 2,300 yen on a report it will likely post record leaps in profit this year.

Yen move below 117 'not favorable'

The yen strengthened below 118 overnight. But it is slightly weaker again in Asian trade on Wednesday, at 118.12 to the U.S. dollar.

"It is not a favorable situation," Zembei Mizoguchi, head of the Finance Ministry's international division, said of the 117 level. "We will take appropriate action if needed."

South Korea's Kospi is down 1.1 percent at 793.05, with large caps and tech shares sliding. But the won is steady at 1,181.3 to the U.S. dollar.

Australia's market is also lower, the S&P/ASX 200 index off 0.72 percent at 3,234.8. Mining stocks are off, as is News Corp., down 2.4 percent at A$10.55.

U.S. stocks gave ground on Tuesday, with the Dow down 1.93 percent and Nasdaq off 1.74 percent (U.S. roundup).