Asia sees another slight selloff


Most Asian markets fell just over 1 percent, and Tokyo's Topix fell under 1,000 for the first time in three weeks

HONG KONG, China (CNN) -- Asian stocks lurched to a lower close on Tuesday. Chip gains failed to offset a general market decline.

South Korea's tech-fueled Kosdaq dropped more than 2 percent in Seoul. Hong Kong's GEM market fell 2.55 percent.

Both are the secondary markets in those cities. Other Asian markets closed uniformly lower, but they generally lost just over 1 percent.

Tokyo's Topix index fell 1.59 percent to 984.53. The Nikkei ended down 1.2 percent at 10,250.42. They broke for lunch with gains but then sold off banks and big caps.

Other main markets all down

Australia closed at its lowest level since last October. Markets in South Korea, Hong Kong, Taiwan and New Zealand all ended lower. Singapore is down just before the close.

Japan's market showed little reaction to the central Bank of Japan. Its policy board decided to leave monetary policy unchanged at Tuesday's meeting.

It was the first time the Topix, a measure of the broad market, had moved below 1000 for three weeks.

Banks off in Tokyo

Bank stocks drifted, with Mitsubishi-Tokyo Financial Group down 1.63 percent to 845,000 yen. SMBC and others were also off.


DoCoMo slumped to a 10-month low at 244,000 yen, with investors selling off telecom stocks in Japan and Korea

NTT DoCoMo continued its slide to a 10-month low. The cell-phone service dropped 4.7 percent to 244,000 yen.

Oracle Japan fell 1.63 percent to 4830 yen, as it reported a drop in both sales and profits for last business year.

Chips and chip equipment companies fared well. Testing-equipment maker Advantest rose 1.83 percent to 7240 yen after a rise in chip stocks hinted at better business ahead.

The yen is trading at 116.29 in late Hong Kong trade, little changed from Monday's rate.

Korea gives on won fears

In South Korea, the Kospi closed down 1.54 percent to 771.45. Steel maker POSCO fell 3.3 percent to 132,000 won.


Big exporters such as Hyundai and POSCO felt the bite of a stronger won during Tuesday's trade

The Korean won is at 1171.7 at the close in Seoul, slightly stronger than Monday. That hurt other exporters such as Hyundai Motor, down 2.4 percent to 32,700 won.

SK Telecom fell 2.9 percent to 265,000 won, with SK Group electing to sell off shares.

Taiwan's Taiex closed down 1.39 percent at 5,318.01. Flat-screen maker AU Optronics closed down 2.48 percent at T$35.40.

The index unusually broke with Wall Street, where Nasdaq put in a solid rise on Monday.

The Dow sold off heavily in early Monday trade, then staged a dramatic late comeback. The tech-weighted Nasdaq ended 0.66 percent higher at 1382.62 (full U.S. roundup).

Australia at nine-month low

The Australian market started down and closed there. It dropped 0.93 percent to 3,157.7, its lowest in nine months.

News Corp. fell 1.1 percent to A$10.00. But it has typically moved to U.S. patterns. Australian stocks got little support from its traditional bastions.

In mining, BHP Billiton fell 3.4 percent to A$9.61. Its BHP Steel unit started trading separately on Monday (full story).

WMC fell 6.7 percent to A$8.20 after warning of production cutbacks at its Olympic Dam copper smelter (full story).

Macquarie Bank fell 5 percent ot A26.06 on sentiment it overpaid for Sydney Airport. The bank has now lined up a deal for Rome airport (full story).

ANZ Bank fell 1 percent to A$19.01.

Across the Tasman, New Zealand's Top 40 closed down 0.35 percent at 2057.31.

Hong Kong banks down

Hong Kong's Hang Seng index lost 1.51 percent to end at 10,421.49.

Cheung Kong Holdings dropped 3.01 percent to HK$64.25 after taking its CK Life affliliate public.

Chairman Victor Li, son of tycoon Li Ka-shing, saw his company end its first day's trade at HK$2.15, up 7.5 percent.

Bank stock HSBC fell 1.14 percent to HK$87.00. Bank of East Asia, Hong Kong's third-largest bank, closed down 0.96 percent at HK$15.55.

Bank of China Hong Kong has won a court decision, with its Beijing-based parent, that should help toward its IPO on July 25 (full story).

Singapore's Straits Times index is down 1.32 percent at 1,588.44 in late trade.