Asian exporters stall on weak U.S. growth


Like the rest of Asia, Japan's markets were trying to process sluggish growth out of the United States

HONG KONG, China -- Asian stocks started August with a slip on Thursday, with only a few smaller markets ending higher.

Japan's Topix fell 0.66 percent to 958.59, while the Nikkei gave up 0.85 percent to finish at 9,793.51.

Asian markets faced an uphill day's trade, after figures showed the U.S. economy lost its recovery momentum in the second quarter, growing just 1.1 percent.

That was well below the consensus forecast of 2.3 percent (Full Story).

Though Asian markets have increasingly shown a life of their own in 2002, many export-driven countries in the region still look to the United States as one of their largest markets.

Taiwan resists worst selling

That pessimistic tone depressed Korean stocks, The Kospi dropped almost 1.5 percent. Hong Kong, with a currency pegged to the U.S. dollar and tight trade ties, dropped more than 0.75 percent.

Taiwan resisted the heaviest selling, the Taiex falling less than half a percent. Australia closed off about 0.3 percent.

The selling pressure was generally restrained, and New Zealand and China locked in gains. Singapore is also trading higher heading into the close.

In Tokyo, high-tech stocks sold off as U.S. investors continue to withdraw from the market. Toshiba Corp. dropped 4.67 percent to 429 yen. Hitachi ended off 2.75 percent at 671 yen.

Investors were also reacting to earnings from Matsushita Electric Industrial released after the bell on Wednesday. It ended flat at 1,487 yen.

Honda lower despite profits

Honda Motor Co. dropped 1.81 percent to 4,890 yen, another fall despite its record results earlier this week.


Japan's stock markets saw large net sales by overseas investors in the last week of July, weakening the yen

The yen is a little weaker against the dollar, following this week's pattern. It stands at 119.75 in early trade out of London.

Fresh data out of Japan's finance ministry showed overseas investors became net sellers of Japanese stock for July, for the first time since February. That would weaken the yen and strengthen the dollar (full story).

The Korean won is stronger at 1,182.8 against the dollar at the close of Seoul trade. That generated further selling pressure for companies that look overseas for sales.

Korean stocks lost steam from the open, and the Kospi closed down 1.42 percent at 707.80.

Samsung, exporters off in Seoul

Chip titan Samsung Electronics ended down 2.4 percent at 324,500 won. Korea's largest car company, Hyundai Motor, drifted 2.3 percent to 34,550 won.

Kia Motors also lost ground, falling 2.4 percent to 10,300 won after saying sales fell in July due to strikes.

Fixed-line telephone company KT Corp. bucked the downward trend with a gain of 0.8 percent to 44,200 won. It posted strong earnings for the first half of the year (Full Story).

Taiwan held up by banks

In Taiwan, the Taiex ended trading, down 0.48 percent at 4,916.59. The index stayed in a narrow band all day.

TSMC, the largest listing, dropped 1 percent to T$50.00, knocked by a decline in client Nvidia in the United States.

Memory chipmaker Nanya Tech fell 0.93 percent to T$31.80, as the island's tech exporters felt the reassessment of the U.S. recovery.

But bank stocks offset the selling pressure. Rubber companies gained after Taiwan's government said local companies would be allowed to invest directly in China, starting on Friday.

Despite the losses, Taiwan still outperformed Nasdaq in the United States. It closed down 1.19 percent. The Dow ended 0.65 percent higher (Full U.S. roundup).

Australian big caps sell off

In Australia, the benchmark S&P/ASX200 ended down 0.29 percent at 3,077.3. Most big caps drifted, with News Corp. down 0.65 percent at A$9.12.

Telstra, the second largest listing, ended off 0.62 percent at A$4.78. Mining company BHP Billiton dropped 2 percent to A$9.34.

Those losses were offset by bank stocks, which generally rose. National Australia Bank outran the pack with a 1.8 percent gain to A$34.02.

The market was warming to the prospect it may have abandoned its courtship of Britain's Abbey National.

Bionic-ear maker Cochlear fell 1.4 percent to A$36.95 after strong gains earlier in the week.

New Zealand's Top 40 broke from most other Asia Pacific markets to end up 0.18 percent at 1,989.55.

Telecom New Zealand rose 0.84 percent to NZ$4.75. Carter Holt Harvey gained 1.1 percent to NZ$1.86.

Banks lower in Hong Kong

In Hong Kong, the Hang Seng index finished down 0.85 percent at 10,180.02.

Bank of East Asia, the fifth-largest bank, closed down 1.33 percent at HK$14.85 after reporting earnings.

The city's largest financial institution and stock, HSBC, fell 1.13 percent to HK$87.50. Bank of China Hong Kong ended flat at HK$8.45 but is still below the price of its recent IPO.

Trading house Li & Fung dropped 3.2 percent to HK$9.05 percent, while small-motor maker Johnson Electric closed off 2.4 percent at HK$8.05. Both export heavily to the United States.

Singapore's Straits Times index is up 0.16 percent at 1,510.70 near the close. Electronics-waste recycler and recent IPO Citiraya Industries set the market alight with a 22 percent morning leap.

Creative Technology and Chartered Semiconductor were also trading higher in early afternoon.