Tokyo closes higher, Asia gives way


Japanese stocks held onto their morning strength, though Tokyo and Taiwan were virtually alone in mustering gains

Staff and wires

HONG KONG, China (CNN) -- Asian stocks closed generally lower Friday, despite a rise in Japan and morning gains across the region.

Taiwan also closed up, but off its peaks. The early rally gave way to afternoon selling through the region, leaving most markets in the red.

Hong Kong suffered the worst losses of the major markets, but Australia, New Zealand and Korea all ended down. Singapore is lower heading into the close.

Japan's tech-sensitive Nikkei 225 finished Friday up 0.54 percent to 9,867.45, having risen around 1.3 percent at lunch.

Sentiment warm in Japan

The broader capital-weighted Topix index closed up 0.24 percent at 963.28. Sentiment was generally warm, with overseas institutions buying into Japan's tentative recovery.

Toyota Motor, the country's biggest car company and one of its highest profile international brands, rose 2.2 percent to 3,020 yen.


Exports were up again in July, and the weaker yen is helping stock of major exporters like car companies

Rival Honda Motor Co. climbed 1.18 percent to 5,510 yen as the currency continues to ease pressure on big exporters.

The Japanese yen continued its run of weakness and now stands at 119.81 to the U.S. dollar in early European trade out of Frankfurt. Japanese exports rose again in July. (Full Story)

Chip-equipment maker Tokyo Electron raced up 7.97 percent to 6,230 yen on bullishness about U.S. chip stocks.

Japanese banks sold off, leaving UFJ Holdings down 2.87 percent at 271,000 yen.

Taiwan also locks in gains

Taiwan's Taiex was Asia's other major gainer, closing up 0.25 percent at 4,968.85. But it could not sustain morning momentum that saw it break through 5,000.

TSMC, the market leader, climbed 1.89 percent to T$54.00 after U.S. stocks rose overnight. But it bucked a fall in the Philadelphia Semiconductor index, typically a strong guide for Taiwan's techs.

The Dow finished Thursday at 9,053.64, up 1.08 percent. The Nasdaq composite added just under 1 percent to 1,422.95.(Full Story)

In Taipei, flat-screen maker Au Optronics was a gainer again, up 0.72 percent to T$28.00. Smaller competitor Chungwha Pictures rose 0.56 percent to T$17.80.

Chip-set maker Via Technologies fell 3.55 percent to T$68.00 ahead of earnings.

Chungwha Telecom closed flat at T$44.40, then said its first half profit rose 48 percent to T$25.1 billion.

Korean stocks off on tax fear

South Korea's Kospi ended down 0.7 percent at 740.51 with fixed-line telecom KT Corp. losing ground.

Hyundai Motor was off 3.09 percent to 34,500 won. Its affiliated parts maker Hyundai Mobis fared worse, down 3.96 percent to 26,550 won on worry an increase in excise taxes in September may eat into new-car demand.

Australia's benchmark S&P/ASX200 fell 0.35 percent for the day, to end at 3,184.5. News Corp. sagged 0.19 percent to A$10.79.

Qantas down after stock sale

But it was Qantas Airways that dominated trading, down 4.9 percent to A$4.46 after it issued stock at a 10 percent discount.

It was in a trading half for much of the week, ahead of its share offer at A$4.20 to institutions and retail investors. It also released earnings this week (Full Story).


Hong Kong stocks suffered the heaviest losses in Asia, though Cheung Kong lent property plays some pep

Woodside Petroleum fell 1.9 percent to A$13.47 as China's CNOOC said it will buy a 5 percent share in Australia's North West Shelf gas field, which Woodside manages.

In New Zealand, the Top 40 closed essentially flat, down 0.03 percent to 2,055.39. Telecom New Zealand gave up 1.19 percent to NZ$5.00.

Air New Zealand gained 1.54 percent to NZ$0.66 as it explores an alliance with Qantas.

Natural Gas Corp. lost 0.78 percent to NZ$1.27 but rose 10 percent this month, as it said it returned to profit.

Hutch lower in Hong Kong

In Hong Kong, the Hang Seng index closed down 1.71 percent at 10,245.69.

Property developer Cheung Kong Holdings added 0.43 percent to HK$58.50 after unveiling strong development sales for the first half of the year after the close Thursday.

That boosted other property companies such as Hang Lung Properties, up 0.61 percent to HK$8.15.

But Cheung Kong's sister company fared a separate fate. Port operator and telecom Hutchison Whampoa fell 0.9 percent to HK$55.25 after announcing it would pay $1.3 billion for Dutch drug-store chain Kruidvat Group (Full Story).

Bank heavyweight HSBC lost 1.75 percent to HK$89.25 on a day all but seven Hang Seng components ended down.

Singapore's Straits Times index is down 0.53 percent at 1,533.85 heading towards the close. It had ended the morning with a slight rise on the back of big caps such as bank stock DBS Group.

Datacraft Asia was lower after it said the Commercial Affairs Department is investigating the company.