Tokyo joins rest of Asia in selloff


Toyota is lower, with selling from institutions and feeling the effect of a slightly stronger yen

HONG KONG, China -- Asian markets are drifting lower heading into afternoon trade on Tuesday, with Japan setting the selling pace.

Most Asian markets opened higher but have followed Japan into the red. The markets are up only in the smaller markets of New Zealand, China and Thailand.

These are the first losses after five days of gains in Tokyo. The Nikkei 225 average closed down 1.15 percent at 9,952.29 after morning trade, and is 1.18 percent lower soon after the start of the afternoon session.

The Topix index ended the morning down 1.53 percent to 966.25, hit hard by selling in the bank sector. It is steady, down 1.52 percent, as p.m. trade starts.

Banks hurting the Topix

Toyota Corp., a favorite of large shareholders, is down 1.29 percent to 3,050 yen.


Japan's Big Banks are leading the Topix down more than the Nikkei, as Japan sells off for the first time in six days

Most chipmakers are lower, with Toshiba Corp. off 4.25 percent to 428 yen after two brokerage downgrades on the sector. NEC is 1.45 percent lower at 681 yen.

But Fujitsu Ltd. is 0.45 percent higher to 664 yen after Goldman Sachs reiterated its "market outperform" rating.

The "Big Four" banks are down, with Mitsubishi Financial Group off 1.92 percent to 816,000 yen. Mizuho Holdings ended the morning off 1.92 percent at 256,000 yen but is trimming those losses in afternoon trade.

The yen is a little stronger at 119.05 to the U.S. dollar.

Morning gains give way

Most Asia Pacific market started the day on gains, after a strong showing from Wall Street overnight.

Surprisingly brisk housing sales gave the U.S. market a jolt (full story). That left the Dow Jones industrial average up 0.52 percent, with Nasdaq ahead 0.81 percent (full roundup).

That is still propelling the New Zealand market higher. The Top 40 is up 0.38 percent to 2,057.23 on a quiet day's trade.

Sky City Entertainment has hit an all-time high of NZ$6.70, up 1.51 percent after posting net earnings of NZ$57.2 million for the year.

Telecom New Zealand is steady at NZ$4.94. Air New Zealand is 1.56 percent lower ahead of earnings on Wednesday.

Australia's market has succumbed in early afternoon, leaving the S&P/ASX 200 index 0.03 percent lower at 3,175.8.

Banks are lower after the Reserve Bank of Australia gave a credit-card ruling that will cut into bank income.

Drinks company Foster's is up 0.8 percent to A$4.91 after posting a 21 percent increase in profit for the year.

Taiwan electronics stocks off

But by late morning, Taiwan has given up its early gains, and the Taiex is down 0.69 percent at 4,901.95.

The electronics index is lower in a bouncy day's trade. Nanya Technologies is off after cutting its forecasts earlier this month.

The Korean market sold off with Tokyo, leaving the Kospi down 0.98 percent at 727.60 in early afternoon.

SK Telecom fell 1.91 percent to 230,500 won in early going, with investors figuring in possible cuts in mobile-phone rates.

Steelmaker POSCO is also down, off 1.76 percent to 111,500 won. Samsung Electronics is 1.03 percent lower at 337,000 won, though it is still buying back its own stock.

China Eastern sinks on results

Hong Kong's Hang Seng is off 0.5 percent at 10,175.29, with China Eastern off 6.8 percent at HK$1.09 after posting a 64 percent drop in earnings the day before.

Hong Kong's U.S.-oriented plays, Li & Fung and Johnson Electric, are both also lower, despite strong export growth figures released on Monday (full story).

Singapore's Straits Times index is down 0.75 percent at 1,504.68, despite a rise in Creative Technology and select other techs. Volume is thin.