Asia's positive week ends with a slump


Japan and Korea produced strong gains for much of the week, but couldn't resist the pressure from the U.S. selloff

By Alex Frew McMillan

HONG KONG, China (CNN) -- Equities in Asia ended a generally strong week with a slump on Friday, Japan finishing down around 1.5 percent.

South Korea saw the strongest selling, giving up 2.85 percent as two days of large gains crunched to a halt.

Hong Kong approached that mark, too, the U.S.-leaning market feeling the brunt of a Wall Street selloff from Thursday.

But there were negatives in almost every column around Asia, Taiwan losing almost 1.5 percent. Singapore is trading down 1 percent heading toward the close.

Australia and New Zealand both lost around a third of a percent. Only the small markets in the Philippines and Sri Lanka are in positive territory.

End to the gains in Tokyo

In Tokyo, the Nikkei came back from its heaviest losses but still ended down 1.84 percent at 9,241.93.

The Topix dropped 1.33 percent to 908.41. That saw an end to a four-day winning streak for Japanese stocks.


DoCoMo sank to its lowest in more than three years, with investors doubting its growth prospects

Fixed-line telecom NTT fell 2.88 percent, with cell-phone subsidiary NTT DoCoMo shedding 4.35 percent to 220,000 yen, its lowest since 1999.

Sony Corp. ended off 3.77 percent at 5,110 yen, with jobs data suggesting weakness in the United States, a major market.

Fujitsu Ltd. closed down 4.87 percent at 567 yen, after reaching a nine-year low during the day. The company said it will cost 2.4 billion yen ($20 million) to recall defective hard drives.

Around 2 to 3 percent of the hard drives it has made since September 2000 are defective, the company said. But the recall will not affect forecasts, it said.

Chips lower in Tokyo

Chip and computer stocks were also generally lower, NEC losing 3.53 percent to 601 yen, circuit-maker Kyocera Corp. giving up 3.28 percent to 8,250 yen, and Mitsubishi Electric, closing down 3.69 percent to 392 yen.


Exporters had enjoyed relief from a weaker yen earlier in the week, but the currency steadied on Friday

Car stocks fell, Honda Motor chipping off 3.0 percent to 4,850 yen and Toyota also losing ground.

The yen was giving exporters no help, stopping its weakening run at 119.90 to the U.S. dollar in early European trade.

Defensive play Japan Tobacco was one of the few gainers, up 0.25 percent to 818,000 yen.

Asian equities came under pressure from the open, after Wall Street sold off on Thursday. The Dow Jones industrial average closed down 2.35 percent, with Nasdaq falling 2.72 percent. (Full roundup)

U.S. Federal Reserve Chairman Alan Greenspan warned U.S. interest rates would rise if the government returns to an era of deficit spending. (Full story)

Korea off on U.S. pressure

In Seoul, the Kospi ended down 2.85 percent at 718.17, little changed in afternoon trading.

Fixed-line phone company KT Corp. fell 4.38 percent to 52,400 won despite buying back 150,000 shares at a premium.

Hana Bank finished 2.1 percent lower at 18,350 won, after the government voted to approve its purchase of SeoulBank. That's Korea's largest bank privatization to date. (Full story)

Samsung Electronics dropped 3.35 percent to 331,500 won. The company announced a $400 million CDMA phone sale deal to China Unicom. ( Full Story)

Hynix Semiconductor rose 3.8 percent to 540 won, topping the volume charts.

Taiwan propped by motherboards

In Taipei, the Taiex finished down 1.45 percent at 4,580.17, a third straight day of losses.

TSMC fell 3.61 percent, after a 3.61 percent drop in the Philadelphia Semiconductor index in the United States.

Computer-motherboard makers propped the market, with demand looking strong for September.

Asustek Computer, the largest company in Taiwan's motherboard industry, gained 1.88 percent to T$81.50.

Gold higher in Australia

Australia's S&P/ASX 200 index lost 0.37 percent for the day to settle at 3,130.6.

News Corp. finished down 2.7 percent to A$9.54, with other big names experiencing similar weakness.

Mining stocks BHP Billiton and Rio Tinto both declined 0.7 percent, to A$31.95 and A$9.33 respectively.

George W. Bush's bellicose stance on Iraq before the United Nations prompted investors to buy gold stocks.

Newcrest Mining picked up 4.4 percent to A$7.10, takeover target AurionGold up 4.0 percent at A$3.66.

In Wellington, the New Zealand Top 40 finished down 0.26 percent at 2,040.86. Telecom New Zealand fell 1.20 percent to NZ$4.92.

Takeover target UnitedNetworks, subject of a NZ$9.90 bid from Vector Ltd, climbed 0.2 percent to NZ$9.82.

Hong Kong telecoms down

Hong Kong's Hang Seng is off 2.48 percent at 9,650.97 at the closing bell.

Most of the Hang Seng components were down, Sun Hung Kai Properties leading the real-estate selling with a 3.96 percent fall to HK$48.40.

Mainland cell-phone No. 2 China Unicom fell 4.5 percent to HK$5.30, as market talk said its coming China A-share offer may be trimmed. (Full story)

Fixed-line Hong Kong telecom PCCW is down 4.8 percent to HK$1.19.

That's another low dating back to its takeover of Hong Kong Telecom in August 2000.

Li Ka-shing's technology affiliate Tom.com declined 4.35 percent to HK$2.20.

U.S. oriented trading house Li & Fung came back from its heaviest selling to end down 2.94 percent at HK$8.25.

TVB, the largest broadcaster, is off 3.47 percent at HK$25.00, prospects for Hong Kong's U.S.-oriented economy looking a little grimmer.

Singapore's Straits Times index is trading off 0.93 percent at 1,420.13 in the late afternoon, knocked by a decline in Singapore Airlines.