Rate cut fails to lift Asian markets

The Tokyo market suffered a sharp drop due to a slump in technology shares

HONG KONG, China -- Most Asian stock markets slipped by midday Wednesday as a U.S. interest rate cut failed to lift investor sentiment.

VIDEO CNN's Lian Pek with Asian stock market update Play video (QuickTime, Real or Windows Media)

Korea, Hong Kong and the Philippines were among the exceptions to show gains.

In Tokyo stocks fell sharply by midday after a profit warning by top electronics parts maker Murata Manufacturing Co Ltd frightened investors and triggered falls in technology shares.

The benchmark Nikkei average was down 1.35 percent at 13,864.76. The capital-weighted TOPIX index fell 0.80 percent, to 1,367.87.

In Australia, the benchmark S&P/ASX 200 index was down 10 points or 0.3 percent at 3,379.3 at noon.

In Tokyo, Murata dived 14.82 percent to 9,480 yen, after the company said it expects a 46 percent slide in group net profit to 57 billion yen ($463 million) in the year to next March due to the recent info-tech slump.

Kyocera Corp fell 8.33 percent to 10,900 yen and TDK Corp lost 4.24 percent to 7,220 yen.

Hong Kong finance stocks move higher

In Hong Kong, the rate cut had little effect on major shares, although rate-sensitive property and finance stocks were marginally higher.

The benchmark Hang Seng Index was up 292.17 points at midday to 13,542.56.

In Sydney, media giant News Corp dropped 3.2 percent to A$17.33. News Corp was languishing on concern about the drawn-out negotiations with General Motors about merging News' satellite services with GM's satellite television unit DirecTV.

In Taiwan, shares drifted lower in early trade. The benchmark TAIEX was down 1.18 percent at 5,098.13

Korea gains

In Korea, shares inched up in early trade led by Hynix Semiconductor and banking shares following the widely anticipated rate cut.

The Korea Composite Stock Price Index was up 0.59 percent at 584.72. The over-the-counter Kosdaq gained 0.85 percent to 82.17.

Hynix Semiconductor shares were up 120 won at 4,5000 won. Korea Exchange Bank, Hynix's main creditor, firmed 5.9 percent to 2,520 won, propelled by signs of progress in resolving problems of Hynix Semicon and Daewoo Motor.

Reuters contributed to this report.

Note: Pages will open in a new browser window

External sites are not endorsed by CNN Interactive.