Asian markets weaker on technology fears

U.S. profit warnings increase fears to Japanese high-tech companies

By staff and wire reports

TOKYO, Japan -- Share markets across the Asian region began the day on a negative tone after Wall St fell overnight and fears grew concerning upcoming earnings for technology companies, particularly in Japan.

In Tokyo, The Nikkei index of 225 shares ended 50.56 points, or about 0.4 per cent, weaker to stand at 13,124.28 while the broader TOPIX measure closed the session down 4.40 points, or about 0.3 per cent, at 1,303.12.

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Telecom shares fell sharply, including NTT DoCoMo and KDDI.

People are getting increasingly nervous about the possibility of profit warnings from high-tech companies. The H-P news is not very welcome here, not at all," Hidenori Karaki, equities general manager at Tokyo Mitsubishi Personal Securities told Reuters.

Banking issues also suffered after ratings agency Standard and Poor's said Wednesday that Japanese banks remain vulnerable to external factors, such as the declining economy and falling stock prices.

In Hong Kong, the Hang Seng Index was trading 89.57 points lower at 13,487.44, in line with market fears that the index was headed towards the 13,200 mark or lower as more technology stock profit warnings hit the screens.

The Taiwan market, also vulnerable to downturns in the technology sector, was 68.48 points lower at 5151.96 in early trading.

In Sydney, the S&P/ASX 200 index clawed back some of its early losses by midday to be trading just 4.5 points lower at 3418.8. The Australian market had rallied strongly Wednesday after better-than-expected growth figures showing the country had averted falling into recession.

Overnight in the U.S., the Dow industrials slipped 105.60 points, or 0.94 percent, to 11,070.24 while the Nasdaq shed 15.93, or 0.7 percent, to 2,217.73. The S&P 500 dropped 13.54, or 1 percent, to 1,270.03.

Reuters contributed to this report.