Major Asian markets end day up

By staff and wire reports

HONG KONG, China -- Asia-Pacific markets didn't heed Alan Greenspan on Thursday.

The two largest markets, Japan and Australia, worked narrowly into positive territory. South Korea rose, too.

But the Federal Reserve Chairman's warning of economic woes ahead, which sent U.S. markets lower overnight, drove Hong Kong stocks down.

Taiwan's market, a persistent laggard since February, sank back to a fresh seven-year low.

Nikkei still below 12,000

Tokyo's benchmark Nikkei index rose 0.1 percent to finish at 11,908.39. Investors were picking over stocks that have sold off recently.

The Nikkei on Wednesday sank below 12,000 for the first time since March.

The Topix index, which doesn't have such a strong tech weighting, lost 0.4 percent on Thursday to close at 1,195.25.

Japan's markets are closed on Friday for the Marine Day holiday.

Banks were weighing down the market. A large number of problem loans is widely considered Japan's biggest business problem.

Mizuho Holdings, the world's largest bank group by assets, lost 6.4 percent to 454,000 yen. During the day it set a new low since listing last September.

Japan's number four banking group, UFJ Holdings Inc., lost 4.02 percent to 573,000 yen.

But Daiwa Bank Ltd. closed unchanged at 136 yen. The bank, viewed as the weakest big player, said Thursday it is looking at linking with two local banks.

That would give it a future as a regional player, strong in Japan's second-biggest region, Kansai.

Investors pick tech plays

Several tech shares issues staged a rebound after steep falls.

Japan's top cellphone maker, Matsushita Communication Industrial Co Ltd., rose 0.7 percent to 4,470 yen after closing Wednesday at its lowest point since October 1998.

No. 2 telecom KDDI Corp. marched up 5.5 percent to 516,000 yen after saying it would start ultrafast Internet service with trials next March.

Japan's largest stock, NTT DoCoMo, Iost ground for a fifth day on jitters over profits. Mobile phone service provider DoCoMo fell 1.6 percent to 1.81 million yen, its lowest close since September 1999.

Australia up on bank gains

Australian shares ended with a very narrow gain. The S&P/ASX 200 rose 0.01 percent at 3,394.4.

Weak mining and media stocks negated a banking sector rally. The financial sector rose as investors bought defensive stocks after Greenspan's speech.

Mining giant BHP Billiton lost 2.9 percent to A$10.17, with Rio Tinto close behind, on fears metal demand could drop if economic conditions remain bleak.

The market's biggest stock, media giant News Corp., lost 1.5 percent to A$17.83. Investors were worried about its bid to buy U.S. satellite company DirecTV, which posted an increased quarterly loss this week.

Woodside Petroleum closed almost four percent lower at A$14.43, despite reporting a rise in sales.

Airline Qantas rose 1.7 percent as it continues talks with the New Zealand government over Air New Zealand.

In New Zealand, the benchmark NZSE-40 capital index rose 0.1 percent to 2,039.09. But Telecom New Zealand, the market's biggest stock, lost 3 cents to NZ$5.07.

In Hong Kong, the Hang Seng Index ended down 1.2 percent at 12,279.82.

China-related shares were again battered by heavy selling on rumors Chinese authorities are cracking down on money being smuggled from the mainland to play Hong Kong's cheaper markets.

China's two biggest mobile phone companies, China Mobile and China Unicom, led the losses. Mobile lost 3.5 percent and Unicom, 4.25 percent.

Both are "red chips," Hong Kong-based companies that get most of their business in China. The red chip index dropped 0.8 percent to 1,049.36.

The H-share index of China-based companies trading in Hong Kong fell 2.52 percent to 445.31.

China's B share markets, which are open to overseas investors, also tanked.

The U.S. dollar denominated Shanghai exchange dropped 6.0 percent. The Hong Kong dollar-traded Shenzhen exchange closed off 7.0 percent.

China's biggest computer maker, Legend Holdings, rose off Wednesday's 18-month low to end 1.9 percent higher at HK$4.075.

In Taiwan, the benchmark Taiex resumed losses after rising for a day. It closed down 0.7 percent at 4,163.99, its lowest point since November 1993.

The Taiex, dominated by computer-chip stocks, has lost 32 percent since February.

Its largest stock, world microchip foundry leader Taiwan Semiconductor Manufacturing Co., lost 1.6 percent to T$61.

Rival and No. 2 United Microelectronics Corp. fell 5.2 percent to T$34.50.

South Korea's benchmark Kospi rose on technology buying. It closed at 545.74, up 1.0 percent.

Its largest stock, world memory chip leader Samsung Electronics, rose 5.7 percent to 177,000 won.

But rival and world memory chip No. 3 Hynix Semiconductor fell 10.4 percent to its lowest ever close, at 1,515 won.

Hynix is moving its headquarters to California but shutting its Oregon plant for six months this northern summer.

In Singapore, the benchmark Straits Times index was up 0.1 percent at 1,630.02 on thin volume in afternoon trade.