Asia closes lower on earnings and weak dollar

Techs were already suffering with Sony on Thursday in Tokyo, where a stronger yen is hurting car stocks

By staff and wire reports

HONG KONG, China - Asian stocks closed in the red Thursday as a weakening U.S. dollar hurt the region's export-dominated markets.

Tech stocks had a day to forget for all but short sellers in Japan.

That pushed Tokyo markets down from the open, though the Nikkei made a slight rally near the end of the day. It still closed off more than 2 percent.

Hong Kong's markets were also off heavily on technology earnings. Australia closed lower as its largest airline reported earnings and it prepped for earnings overnight from its largest stock.

New Zealand also closed off, with Singapore trading lower in late trade.

But South Korea and Taiwan's markets managed decent gains.

Sony crunches lower

In Japan, the benchmark Nikkei index lost 2.0 percent to end at 11,515.02.

Tech flag carrier Sony Corp. was wounded in battle, giving up 4.9 percent to 6,010 yen. It went down on fears about earnings with its U.S. peers.

The world electronics No. 2 got no rise from the news it was doubling its hi-fi push into China.

The yen recently hit a two-month strong point against the dollar, and was trading at 119.34 on Thursday afternoon

Sony's slump also hurt the broader Topix, which has less of a technology bent. But it still closed down 1.6 percent at 1,175.07.

Nasdaq's overnight slide of 2.3 percent from Wednesday was pushing stocks lower. But so was the recent weakening of the U.S. dollar.

The yen, which recently hit a two-month high against the greenback, was trading at 119.34 to the dollar on Thursday afternoon.

Exporters hurt by dollar

Its sudden strength hurts stocks of big exporters. A weak yen makes exporters' products cheaper overseas and boosts their sales when they're returned to Japan.

Nintendo, gets about 70 percent of its sales abroad, plunged 9.3 percent to 19,500 yen.

Honda Motor Co., the nation's No. 3 car company, tumbled 4.8 percent to 4,810 yen.

Japan's leading auto group Toyota Motor Corp. clipped off 2.5 percent to 3,900 yen.

In Sydney, the benchmark S&P/ASX 200 index lost 1.1 percent to 3,328.6.

Qantas Airways, Australia's biggest carrier, fell 6.5 percent to A$3.03. Its full-year earnings came in down 20 percent at A$415.4 million. It warned of turbulent times ahead.

Sydney braces for News

The market is also bracing for earnings from News Corp., the largest stock trading in Australia, which will come out overnight, during the U.S. day.

Rupert Murdoch's media empire lost 3 percent to A$16.95 ahead of its results. Sluggish advertising and steep movie-promotion costs are expected to eat into profits.

There are also doubts about its ongoing bid for U.S. satellite company DirecTV, where it is in a war with EchoStar.

Property group Lend Lease closed down 3.4 percent at A$11.43 after announcing disappointing full-year earnings.

But retailer Coles Myer surged 86 cents to A$7.14 after naming ex-Brambles head John Fletcher as CEO and reporting a 6 percent jump in annual sales to A$23.7 billion.

In New Zealand, the benchmark NZSE-40 capital index dropped 0.3 percent to 2,040.62.

Winemaker Montana Group rose 3 percent to NZ$4.79 for a second day of gains.

Brewer Lion Nathan finished its forced sell off of a 19 percent stake in the company. But there are renewed hopes it might push ahead, to outdo rival Allied Domecq.

China Mobile drops call for Hong Kong

Earnings did in Hong Kong's Hang Seng index, the worst performing market in Asia this year.

The Hang Seng lost a heavy 2.6 percent to end at 11,832.44.

China Mobile, the market's second largest stock, was the main driver. It lost 9.8 percent to end at HK$31.40.

Mainland China's biggest cell-phone company, it reported earnings that were up 58 percent for the first half of the year.

But that still disappointed the market, which had expected a 64 percent jump. The stock had also run up ahead of its earnings.

Competitor China Unicom - China's cell phone No. 2 - fell 7.4 percent to HK$11.35.

Taiwan high

In Taiwan, the benchmark Taiex index closed up 1.4 percent at 4,687.33. That's a five-week high.

Banking and transportation shares are still rising from a double whammy from the government. The banking index rose 3.2 percent. It's up 18 percent since the start of August. Officials have said there will be government support for Taiwan's flailing farm-and-fishing co-ops.

China Airlines rose 4.1 percent to T$17.90. There are hopes Taiwan's airlines will soon be allowed to start direct service to mainland China. At the moment, Taiwanese businessmen have to fly indirect, typically via Hong Kong.

Electronics stocks, which normally drive Taiwan's market, were virtually flat. But that was decent after Nasdaq's overnight drop.

South Korea's Kospi climbed to a six-week high, rising 0.7 percent to 580.95.

Won gains

Like the yen, the Korean won has been strengthening. But that helps Korean companies with overseas debts, of which there are many.

Korea Electric Power Corp. rose 6.5 percent to 23,750 won.

But it hurts exporters like car companies. Korean No. 1 Hyundai Motor dropped 3.6 percent to 20,250 won.

Daewoo Motor Sales, the listed division of bankrupt Daewoo Motor, lost ground as officials confirmed negotiations to sell Daewoo to General Motor were not going well and a delay is likely.

Samsung Electronics, the market's biggest stock and the world memory chip No. 1, lost 1.3 percent to 195,000 won.

Korea's largest telecom, SK Telecom, fell 1.3 percent to 227,000 won.

Singapore's Straits Times index was down 0.3 percent at 1,639.32 in afternoon trade.

Trading was back in Mumbai after India's Independence Day. The Bombay Stock Exchange 30-share index was up 0.7 percent at 3,354.58 in the afternoon.

Reuters contributed to this report.