Japan stocks fall as Asia rises again

By staff and wire reports

HONG KONG, China -- Japan again broke ranks with other Asian stocks, falling Monday while most big markets closed with gains.

Australia, New Zealand, Taiwan and South Korea all rose. But Hong Kong and China dropped as investors locked in profits after China's weekend admission to the World Trade Organization.

Tokyo's benchmark Nikkei 225 index dropped 1.3 percent to 10,081.56.

The broader Topix index, which many money managers feel is more representative, fell 0.94 percent to 1,021.11.

OId economy lags in Japan

Old economy stocks were drifting, with Japan's largest steelmaker Nippon Steel falling 2.4 percent to 160 yen.

Sumitomo Metal Industries Ltd. dipped 2.1 percent to 47 yen.

Beyond the broader trends, there were a few gainers with stock-specific stories. Asahi Bank closed with a gain of 8.7 percent at 100 yen, after last week's heavy losses.

The company, one of Japan's weakest large banks, also confirmed that it plans to set up a cooperative venture with investment bank Goldman Sachs by the end of March to buy up to 300 billion yen of bad loans.

Japan's flagship carrier, Japan Airlines, picked up 3.85 percent to 297 yen after confirmation it is in talks to merge with Japan Air System Co., Japan's third largest airline. JAS lifted 3.3 percent to 3,750 yen.

The deal would create the sixth-biggest airline in the world.

Mazda Motor Corp., Japan's fifth-largest carmaker, closed up 1.4 percent at 213 yen. It reported a first half net profit of 1.3 billion yen, in line with expectations.

Mazda revised its forecast upward to a net profit of 1 billion yen last month. Toyota Motor Corp. and Honda Motor Co. reported better-than-expected earnings last week.

Hong Kong, China off after WTO entry

Hong Kong's benchmark Hang Seng index closed with a small loss of 0.16 percent at 10,592.45.

Mainland plays got little rise out of China's long-expected entry into the WTO. The Hang Seng Mainland Index of Hong Kong listed Chinese companies fell 0.6 percent to 1,120.64.

Investors were looking to lock in rises on the news. The biggest mobile-phone operator in China, China Mobile, fell 1.0 percent to HK$24.90.

Hong Kong's property stocks were off after a strong showing on Friday. New World Development fell 0.85 percent to HK$5.80, as investors wait for a string of U.S. economic news this week.

China's B shares, open to overseas investors, also sold off as China's highly speculative investors sold on the WTO entry.

The Shanghai B share index dropped 0.44 percent while Shenzhen fell 0.67 percent.

Australia up after election

In Australia, the benchmark S&P/ASX 200 index closed up 0.6 percent at 3,305.4. Over the weekend, the conservative government led by incumbent Prime Minister John Howard won a third term.

Mining stock WMC roared up 6.0 percent to A$9.96 on renewed reports that Alcoa Inc. was about to launch its takeover bid.

WMC told the Australian Stock Exchange it had opened its books to potential suitors.

News Corp. dropped 23 cents to A$13.72, with poor market conditions in the United States still affecting Sydney's largest listing. News Corp. gets 70 percent of its profits from the United States, where stocks won't trade Monday for a holiday.

Banking stocks continued their strong performance. National Australia Bank rallied 2.1 percent to A$32.05.

Westpac Banking Corp. was the strongest showing, up 2.3 percent to A$15.90.

Across the Tasman Strait, New Zealand's benchmark NZSE-40 Capital Index closed up 0.5 percent at 1,969.

Turnover was light, with investors waiting for the largest listing, Telecom New Zealand, to report earnings on Tuesday.

Takeover target Frucor Beverages was continuing to attract interest, up 3 cents to NZ$2.44. An independent report on Danone Group's bid for the company is expected to go to shareholders this week.

Taiwan, South Korea up on chips

In Seoul, South Korea's benchmark Kospi index rose 1.3 percent to 584.48.

The solid gains were driven by chip stocks. Hynix Semiconductor rose the daily limit of 15 percent, closing at 1,585 won.

The troubled world memory chip No. 3 recently won a new round of financing and is nearing deals to sell off some of its assembly lines.

Samsung Electronics Co. was up 0.8 percent at 200,000 won.

Chip stocks were also driving the Taiex in Taiwan. That index finished up 1.2 percent at 4,172.63.

Stocks were also buoyed by Sunday's approval of Taiwan's entry into the World Trade Organization. That should take effect in a month.

Traders said the buying wasn't particularly deep though, suggesting it might not last.

Winbond Electronics was the most active stock, the chip maker gaining 4.8 percent to T$15.40.

Rival Mosel Vitelic lifted the daily 7 percent max for a Taiwanese stock, to end at T$7.65.

Singapore's Straits Times index was up 0.6 percent at 1,371.39 in late afternoon trading.

Singapore Airlines was climbing again after putting off delivery of 10 new Airbus planes last week.

Banks such as OCBC and United Overseas Bank were also up.

Stocks were up in India, too. In Mumbai, the main index was up 0.4 percent going into afternoon trade, with "old economy" stocks rising.

Reuters contributed to this report.