Asian markets lose their steam


Mizuho is writing off 2 trillion yen in bad loans this year, but its stock lost headway on Tuesday after recent gains

By staff and wire reports

HONG KONG, China -- Asian stocks lost their head of steam on Tuesday, after a run that saw Japanese stocks hit their highest level since August 29.

The benchmark Nikkei 225 ran out of momentum in the afternoon, ending down 1.04 percent at 10,948.89. At one point during morning trade, it touched 11,131.26.

The Topix index dropped 0.84 percent to finish at 1,079.59, as bank stocks gave way after Monday's strong gains.

Markets in Taiwan, South Korea and Hong Kong also closed down Tuesday after setting multimonth highs the day before.

But Asia Pacific's losing indexes were roughly matched by gainers.

Stocks in Australia inched forward to their highest in three months, and New Zealand's stocks had some of the best gains of the day, up 1.5 percent.

Stocks in the Philippines, where continued unrest has prompted many international investors to leave, jumped 2.1 percent in the day's biggest move.

Bank stocks give up writeoff run

In Japan, the luster came off bank stocks after their recent bull run. Investors have rewarded Japan's Big Four bank groups for writing off 5.48 trillion yen ($44.17 billion) in bad loans this business year.

Mizuho Holdings Inc., the world's biggest bank by assets, fell 4.47 percent to 342,000 yen, though. On Monday it said it will write off 2 trillion yen in the year through March, deepening its loss.

UFJ Holdings, Japan's No. 4 bank group, fell 2.5 percent to 472,000 yen. It said last week it will take a 600 billion yen ($4.8 billion) blow to the bottom line to deal with bad loans.

"Hopes seem to have got ahead of reality a bit when it comes to bank shares," Hiroshi Sato, equities manager at Cosmo Securities, told Reuters. "But hopes alone can keep bank issues buoyant for so long. Theiri bad-loan problems are really deep-rooted."

A weaker yen, now trading at 124.04 to the dollar, has boosted big exporters. Electronics maker Sony Corp. rose 1.86 percent to 6,010 yen.

It gets one-third of its sales in the United States. Similarly, copier-and-camera company Canon Inc. rose 2.39 percent to 4,280 yen.

The market also suffered a slight shudder on news of shooting along the North Korea-South Korea border, though no injuries were reported.

Korea not affected by shooting

In South Korea, the benchmark Kospi index ended a three-day run of rises, dropping 0.66 percent to 670.10.

Overseas investors have been buying Korean stocks on the country's relative economic strength.

The Finance Ministry dealt those hopes another winning hand on Tuesday, forecasting growth of 3 percent in the first half of next year.

Tech shares were another source of strength. The market's biggest listing, Samsung Electronics, lifted 0.4 percent to 231,000 won. Hynix Semiconductor jumped 9.5 percent to 2,130 won.

Financials, which have risen on the economic data, lost a little ground.

Taiwan's market often moves in tandem with South Korea, sharing a reliance on chip stocks. The Taiex index lost 0.6 percent to 4,580.33.

Financials were also off in Taipei. But the market was underpinned by a strong performance from Taiwan Semiconductor Manufacturing Co.

Late Monday, it increased its profit forecast for 2001 by 55 percent to T$9.35 billion, just two months after cutting it.

TSMC stock rose 2.03 percent to T$75.50. Rival chip foundry United Microelectronics Inc. lifted 3.1 percent to T$39.90.

With elections coming on December 1 in Taiwan, investors say the market will trade in a tight range of 4,500 to 4,900.

Australia at three-month high

In Australia, the S&P/ASX 200 index nudged into the black with a 0.22 percent rise to 3,355.8. That's a three-month closing high.

The index eased back from 3,370.5 as the two largest listings, News Corp. and Telstra, dropped in afternoon trade. Together they account for some 15 percent of the index.

Higher base metal prices in Europe helped mining stocks. Rio Tinto rose 3.7 percent to A$36.40. BHP Billiton closed up 2.7 percent at A$10.01.

Australia's biggest retailer, Coles Myer, rose 5.4 percent to A$8.03, its highest this year, after predicting profits will rise 20 percent this year.

In New Zealand, the benchmark NZSE-40 Capital index closed up 1.55 percent at 2,040.43.

New listing Fisher & Paykel Healthcare had yet another up day, rising 6.3 percent to end at NZ$18.60.

The market showed little reaction to the New Zealand government's decision to buy an 82 percent stake in Air New Zealand.

The rescued carrier's B shares, open to overseas investors, rose 1 cent to NZ$0.39.

Hong Kong just off three-month high

Hong Kong's Hang Seng lost 1.14 percent to finish at 11,261.54. It had also finished at a three-month high the day before.

Recent risers such as property developer Cheung Kong Holdings were off. It lost 1.89 percent to HK$78.00, after gaining 52 percent since September 21.

The biggest listing, bank stock HSBC, fell 1.3 percent to HK$93.50.

Chian's markets were up 0.85 percent in Shanghai and 0.84 percent in Shenzhen.

In Singapore, techs were moving ahead on better profit prospects. The Straits Times index rose 1.52 percent to 1,497.94 heading toward the end of trade.

Mumbai's market was up 0.5 percent in afternoon trade in India.

Reuters contributed to this report.