Asian markets develop split personality

By staff and wire reports

HONG KONG, China -- Asian stocks drifted on Friday, with Tokyo's two main indexes split.

The tech-driven Nikkei index rose 0.75 percent to end at 10,511.65.

But the broader Topix index fell 0.61 percent to 1006.76, as worries about corporate failures continue to plague old-economy stocks.

That split personality carried through to China, where the Shanghai B share market fell but the Shenzhen B shares rose.

South Korea dropped but Taiwan closed higher. The chip-driven markets tend to move in tandem.

Hong Kong and Singapore were both down.

Indian stocks were off another 1.1 percent after the attack on parliament in New Delhi, where the identity of the five attackers -- all killed -- is still unsure.

Exporters rallying on yen breakout

In Tokyo, the yen was the topic of conversation for traders, blowing through the 127 mark against the dollar.

It was trading at 127.40 to the U.S. currency late on Friday, a rate not seen since 1998.

The weakening yen boosted exporters. Honda Motor Co., Japan's third-largest car company, rose 2.54 percent to 4,850 yen.

A weak yen makes Japanese cars cheaper overseas and boosts the earnings of companies like Honda when the sales are translated back into the Japanese currency.

Currency experts didn't have a particular explanation for the sudden weakening of the yen, which they attributed to Japan's continued economic woes.

That was also putting equity investors off. After last week's collapse of midsize construction company Aoki, investors have been waiting for the next failure.

Aoki is the 13th public company to go under in Japan this year.

On Friday, Asahi Bank crunched to a low of 57 yen, its bottom for the year, before closing down 18.1 percent at 59 yen.

Asahi is a major Aoki creditor. It is also merging with Daiwa Bank by next March. Daiwa dropped 4 percent to 72 yen, after also hitting its lowest point this year during the day.

Trading houses like Marubeni Corp. and Nissho Iwai Corp. were also seeing heavy speculation. Marubeni fell 6.2 percent to 76 yen, and Nissho Iwai ended down 2.8 percent at 70 yen.

Volume was high in Japan, where the markets made it through a "double witching" day, when both options and futures expire.

Australia at weakest level this month

In Sydney, the S&P/ASX 200 index dropped 0.66 percent to end at 3290.8. That brought Australian stocks to their lowest level this month.

News Corp., the largest listing, spent most of Friday clawing back from early losses. It ended down 2 percent at A$15.12.

News gets around 70 percent of sales in the United States. American stocks dropped overnight, with the Dow down 1.3 percent and Nasdaq down 3.2 percent.

Broadcaster PBL fell 1.3 percent to A$9.50, after last week's hospitalization of mogul Kerry Packer.

Gold producer Normandy fell 2 cents to A$1.76. Its board recommended rejecting AngloGold's offer for the company, and accepting Newmont Mining's bid instead.

Bank stocks came back off early gains, with National Australia Bank closing down 0.5 percent at A$30.75.

New Zealand's benchmark NSE-40 index dropped 1.07 percent, its recent strength finally giving way to selling.

Taiwan banks drive gains again

In South Korea, the benchmark Kospi index closed down 1.68 percent at 665.20.

Taiwan's main Taiex index rose 1.46 percent to end at 5,486.73.

Though the chip-driven market typically follows Nasdaq, bargain hunters were betting on future gains in Taiwan.

The market has hit a seven-month high, after elections at the start of the month. It's up 24 percent since the polls closed.

Banking stocks again led the buying, after a rule change that makes mergers more likely. The bank subindex rose 3.4 percent.

The electronics subindex was up just 1.6 percent, in comparison. Market drivers like United Microelectronics, down 1.2 percent to T$48.80, and Taiwan Semiconductor Manufacturing Co., down 0.60 percent to T$83.50, were off.

The contract-chip makers, the world's largest, are also the largest two stocks in Taiwan.

Offsetting that tech weakness, Chinatrust Commercial Bank was up the daily limit to T$22.30. First Commercial Bank matched that to end at T$22.40.

Stocks can only rise or drop 7 percent in a day in Taiwan.

In Hong Kong, the main Hang Seng index fell 0.55 percent to end at 11,466.11.

Property stocks continued yesterday's selloff, with Sun Hung Kai Properties falling 1.9 percent to HK$64.00.

Beleaguered Pacific Century CyberWorks dropped another 1.1 percent to HK$2.175.

China plays were weak, as China stocks trod water. Hong Kong's second largest listing, China Mobile, fell 1.9 percent to HK$28.20.

In Shanghai, the U.S.-dollar traded B shares fell 0.13 percent. But the Hong Kong-dollar denominated Shenzhen market climbed 0.2 percent.

Investors are worried about a flood of new domestic A share listings sapping cash from the market.

In Singapore, the benchmark Straits Times index was down 0.3 percent at 1,564.73 in the last hour of trade.

The main Mumbai index was trading off 1.1 percent heading into afternoon trade. The government is still investigating the cause of Thursday's suicide attack, and the country is on high alert.

Reuters contributed to this report.