Tokyo dips, Asia ends week lower

HONG KONG, China -- Japan and most other Asian markets ended the week lower on heavy selling, as bleak earnings results and a cautious outlook for February dampened investor sentiment.

In Tokyo, the Nikkei 225 average closed at a four-month low of 9791.43, a drop of 206.37 points or 2.06 percent.

The broader capital-weighted Topix index dropped 15.51 points or 1.60 percent to a fresh 17-year closing low of 956.26.

Australia, Korea, Hong Kong and Taiwan all ended the day lower, Singapore was flat and New Zealand and the Philippines finished in the black.

Tokyo was down on growing concerns over Prime Minister Junichiro Koizumi's structural reform plans. Sentiment in Japan was already weak after a stream of dismal earnings results.

On Thursday, NEC Corp and Pioneer Corp became the latest big Japanese firms to warn of deteriorating earnings, sending their shares and those of their peers steeply lower on Friday.

NEC tumbled 10.86 percent to 936 yen. Pioneer ended down by its daily 400-yen limit at 2,545 yen.

Big banks were also weaker on worries over their bad loans. Mizuho Holdings, the world's biggest bank by assets, lost 14,000 yen or 6 percent to 218,000 yen.

Automakers and leading exporters Toyota and Honda were among the rare gainers, helped by the lower yen.

In Seoul, shares slid by the close on a cautious outlook for the February market.

The Kospi ended 0.76 percent lower at 742.42, while the over-the-counter Kosdaq dropped 1.78 percent to 75.98.

But market heavyweight Samsung Electronics rose 2.83 percent to 309,000 won, while Hynix Semiconductor soared 7.2 percent to 2,615.

Hynix made the gains on reports it is headed for a strategic alliance with Germany's Infineon Technologies.

News Corp weak

Australian shares failed to hold onto early gains. At one point point it looked as if the market would reach a record high, but it was dragged lower in the day by heavy selling and weakness in media group News Corp.

The benchmark S&P/ASX 200 ended 0.5 percent lower at 3,445.5.

Market heavyweight News Corp fell 2.1 percent to A$13.41 on renewed fears it will post dismal second quarter results on February 13.

But money continued to pour into resources issues. Rio Tinto ended up 3.4 percent at A$39.60 while rival BHP Billiton rose 1.1 percent at A$11.30.

In Taiwan stocks ended a touch lower, ahead of a long market holiday next week.

The Taiex index fell 14.21 points or 0.24 percent at 5,857.93.

Taiwan Semiconductor Manufacturing Co (TSMC) fell T$2.00 or 2.29 percent to T$85.50.

But rival United Microelectronics Corp, (UMC) gained T$0.30 or 0.64 percent to T$46.90 after announcing a collaboration with Advanced Micro Devices.

Active trade

In Singapore, shares were firmer by midday in active trade, but the market gradually weakened in the afternoon to close virtually flat.

The benchmark Straits Times index was up about a point to 1,788.74 just before the close.

Among the blue chips, OCBC Bank rose 3.1 percent to S$13.30 on buying by funds.

In Hong Kong the benchmark Hang Seng index dropped 0.32 percent or 34.05 points to 10,691.25 ahead of the earnings season next week.

Hong Kong's dominant carrier Cathay Pacific Airways rose 0.87 percent to HK$11.60 on hopes the aviation sector would be the first to benefit from a global economic recovery.

Chinese offshore oil producer CNOOC also climbed 2.5 percent to HK$8.20 due to an increase in crude prices after a huge explosion and fire at an oil gathering center in Kuwait.

Banking leader HSBC was marginally higher at HK$87.25.