Nikkei ends lower, Asia mostly up

HONG KONG, China -- Most Asian markets closed higher on Tuesday, as tech stocks took their cue from Wall Street's overnight surge.

But Japan ended lower on doubts about a government economic package due Wednesday.

Taiwan, too, was down on profit taking among semiconductor stocks.

Australia, New Zealand, Korea, Hong Kong and Singapore were all higher.

In Tokyo, the benchmark Nikkei average lost 0.91 percent or 93.84 points to 10,202.63, while the broader capital-weighted Topix index gave up 0.33 percent or 3.30 points to 983.82.

Tokyo stocks were led down by big banks on expectations the government's anti-deflation package plan due Wednesday will not include the injection of public funds into ailing lenders.

A draft of the package obtained by Reuters news agency states the government would take all necessary steps, including capital reinforcement of the banks, if a threat of financial crisis emerged.

But traders said the draft contained nothing new of substance and was just trying to evade the issue of using taxpayers' money to revitalize banks and help them get rid of bad loans.

Mizuho Holdings, the world's biggest bank by assets, dropped 4.22 percent to 227,000 yen, and Sumitomo Mitsui fell 2.88 percent to 472 yen. UFJ Holdings lost 5.21 percent at 273,000 yen. MTFG was down 1.5 percent to 778,000 yen.

Consumer electronics giant Sony Corp was unchanged at 6,200 yen, while Kyocera Corp lost 0.9 percent at 7,670 yen.

Japan's leading mobile phone network, NTT Docomo was up 1.44 percent at 1.41 million yen. Japan Telecom added 1.8 percent to 392,000 yen.

Leading automaker Toyota Motor dropped 2.58 percent to 3,400 yen, but rival Honda Motor was up 0.6 percent at 5,030 yen and Nissan added 14 yen or 1.75 percent to 816 yen.

Above 800

South Korea's main share index closed above 800 for the first time in 19 months as institutional buying powered technology stocks, and airlines rose as a rail strike entered its second day.

The Kospi finished up 1.22 percent at 801.14, while the over-the-counter Kosdaq closed down 0.14 percent at 77.00.

Chipmaker Samsung Electronics closed up 1.5 percent to 337,000 won, while rival Hynix added two percent to 1,480 won, after U.S. tech shares rose.

Investors continued to ignore a strike by unions at Korea Electric Power Corp and railways. Power monopoly KEPCO ended up 1.6 percent at 22,300 won.

Airlines shares benefited from the strike. Korean Air, South Korea's flagship carrier, rose 2.6 percent to 15,600 won.

Analysts said Korean Air would benefit from a rising demand ahead of the month-long World Cup soccer finals in Korea and Japan that will kick off on May 31.

Hyundai Motor, Korea's largest automaker, finished up 1.8 percent at 34,250 won despite a partial strike by union-member workers in the afternoon.

Bucking the trend was steel giant Pohang Iron and Steel Co, which shed 3.8 percent to 151,000 won.

Disappointing earnings

The Australian stock market closed higher but lost some of its early gains after the release of dismal local profit reports and concern.

The benchmark S&P/ASX 200 index finished up 12.3 points or 0.4 percent at 3,434.8.

Shares in diversified miner WMC fell 3.4 percent to A$9.24 after the company reported that weak metal prices lowered its 2001 net profit by 47 percent.

Share registry and financial software group Computershare fell 6.9 percent to A$2.70, despite a rise in its first half net profit to A$24.47 million, after it warned of a flat full year result.

In Taiwan, stocks gave up sharp early gains triggered by a rise in U.S. shares. The Taiex index fell 10.92 percent or 0.20 percent to 5,499.79.

Index heavyweight Taiwan Semiconductor Manufacturing Co, the world's largest contract chipmaker, lost T$1.00 or 1.23 percent to T$80.00.

Weak sentiment

Singapore shares rose on a technical rebound, but sentiment remained weak as investors focused on domestic corporate earnings.

The benchmark Straits Times Index was 26.62 points higher at 1,694.29 in afternoon trade.

Analysts said official data showing a rebound in January manufacturing output could be tempered by continued weakness in the key electronics sector.

Singapore Airlines was up 40 cents or 3.1 percent at S$13.30.

Sound card giant Creative Technology rose 40 cents or 1.85 percent to S$22.00, while electronics contract maker Venture Manufacturing gained 20 cents or 1.49 percent to S$13.60.

DBS Group, Southeast Asia's largest bank, was up 20 cents or 1.5 percent at S$13.50. United Overseas Bank rose 30 cents or 2.24 percent to S$13.70, and OCBC Bank gained 20 cents or 1.61 percent to S$12.60.

In Hong Kong, stocks closed higher on renewed hopes for an early U.S. recovery.

The Hang Seng Index was up 0.49 percent at 10,547.13, lifted by technology stocks and global banking giant HSBC Holdings.

Shares of HSBC rose 2.05 percent to HK$87.00. The bank will unveil full year results next week.

Telecom leader China Mobile rose 1.8 percent to HK$22.80, while broadcaster Television Broadcasts gained 4.53 percent to HK$34.60.

Cheung Kong Holdings and Hutchison Whampoa, the twin flagships of tycoon Li Ka-shing, were both lower.