Japan, HK fall but Taiwan ends up


Investors weren't in a buying mood in Japan despite the central bank's moves and talk of a tax cut

By staff and wire reports

TOKYO, Japan -- Asian stocks ended with losses in Australia, Hong Kong and Tokyo.

But the direction wasn't uniform among Asia's smaller markets, with strong gains in Taiwan and a slight lift in New Zealand.

The broad Topix index of all section one stocks in Tokyo fell 1.75 percent to 1,074.52, reacting to bank stock losses. The benchmark Nikkei 225 average fell less, off 1.61 percent to 11,144.84.

There were strong gains in Taiwan, where the market rose just over 3 percent on bank and chip stocks.

South Korea closed for elections

Hong Kong closed off 0.26 percent to 11,119.33, a reverse from earlier gains, with Singapore also lower in late afternoon trading.


Volume was low in both Hong Kong and Singapore, with first-time qualifier China finishing its last game in the World Cup

In South Korea, markets are closed for a holiday Thursday so that regional elections take place. With the soccer World Cup on, turnout is expected to be low.

Volume was thin in Hong Kong, where China played its final game in this World Cup. The first-time qualifier lost 3-0 to Turkey, exiting the tournament with the same number of goals as defending champion France -- none (full China-Turkey report).

In Tokyo, the Nikkei opened higher but soon drifted into the red. It ended at a two-month low.

Brokerage stocks were at the heart of the action. Nomura, the largest, fell 6.2 percent to 1923 yen. Nikko Cordial, Japan's No. 3 broker, also ended down.

Investors not in a buying mood


The G7 has a meeting this weeekend, which gave investors in Tokyo pause for thought on Thursday

But investors were not in the mood to buy. Financial ministers from the Group of Seven industrialized nations are also meeting this weekend, another concern for traders.

The yen is weaker again against the U.S. dollar, at 125.72 in early London trade.

In Sydney, the main Australian index sank through the afternoon. The S&P/ASX200 finished down 0.43 percent at 3313.6.

Bank and retailing stocks have been among the recent losers in Sydney. Media conglomerate News Corp., the largest listing in Sydney, fell 0.9 percent to A$11.55.

Mining stocks were among the gainers, with BHP Billiton up 3.0 percent to A$10.61 and Rio Tinto moving ahead 0.4 percent to A$35.56.

Gold stocks off Down Under

But gold stocks, one of the most defensive positions of all, fell as bullion eased its headlong surge. AurionGold fell 4.4 percent to A$4.16.

Canadian company PlacerDome's offer, made last month, now values AurionGold at just A$3.79 per share, as of the Wall Street close.

In U.S. trade, the Dow Jones industrial average closed Wednesday up 1.06 percent to 9617.71. Nasdaq added 1.47 percent or 21.94 points to 1519.12 (full U.S. roundup).

In Taipei, Taiwan's main index, the Taiex, burst through to a 3.01 percent gain. It ended at 5,562.23.

Taiwan's market is volatile, however, and moves of up to 5 percent are not uncommon. It is driven by banks and chip stocks.

Chips up in Taiwan

Chip foundry and market heavyweight TSMC strode ahead 4.86 percent to T$75.50. Rival United Microelectronics picked up 4.57 percent to T$43.50.

Chunghua Telecom hit its peak for the year, up 0.92 percent to T$55.00, with the government auctioning off a 5.7 percent stake.

New Zealand's market again broke paths with Australia, the Top 40 driving ahead for a gain of 0.28 percent to finish at 2118.79.

Forestry company Carter Holt Harvey rose 2.0 percent to NZ$2.03.

Hong Kong's Hang Seng index fell 0.26 percent to 11,119.33. Bank stock HSBC fell 1.07 percent to HK$92.50.

One of the main gainers was Johnson Electric. The small-motor maker arrested its heavy losses to rise 3.91 perrcent to HK$9.30.

In Singapore, the Straits Times index is down 0.48 percent at 1638.01. The index turned back from early gains.

India's stock market is lower to the tune of 0.52 percent, with the market in Karachi paring losses to leave it down 0.06 percent in early afternoon.