Asia stocks drift to a lower close


Asian stocks sold off across the board, though most losses were mild with Tokyo posting the largest fall

HONG KONG, China -- Asian markets slumped on Monday, with Tokyo suffering the most.

The Nikkei 225 index fell 2.13 percent to close at 10,357.15. The broader market, as measured by the Topix index, fell 1.87 percent to leave it just above a psychologically important level at 1004.48.

Gainers were few and far between in Asia generally. Only the Jakarta market is trading in positive territory as the Asian afternoon winds down.

South Korea and Taiwan gave back their midday gains and ended down. Australia, New Zealand and Hong Kong all dropped.

Singapore is trading just slightly in the red as the Lion City's business day comes to a close.

In Tokyo, the strength of the yen is still depressing prices of major exporters.

Exporters off in Tokyo

Electronics maker Sony Corp. fell 2.65 percent to 5880 yen. Car-industry leader Toyota Motor Corp. closed down 0.17 percent at 2990 yen.


DoCoMo came to a 10-month closing low, as WorldCom-related negative sentiment filters through the telecom industry

But the losses were broad, with domestic telecoms also speeding south. NTT DoCoMo fell 3.03 percent to 256,000 yen. That brought DoCoMo to a 10-month closing low.

The declines in Japanese technology leaders built on one of Wall Street's worst weeks last week (full U.S. story).

The yen stands stronger at 116.16 to the U.S. dollar in early European trade. The currency drew strength from current-account surplus figures for May, up 108 percent (full story).

Korea ends down

The Korean won is stronger again at 1176.5 at the close of Seoul trade.


The strong yen is still exerting pressure on major exporters, as is the stronger won for South Korean stocks

Korean stocks oscillated during the day, the Kospi opening lower, rising, and finally closing down 1.2 percent at 783.52.

Cell-phone company SK Telecom, another favorite of international funds, lost 0.73 percent to 273,000 won. it reported a 42 percent lift in first-half profits Monday (Full Story)

Iron and steel company POSCO fell 1.8 percent to 136,500 won. Overseas buying revolves around a few large caps in Korea.

Korea's second-largest consumer electronics company, LG Electronics, fell 3.5 percent to 47,350 won after a runup following the World Cup.

Taiwan's foundries down

Taiwan also showed gains at midday but slumped by the close. The Taiex ended down 0.43 percent at 5,393.01.

Chip foundries TSMC and UMC explained most of the selling. TSMC fell 2.11 percent to T$69.50. UMC lost 1.68 percent to T$41.00.

Memory chipmaker Winbond Electronics rose the daily 7 percent limit T$22.50.

Like Taiwan, most of Asia's losses were not severe, though the selling was across the board.

Australia off on mining stocks, News

Australia's market ended down 0.32 percent, with the S&P/ASX 200 at 3,187.3. News Corp. fell 1.8 percent to A$10.11, mainly on concern about the U.S. economy.

Mining stocks were down, both BHP Billiton and Rio Tinto selling off. Newcomer BHP Steel made its ASX debut and finished 7 percent above its listing price

Australia's biggest retailer, Woolworths gained 0.6 percent to A$12.81 after posting a jump in fourth-quarter sales(Full Story).

National Australia Bank recovered 1 percent to A$33.85, after last week's knock on word it may bid for Britain's Abbey National.

New Zealand's Top 40 finished down 0.68 percent at 2,064.59. Telecom New Zealand felt the telecom selloff, down 1.0 percent to NZ$5.05.

New Zealand's government said Monday inflation is running at 2.8 percent (full story).

Hong Kong off on HSBC

Hong Kong closed down 0.63 percent to 10,581.73. Bank stock HSBC fell 1.4 percent to HK$87.75.

Tycoon Li Ka-shing's flagship company Cheung Kong Holdings rose 0.76 percent to HK$66.50, ahead of Tuesday's debut of its CK Life subsidiary (full story).

Brilliance China led the gainers, up 10.1 percent to HK$1.19. It announced a joint venture with BMW to make cars in China.

China said on Monday that its economy grew a fiery 7.8 percent in the first half of the year (full story).

Singapore is trading down 0.02 percent at 1,613.74 just before the close. A government panel proposed a limit on retirement-fund withdrawals.