Asia closes lower on weak U.S. data


Taiwan's two big chip foundries closed down sharply in Wednesday trade

TOKYO, Japan (CNN) -- Most Asian markets closed sharply lower Wednesday, driven down by weak U.S. economic data and some corporate results that spooked Wall Street.

South Korea and Taiwan both lost more than 3 percent. But Japan pulled out of an early nosedive to close less than 1 percent lower.

Tokyo's benchmark Nikkei 225 index jumped 200 points in the last 15 minutes of trading after the central bank governor said the BOJ would buy shares directly from Japan's embattled banks.

The Nikkei closed down 0.75 percent at 9472.06, while the broader, capital-weighted Topix index lost half a percent to 927.79.

Hong Kong and Singapore also gave ground, with the Hang Seng off 2.39 percent and the Straits Times down about 1.8 percent heading into the close.

In Australia and New Zealand, where stock movements usually are more muted, the markets lost about 1.152 percent and 0.34 percent respectively.

The region's biggest loser was Taiwan's Taiex, which gave up 3.26 percent to 4482.65. Seoul's Kospi lost 3.15 percent to 703.87.

In Tokyo, the Nikkei's fall follows Tuesday's sharp jump, when it lifted 3.27 percent to break above the 9500-point level for the first time since September 2.

Sony, DoCoMo down


Japanese banks including Mizuho Holdings staged a dramatic turnaround after the BOJ threw them a stock-buying lifeline

Big-cap stocks such as Sony Corp and NTT DoCoMo recovered from heavy early falls but still lost ground, down 1.65 percent and 1.77 percent to 5350 yen and 222,000 yen respectively.

Consumer electronics leader Sony relies on the U.S. for much of its sales and has been looking for a brighter end-of-year retail season.

Canon, another big exporter, lost 3 percent to 4120 yen.

Leading computer and chipmaker Toshiba fell 2.51 percent to 388 yen. Rival Fujitsu fared better, closing unchanged at 565 yen. Matsushita Electric Industrial dipped 2.1 percent to 1379 yen.

The big banks took an early battering, then soared in the last session after the Bank of Japan threw them a lifeline on their stock holdings.

Mizuho Holdings, which was down almost 5 percent, closed 2.88 percent higher. UFJ, MTFG and SMBC all rose.

Banks, which close their half-year books on September 30, had seen the value of their investments plummet as the Nikkei tumbled to a 19-year low earlier this month.

That prompted fears about the banks' health. But BOJ Governor Masaru Hayami said Wednesday the central bank will buy shares directly from financial institutions to ease the impact.

Another gainer was Nissan Motor, which put on 2 percent to 947 yen on expectations its deal with China's Dongfeng will open up a new market. (Full story)

Profit warnings

But many Tokyo stocks reacted instead to Wall Street's Tuesday dip, when the Dow Jones industrial average shed two percent to its lowest close in six weeks. (Full U.S. roundup)

That was prompted by a stream of profit warnings from companies including fast-food giant McDonald's Corp and a surprise drop in industrial output. (Full story)

In South Korea, market heavyweight Samsung Electronics ended down 2.63 percent to 333,000 won.

Investor favorite SK Telecom dipped 3.3 percent, big automaker Hyundai Motor ended off 3.5 percent and memory chipmaker Hynix Semiconductor fell more than 5 percent.

Daewoo Motor Sales Corp, which is a proxy for Daewoo Motor, lost 1 percent after Daewoo creditors agreed to a planned 77 percent writeoff of debts owed by the bankrupt carmaker. (Full story)

In Singapore, Singapore Airlines is down 3.77 percent to S$10.20, despite regional optimism in the aviation sector. SingTel is off 2.7 percent to S$1.43.

Taiwan's biggest stock, chip foundry TSMC, tumbled almost 7 percent to T$45.60 as techs felt Wall Street's fall.

Rival UMC lost 6.64 percent to T$25.30. Industrials such as Formosa Plastic and Nan Ya Plastic also fell.

Australia weaker


Daewoo Motor Sales Corp lost about 1 percent, following a hefty debt writeoff plan by Daewoo Motor creditors

Australia's S&P/ASX200 lost 1.15 percent to 3120.3. The market's biggest issue, media group News Corp, was down 3.4 percent to A$9.69. News gets most of its earnings in the U.S.

Another bluechip, telco Telstra, lost 0.6 percent to A$4.84. Big resources groups BHP Billiton and Rio Tinto also fell, as did the big four banks.

Hong Kong's Hang Seng index gave up 2.4 percent to 9474.07. Telco PCCW fell again, losing 3.3 percent to HK$1.16.

Banking leader HSBC dipped 2.3 percent to HK$85.20 and China Mobile slipped 4.8 percent to HK$18.75.