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Japan slides as banks give way
By Alex Frew McMillan
HONG KONG, China (CNN) -- Japanese stocks started the second half of the fiscal year with a decline on Tuesday. The Nikkei 225 average ended down 2.36 percent at 9,162.26, with the broader Topix index down 1.92 percent to 903.37. Taiwanese stocks also declined. But most other large markets in the region rebounded. South Korea came back from Asia's heaviest selling on Monday, a 2.6 percent fall, to rise almost 1 percent. Australia locked in a gain of half a percent. Singapore was trading higher for much of the day but is essentially flat heading into the close. New Zealand couldn't sustain Monday's against-the-grain rise, however, and ended slightly down. Markets in China and Hong Kong were closed Tuesday for the National Day holiday but will resume on Wednesday. Banks off on uncertaintyIn Japan, investors showed disappointment with new Financial Services Minister Heizo Takenaka's first moves to deal with the bad debt problem afflicting Japanese banks.
Most bank stocks rose on Monday after his appointment, which promises a tougher stance on bad debt. But skepticism set in on Tuesday, with the markets unclear on how quickly any progress would be made. The minister is forming a bank task force to combat what he says is Japan's financial "malaise." (Full story) Industry leader Mizuho Holdings fell 6.7 percent to 266,000 yen. UFJ Holdings led the net loss leaders with a 39,000 yen fall, or 12.1 percent, to 284,000 yen. Sumitomo Mitsui Banking Corp. fell 5.6 percent to 646 yen. Mitsubishi Tokyo Financial Group, generally regarded as the securest of the Big Four, gave up 1.7 percent to 884,000 yen. Toyota doesn't take to salesToyota Motor Corp. dropped 2.2 percent to 3,060 yen despite posting surprisingly strong auto sales for September. It led the industry with a 9.9 percent jump. (Full story) Technology stocks weathered another depressing day, computer maker NEC Corp. falling 3.2 percent to 568 yen, with global investor sentiment deeply pessimistic. Japanese stocks showed little reaction to a slight rise in the Bank of Japan's tankan survey of corporate confidence. The increase was less than expected. (Full story) The yen is slightly stronger at 121.75 to the U.S. dollar in early trade out of the U.K. Kospi surges at end of dayIn South Korea, the Kospi finished up, thanks to a late surge. The index put on 0.88 percent to end at 652.13. Traders said the government is considering injecting 250 billion won ($205 million) into the flagging market, according to Reuters news agency. Banks and other recently depressed stocks were the main gainers, with chemical company LG Chem up 4.6 percent to 34,000 won. SK Telecom lifted 1.3 percent to 240,000 won, but fixed-line carrier KT Corp. lost 2 percent to 53,700 won. Australian big caps upAustralia also moved ahead, the S&P/ASX 200 index closing 0.55 percent higher at 2,987.2. That brought the market off a one-year low. News Corp. nudged ahead 0.7 percent to A$8.85 with problems including regulatory issues emerging in its attempt to buy Italian pay-TV company Telepiu. AMP gained 0.7 percent to A$11.78, clawing back some of Monday's losses after it made its temporary CEO permanent. (Full story) Telstra, BHP Billiton and the National Australia Bank all locked in gains, with financials in general rising on strong housing demand. New Zealand's Top 40 index, one of the few gainers in Asia on Monday, succumbed to the global downturn on Tuesday, falling 0.23 percent to 1,987.48. Telecom New Zealand supported the market again, with a 0.6 percent climb to NZ$4.95. The New Zealand Stock Exchange proposed changes to its benchmarks that would scrap the Top 40 and instead look at a free float of the Top 50 stocks. Taiwan at 11-month lowTaiwan's Taiex gave ground for the second day in a row, off 0.69 percent to 4,162.77. That brought the Taiex to its lowest level since November 2001. Chip foundry UMC, the second largest listing, fell 3.8 percent to T$22.80. Larger rival TSMC lopped off 2.4 percent to T$40.10. The Taiex again outperformed U.S. technology stocks of the day before, however. Nasdaq had closed on a 2.26 percent drop on Monday, with the Dow Jones industrial average off 1.42 percent. It was the worst September since the Great Depression for U.S. markets. (Full story) Singapore's Straits Times index is essentially flat, down 0.02 percent at 4,162.77 in late afternoon going. OCBC Bank is up 1.0 percent to S$9.70. But United Overseas Bank is flat after morning gains, as is Southeast Asia's largest bank, DBS Group. Chartered Semiconductor is not joining its Taiwanese memory-chip rivals on the road north. The stock is flat at S$0.99, still suffering from the company's decision to issue $633 million in rights at S$1.00.
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