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Asia falls on gloomy Korean outlook
HONG KONG, China (CNN) -- Asian markets closed generally lower Tuesday after South Korea's outlook was hit by a downgrade. Ratings agency Moody's Investors Service said it was switching South Korea's long-term outlook from positive to negative because of security concerns over North Korea. Seoul's Kospi had opened the day almost 1 percent higher. But it soon turned down and dipped 0.22 percent, or 1.27 points, to finish at 575.98, a 15-month closing low. Australia, Taiwan and Hong Kong also finished in the red. The largest Asian market, Japan, was closed Tuesday for a national holiday. Singapore closed up just over 1 percent, and neighboring Malaysia also made it into the black. New Zealand was another gainer, putting on 0.6 percent. U.S. markets arrested their slide on Monday, with some signs that war might still be averted in the Gulf. Nasdaq jumped 1.11 percent to 1,296.68, while the Dow Jones industrial average advanced 0.71 percent to 7,920.11. (U.S. roundup) Hong Kong losing groundIn Hong Kong on Tuesday, the Hang Seng closed down 0.40 percent at 9,194.91, giving up morning gains.
Developers were generally up, with Sun Hung Kai Properties adding 0.90 percent to HK$44.80. Hutchison Whampoa surrendered early ground and ended flat at HK$48.00 after the company said it will sell $1 billion in 10-year bonds. There were declines for HSBC, off 0.60 percent to HK$82.25, with Bank of China off 0.62 percent to HK$8.05. Telecom PCCW was down 0.84 percent to HK$5.90 after the company said it has abandoned efforts to buy British phone No. 2 Cable & Wireless. (Full story) Investors were disturbed by the company's conflicting statements over its interest in C&W and are also worried it is now on another buying spree instead of cutting its debt. Foster's sinks in SydneyIn Sydney, the S&P/ASX200 dipped 0.39 percent to 2,879.0, with gold stocks giving ground. Lihir Gold lost more than 4 percent to A$1.41. Beer and wine group Foster's dipped 0.68 percent to A$4.37 after reporting a 4.1 percent lift in first-half profit to A$335.3 million, slightly below analysts' expectations. (Full story)
But there were gains for Australia's biggest stock, News Corp., up 1.01 percent to A$11.01 and No. 2 Telstra, up 1.86 percent to A$4.38. Troubled insurer and funds group AMP slipped again, down 2.3 percent to A$8.50 on fears it might see ratings agency downgrades. Commonwealth Bank was down 1.37 percent to A$25.89 ahead of earnings on Wednesday. New Zealand's Top 40 index closed up 0.6 percent at 1,959.58, with Telecom New Zealand up 0.67 percent at NZ$4.52. New Zealand's largest listed power company, Contact Energy, jumped 4.93 percent to NZ$4.47 as the company said it will raise $302 million in debt in the United States, as well as upgrade a power plant. (Full story) Taiwan extends losing streakIn Taiwan, the Taiex extended its string of sharp losses with a 0.54 percent fall to 4,618.98. But its largest two listings moved up after Nasdaq advanced, with chip foundry TSMC up 1.97 percent to T$41.50 and UMC ahead 0.52 percent to T$19.40. Au Optronics was down 2.92 percent to T$23.30 in heavy trade and Chunghwa Telecom lost 3.5 percent to T$55. China Steel was among the heaviest in volume terms, down 2.16 percent to T$22.70. Seoul turns around on ratings downgrade
In Seoul, the Kospi fell 1.27 percent to 575.98, turning around sharply after rating service Moody's downgraded the country's outlook. (Full story) But South Korea's biggest stock, Samsung Electronics, managed to hand on, closing 0.74 percent higher at 271,500 won. Big exporter Hyundai Motor also rose, up 2.32 percent to 26,500 won. There were gains too for the country's biggest bank, Kookmin Bank, up 0.49 percent to 40,900. But Chohung Bank fell 3.24 percent and Shinhan Finance lost almost 2 percent to 1,400 won. Steelmaker Posco eased 0.4 percent to 124,500 won and Hynix Semiconductor fell 2.17 percent to 225 won. Singapore showing Asia's gainsIn Singapore, the Straits Times index closed up 1.03 percent at 1,295.97, the strongest gains in Asia. Creative Technology ended ahead 1.83 percent to S$11.10 after Nasdaq drove forward. Banks also arrested Monday's losses, UOB trading up 1.92 percent to S$10.60. Singapore Airlines zoomed ahead 2.07 percent to S$9.85, though airline investors are still watching for fuel prices to rise if war breaks out in Iraq. Malaysia's market edged into positive territory in the afternoon, the Kuala Lumpur composite index closing up 0.23 percent at 659.95. Tokyo's market resumes Wednesday after the National Foundation Day holiday on Tuesday.
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