Tokyo techs lead Asian falls
TOKYO, Japan -- Tokyo stocks are lower Tuesday after high-technology shares suffered on Wall Street. The dollar is higher against the Japanese yen.
Tech-related shares such as Tokyo Electron, NEC and Hitachi are showing falls of around 2 percent.
The Nikkei 225 Stock Average is down 0.5 percent, to 11,524.0 at the end of the morning session. On Monday, the benchmark rose 158.75 points, or 1.39 percent.
The broader Topix index of all issues on the Tokyo Stock Exchange's first section is down just 0.09 percent to 1160.61. The Topix had gained 1.29 percent on Monday.
Other Asian markets are also in the red, though falls are muted. Taiwan is showing the biggest change, down 1.1 percent. South Korea is off 0.6 percent.
Singapore and New Zealand are both about a quarter of a percent lower and Australia is down 0.14 percent.
The dollar is quoted at 108.60 yen in Tokyo Tuesday morning, up 0.88 yen from late Monday and above the 108.23 yen it bought in New York later that day.
On the stock market, shares fell after an analyst downgrade of the semiconductor sector precipitated a decline by U.S. high-technology issues Monday on Wall Street.
Major losers in Tokyo include semiconductor testing device maker Advantest, Kyocera and Tokyo Electron, which is down 2.2 percent to 5570 yen.
But big automaker Toyota has put on 2.5 percent to 4450 yen.
Real estate shares are firm, while bank shares are mixed. Mizuho Holdings is up 0.22 percent to 456,000 yen.
In New York Monday, the technology-focused Nasdaq composite index fell 9.41, or 0.5 percent, to 1,936.92. The Dow Jones industrial average gained 25, or 0.2 percent, to 10,238.22 after drifting in negative territory most of the day.
Merrill Lynch cut its rating on the semiconductor sector from "overweight" to "underweight," citing lower-than-expected demand for both personal computers and corporate hardware.
The firm also downgraded Intel Corp. a day before it was due to release its earnings. The Philly Semiconductor index lost more than 2 percent after the downgrade.
Japan's stock market had closed higher on Monday as investors showed more optimism following the outcome of Sunday's upper house election.
Analysts said Sunday's electoral performance by Prime Minister Junichiro Koizumi's ruling Liberal Democratic Party-led coalition was better than expected.
Despite the LDP being beaten 49-50 by the opposition Democratic Party of Japan, the coalition has retained its majority in the upper house.
Elsewhere in Asia, the Kospi in South Korea is down 0.6 percent to 741.78.
SK Telecom is extending Monday's losses, slipping another 2.3 percent. Leading exporter Hyundai Motor is up 0.12 percent to 42,950 won.
The market's biggest stock, Samsung Electronics, is virtually unchanged at 424,000 won.
In Australia, the S&P/ASX200 is down 0.14 percent to 3555.0. Resources leader BHP Billiton is steady but media giant News Corp is off 0.33 percent.
Woolworths is 0.43 percent firmer at A$11.56 after the board of takeover target ALH said Monday it would recommend against a hostile bid by the retailer and another party. (Full story)
Taiwan's Taiex is off 1.1 percent to 5695.24 and New Zealand's Top 50 is 0.28 percent lower at 2682.31.
In Hong Kong, the Hang Seng index is unchanged at 12,191.01 and Singapore's Straits Times index is down 0.25 percent to 1866.24.
The Singapore government released figures Monday morning showing the island state's economy grew at an annualized rate above 9 percent in the second quarter. (Full story)
