Tokyo recovers from early falls
(CNN) -- Tokyo stocks recovered to close slightly higher Tuesday after early falls that followed the decline among high-technology shares on Wall Street.
The dollar is higher against the Japanese yen.
Tech-related shares such as Tokyo Electron, NEC and Hitachi showed falls of around 2 percent.
The Nikkei 225 stock average finished virtually flat, up 26 points or 0.2 percent to 11,608.62 after a dip of about half a percent in the morning.
On Monday, the benchmark rose 1.39 percent.
The broader Topix index of all issues on the Tokyo Stock Exchange's first section was up 0.4 percent to 1166.47. The Topix had gained 1.29 percent on Monday.
Other Asian markets are mixed with moves in either direction muted. Taiwan and Hong Kong are showing the biggest changes, both down more than 1 percent. South Korea is up 0.4 percent.
Singapore is about 0.2 percent ahead, Australia is flat and New Zealand closed 0.3 percent lower.
The dollar is quoted at 108.64 yen in Tokyo Tuesday afternoon, up 0.9 yen from late Monday and above the 108.23 yen it bought in New York later that day.
On the stock market, shares initially fell after an analyst downgrade of the semiconductor sector precipitated a decline among 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 1.75 percent to 5600 yen.
But big automaker Toyota put on 2.5 percent to 4450 yen.
Real estate shares were firm, while bank shares were mixed. UFJ rose 2.8 percent to 470,000 yen and Mizuho Holdings is up 1.75 percent to 465,000 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. It also downgraded Intel Corp. a day before it was due to release its earnings.
On Monday, Japan's stock market had closed higher 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 0.41 percent to 749.36.
SK Telecom is extending Monday's losses, slipping another 3 percent. Leading exporter Hyundai Motor is up 2 percent to 43,800 won.
The market's biggest stock, Samsung Electronics, is 1.7 percent higher at 430,500 won.
In Australia, the S&P/ASX200 is steady at percent to 3557.9. Resources leader BHP Billiton is firmer but media giant News Corp is off 0.25 percent.
Woolworths is 0.3 percent firmer at A$11.55 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 1.27 percent to 5685.57 and New Zealand's Top 50 closed 0.3 percent lower at 2681.90.
In Hong Kong, the Hang Seng index is off about 1.2 percent to 12,036.62 and Singapore's Straits Times index is up 0.17 percent to 1873.99.
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)
