Tokyo drops on tech weakness
(CNN) -- Tokyo stocks closed sharply lower Wednesday amid big falls for techs after Intel's earnings announcement.
The Nikkei 225 lost more than 2 percent.
That was despite hefty gains for Japanese banks after UFJ said it would enter merger talks with Mitsubishi Tokyo Financial Group.
Most other Asian markets also were in the red, with Australia down sharply after a profit warning from leading bank NAB. South Korea lost almost 2 percent.
The dollar was higher against the Japanese yen.
The Nikkei 225 gave up early gains to finish 2.17 percent lower at 11,356.65. On Tuesday the benchmark rose 0.23 percent.
The broader Topix index of all first section issues on the Tokyo Stock Exchange fell 1.28 percent to 1151.49. The Topix gained 0.41 percent on Tuesday.
Banking shares were up after UFJ Holdings said it planned to ask MTFG to start merger negotiations. (Full story)
MTFG is Japan's second-largest bank and one of its healthiest. UFJ, which reported a $3.7 billion loss last financial year, is Japan's fourth-largest bank. A merger would create the world's biggest banking group with assets of $1.7 trillion.
Their shares were initially suspended Wednesday morning. After trading resumed, UFJ closed 10.6 percent higher at 522,000 yen and MTFG rose 7.4 percent to 1.03 million yen.
Rival SMFG put on 1.4 percent to 724,000 but Mizuho lost about 0.6 percent.
The market's biggest decliners were tech-related stocks, with Tokyo Electron and Advantest both dropping more than 4 percent. Kyocera lost 4.5 percent to 8590, while Fujitsu and Toshiba finished 3.1 percent lower.
Japan's biggest carmaker, Toyota Motor, ended 2.7 percent in the red at 4350 yen.
In New York Tuesday, Wall Street closed narrowly mixed. The Dow Jones industrial average rose 0.1 percent to 10,247.59 and the Nasdaq fell 0.27 percent to 1931.66. (Full story)
After the close, the world's No. 1 chipmaker, Intel, reported it had almost doubled second-quarter earnings. (Full story)
The dollar is quoted at 108.59 yen Wednesday, up 0.07 yen from late Tuesday but below the 108.85 yen it bought in New York later that day.
Elsewhere in Asia, the Kospi in South Korea finished down 1.91 percent to 736.57.
Leading exporter Hyundai Motor gave up early gains to drop 3 percent to 42,100 won. The market's biggest stock, Samsung Electronics, closed down 3.6 percent to 418,000 won.
In Australia, the S&P/ASX200 ended down more than 1 percent to 3522.8, its biggest one-day fall since May 10.
Leading bank NAB plunged 6.9 percent to A$28.85 after warning its second half earnings will be sharply lower. (Full story)
Resources leader BHP Billiton fell about 1 percent and media giant News Corp was off 0.7 percent to A$12.02.
Taiwan's Taiex finished 1.09 percent lower to 5623.65, with big falls for techs such as Via and Asustek.
New Zealand's Top 50 closed flat, down just 0.1 percent at 2678.94.
In Hong Kong, the Hang Seng index is off 0.23 percent to 12,050.96.
Singapore's Straits Times index is down 0.35 percent to 1871.65 heading towards the close.
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)
