Poo!
Tech tumble drags Tokyo down
Dollar touches 132-yen level on Kuroda's remark
By Mariko Ando, CBS.MarketWatch.com
Last Update: 11:02 PM ET Jan 7, 2002
TOKYO (CBS.MW) - Tokyo stocks dropped by midday Tuesday as investors locked in profits on export-oriented technology issues, despite the yen's weakness against the dollar.
The leading Nikkei Average fell 185.88 points, or 1.7 percent, to 10,756.48 at midday. The index has gained 7.4 percent, or over 700 points, over the past four sessions, mainly due to rising hopes for a recovery in U.S. economy.
Renewed selling in the bank sector also dampened the overall market sentiment, dragging down the broader Topix by 1.6 percent to 1,038.36.
Investors sold leading technology issues despite the yen's weakness against the dollar. The yen sank against the dollar late in the morning session after a government official indicated toleration of a weaker yen.
Haruhiko Kuroda, vice finance minister for international affairs, said that the currency rate "should mirror market fundamentals," adding that the today's market is "correcting from a level (which exceeded the appropriate situation)."
Following Kuroda's comment, the dollar strengthened to as much as 132.05 yen before easing slightly to trade at 131.82 yen in the late morning in Tokyo. The U.S. currency was quoted at 131.15 yen in New York late Monday.
Japan's technology bellwether Sony (SNE) (6758) lost 1.9 percent to 6,350 yen and shares of NEC (NIPNY) (6701) tumbled 3.6 percent to 1,386 yen. Canon (CAJ) (7751) sank 3.6 percent to 4,620 despite hopes that a weak yen would boost these exporters' overseas revenues.
Market sentiment also was hurt by weakness in U.S. stocks. In New York on Monday, the Nasdaq fell 1.1 percent while the Dow sank 0.6 percent.
Japan's debt-ridden banks also saw their shares fall. Shares of UFJ Holdings (8307) dropped 2.9 percent to 304,000 yen and Mizuho Holdings (8305) lost 1.1 percent to 283,000 yen. Shares declined despite hopes that the government might inject public funds into these banks to avoid a financial crisis in the country's banking system.
Seoul stocks retreat, Taiwan extends gains
In South Korea, the benchmark Kospi fell 1 percent to 744.16 points by late morning.
Hynix Semiconductor (HXSCF) led decliners, falling 3.2 percent to 2,770 won. Hynix shares had gained more than 35 percent since late December on hopes the ailing chipmaker would announce a strategic alliance with Micron Technology of the U.S. A negotiation team from Micron (MU) reportedly is to visit South Korea next week regarding the proposed alliance.
Other chip-related issues also lost ground following a decline in their U.S. peers. Semiconductor-parts maker Mirae (MRAE) fell 0.2 percent to 2,760 won while those of Samsung Electronics lost 1.3 percent to 314,000 won.
Taiwan stocks remained bullish, building on the previous day's nine-month closing high. By midmorning, the Weighted Index advanced 0.6 percent to 5,568.94.
Rising expectations for a recovery in the technology sector has been boosting Taipei's stock prices. On Monday, the benchmark index ended at its highest level since March 27, 2001, renewing a nine-month high for a third straight day.
Shares of Powerchip Semiconductor (PWSMF) jumped 2.4 percent to NT$26.10. The company's Chairman, C.J. Huang, said he is confident that the island's DRAM industry will remain competitive for the next three to five years, according to local media reports.
Among other chip-related issues, Macronix International (MXICY) advanced 0.4 percent to NT$28.20. Winbond Electronics (WBEMF) was up 0.8 percent at NT$26.10. But Taiwan Semiconductor Manufacturing (TSM) lost 1.6 percent to NT$91.
Hong Kong's Hang Seng Index was down 101.37 points, or 0.9 percent, at 11,791.27 points in early trade.
Sydney flat
Australian stocks were little moved as gains in some cyclical issues failed to offset weakness in the technology sector. Early in the afternoon session, the All Ordinaries Index was standing virtually flat at 3,384.60 points.
Bucking an overall quietness, world mining giant BHP Billiton (BHP) jumped 1.2 percent to A$11.37. Credit Suisse First Boston said BHP Billiton is one of five companies that it favors for 2002. Gold producer Normandy Mining (NMDMF) was up half a percent at A$1.86.
But Looksmart (LOOK) tumbled 6.9 percent to 14 cents.
In New Zealand, the key NZ Top 40 inched down 0.1 percent to 2,086.30 points. Singapore's Straits Times Index was trading 0.8 percent higher at 1,709.06 points in midmorning trade. |
