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Asia trims losses to end slightly off
By Alex Frew McMillan
HONG KONG, China (CNN) -- Asian stocks closed lower on Thursday, though the selling was restrained and most markets rallied in the afternoon. Outside Taiwan, the losses didn't approach Wednesday's declines on Wall Street, where the market slid around 1.5 percent. Japan's Nikkei average ended flat, with a loss of 0.03 percent, at 8,609.17. But stocks trimmed their slide in the afternoon session. There were gains for the Topix index, where bank stock advances helped it 0.07 percent higher to 856.30. Australia and New Zealand both ended down a little, while Hong Kong slid more than 1 percent. Singapore ended off half a percent. Taiwan turned around after posting gains in morning trade to register the largest losses in the region, down almost 1.5 percent. But South Korea was a mirror image, coming back from early losses to end just in the black. Malaysian stocks also moved higher on the day. U.S. investors reacted skittishly as the earnings season started on Wall Street. They ignored Intel's increased profits and instead focused on its plans to cut capital spending. The Dow Jones industrial average fell 1.35 percent to 8,723.18, while the tech-driven Nasdaq dipped 1.52 percent to 1,438.80. (U.S. roundup) Investors also saw earnings from Yahoo and losses from Apple Computer. Tokyo rallies in afternoon tradeIn Japan, stocks came back in afternoon trade after sinking at the open. Tokyo's largest listing, NTT DoCoMo, came back from losses approaching 1 percent to end flat at 256,000 yen. Investors were digesting a report that DoCoMo will offer subsidies worth some $339 million to manufacturers to make handsets for its flagging "third-generation" cell-phone service. Chip and computer maker NEC Corp. finished down 0.45 percent to 447 yen as techs saw a little weakness.
But there were strong gains for banks, with No. 4 UFJ Holdings jumping 4.88 percent to 129,000 yen and Mitsubishi Tokyo Financial Group leaping 5.29 percent to 716,000 yen. Sumitomo Mitsui Banking Group ceded its early ground to end up just 1.11 percent to 363,000 yen. U.S. investment bank Goldman Sachs said it will invest more than $1 billion in Japan's No. 2 bank. (Full story) The investment did boost companies that depend heavily on bank loans. Trading house Itochu Corp. jumped 9 percent to 289 yen on the promise of easier funding. The yen is trading stronger at 117.88 as European trade begins. That dented exporters such as Sony, down 0.2 percent to 4,990 yen, and Toyota Motor, off 0.96 percent to 3,090 yen. Traders are watch how new currency guru Zembei Mizoguchi will treat the currency. Mizoguchi says he will continue the policy set by predecessor Haruhiko Kuroda, which often saw Japan intervene to ensure the yen didn't get too strong. Hong Kong heeds Wall StreetIn Hong Kong, the Hang Seng index doubled its losses in afternoon to end off 1.32 percent to 9,743.23, reflecting the Wall Street selling. Garment exporter and trading house Li & Fung fell 3.55 percent to HK$8.15, with most of its sales coming in the United States.
Motor maker Johnson Electric ended down 1.02 percent to HK$9.75, having proved resilient in early going after strong U.S. auto sales hinted at consumers resilience. Bank stock HSBC was down 1.4 percent to HK$87.75, while Cheung Kong Holdings dropped 2.78 percent to HK$52.50. Airline Cathay Pacific fell 1.28 percent to HK$11.60, with the airline also ordered by Hong Kong transport authorities to conduct public hearings over its dispute with Dragonair, though both companies hoped to negotiate behind closed doors. Mergers dominate Sydney tradeAustralia's S&P/ASX 200 index ended down 0.67 percent at 3,056.3, little changed in afternoon trade. Takeover bids helped prop the market. News Corp. fell 2.6 percent to A$12.30 after Wall Street's fall. But resources-heavy Sydney is generally insulated from the sharpest moves.
Mining company MIM Holdings topped the volume with a 1.91 percent rise to A$1.60 on reports that Swiss metals company Xstrata Plc is looking at a takeover bid. Another takeover target, winemaker BRL Hardy, also advanced, ending up 3.85 percent to A$9.44 as talks continue with Constellation Brands. Food group Goodman Fielder closed up 1.73 percent to A$1.76 after Burns Philp said it has raised A$1.52 billion in funding to back its takeover bid. Oil and mining concern BHP Billiton ended down 1.62 percent to A$9.72 despite the North West Shelf project, in which it is a partner, lining up a long-term deal to supply gas to South Korea. (Full story) New Zealand's Top 40 closed down 0.23 percent at 2,010.62 as Telecom New Zealand slipped 1.28 percent to NZ$4.64. Taiwan turns sharply aroundTaiwan's Taiex rose at the open but sank to register the heaviest losses in Asia, down 1.48 percent to 4,943.29 and backing off a five-month high. Chip foundry UMC dropped 3.04 percent to T$22.30, while TSMC fell 3.76 percent to T$48.60. The two stocks together make up around 12 percent of the market. China Steel dropped after early gains, finishing with a 2.53 percent loss to T$23.10. But there were gains for banks such as Hua Nan Financial, up 1.87 percent to T$27.20. Chang Hwa jumped the daily 7 percent limit to T$18.50. Chung Hwa Pulp was up the daily 7 percent limit for the third day in a row, to T$18.20, as local plays continue to draw some interest. Samsung sparks Seoul rallyIn South Korea, the Kospi rallied from morning losses to end up 0.06 percent at 648.69. Chipmaker Samsung Electronics, Seoul's largest listing, started out with heavy losses as it reported earnings. But it ended with a 1.85 percent rise to 330,000 won as investors paid more attention to its profit leap, rather than it missing forecasts. (Full story) Steelmaker Posco fell 3.40 percent to 128,000 won after announcing earnings that were slightly below expectations, a fourth quarter net profit of 364.9 billion won ($312 million) off sales of 3.19 trillion won. State-owned gas company Kogas ended up 1.79 percent to 22,700 won after it said it will sign a long-term deal to buy gas from Australia's North West Shelf. (Full story) It also announced that it is in talks on a deal to buy gas from Malaysia's Petronas. New chief no boost to SIASingapore's Straits Times index ended down 0.51 percent to 1,379.52 as techs slipped in line with Nasdaq. Singapore Airlines finished off 0.94 percent to S$10.50, despite naming its executive Chew Choon Seng as CEO to replace Cheong Choong Kong, who is retiring in June. (Full story) The Malaysian market made it five straight days of gains, with the Kuala Lumpur composite closing up 0.29 percent to 670.14.
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