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Selloff sends Tokyo to 20-year low
By Alex Frew McMillan
HONG KONG, China (CNN) -- Asian stocks are falling again on Thursday, prompted by pessimism over the global political picture and another decline on Wall Street. Japanese stocks are also being hurt by the weakening dollar, driving the value of the yen up and hitting profits for exporters. The Nikkei average fell 0.68 percent in morning trade to break for lunch at 8,299.91, which would be a fresh 20-year closing low if that level is sustained by the end of the day. The Nikkei closed at 8,303 in November, its worst showing in two decades. But the index is still above its intraday 20-year low of 8,197.22 seen on October 10 last year. The broader Topix is down 0.67 percent to 812.90 as stocks slide across the board. The picture is no different elsewhere in Asia, with South Korean stocks facing the heaviest selling, down almost 2 percent. Hong Kong, the region's second-biggest market after Tokyo, is holding up the best but is still in the red to the tune of 0.2 percent. Australia is down almost 1 percent, while Taiwan is a third of a percent lower. New Zealand closed down a similar amount. Singapore is off three-quarters of a percent, with neighboring Malaysia off a third of a percent. Wall Street made it two down days out of three on Wednesday, with the Dow Jones industrial average falling 1.3 percent to 7,806.98 and Nasdaq giving up 1.9 percent to 1,303.68. (U.S. roundup) Yen pressure in TokyoIn Tokyo, the market is seeing broad-based selling prompted by global uncertainty and currency pressures. The yen stands at 117.09 to the U.S. dollar early on Thursday afternoon, its strongest level in six months. The dollar has been weakening ahead of likely war with Iraq.
That is knocking exporters such as Sony Corp., down 0.44 percent to 4,480 yen, and Toyota Motor, off 0.88 percent to 2,800 yen. Big shippers of goods see their prices go up as the yen advances, while their profits shrink when sent back to Japan. Bank stocks are also lower, with Mizuho Holdings down 0.5 percent to 99,500 yen. The world's biggest bank by assets was rattled Wednesday when one of its borrowers, theme park operator Huis Ten Bosch, become one of Japan's biggest resort bankruptcies. (Full story) Bank competitor Sumitomo Mitsui Financial Group is down even more, off 3.48 percent to 27,700 yen, as banks prepare to close their books on the fiscal year on March 31. Cell-phone service KDDI is one of the few gainers, up 0.55 percent to 367,000 yen. Advertising giant Dentsu is also up 0.55 percent, to 364,000 yen. Honda Motor, which has suffered while its peers rose earlier this week, is also bucking the trend with a 0.47 percent climb to 4,240 yen. Hong Kong is holding up relatively well, down just 0.17 percent to 9,101.10. Bank stock HSBC is marginally lower, down 0.30 percent to HK$83.00, ahead of its earnings on Monday. There are gains for Hong Kong-focused stocks after the city unveiled a plan to ease restrictions on skilled workers moving in from mainland China. That is driving housing developer and subway operator MTR Corp. up 1.75 percent to HK$8.70, while mall operator and developer Swire Pacific is ahead 0.92 percent to HK$32.90. Oil producer CNOOC is moving forward again as war looms in the Persian Gulf. CNOOC is up 0.95 percent to HK$10.60. Earnings drive SydneyAustralia's S&P/ASX 200 index is down 0.87 percent to 2,802.4 with the volume topped by telecom company Telstra Corp.
Australia's second-largest listing is down 1.67 percent to A$4.11 after posting a 44 percent drop in first-half profit, though it increased its dividend. Australia's biggest fund manager and life insurer, AMP, is down 5.45 percent to A$7.29, another record low, after it posted an A$896 million loss this week. (Full story) Mining giant BHP Billiton is down 0.43 percent to A$9.26, though there are gains for its BHP Steel spinoff, up 1 cent to A$3.44 after unveiling a first-half profit at the top of forecasts. News Corp. is down 2.31 percent to A$10.14, with little to cheer bullish investors in Sydney. New Zealand's Top 40 closed down 0.32 percent at 1,869.43, with Telecom New Zealand steady at NZ$4.26. Taiwan's Topix is off 0.37 percent to 4,440.16, after hitting a four-month low soon after the open. China Steel is topping the volume with a 2.71 percent slip to T$21.50. On the tech side, chip foundries are also lower, UMC down 0.51 percent to T$19.60 and TSMC off 1.64 percent to T$42.10. Screenmaker Au Optronics is down 0.88 percent to T$22.50. Banks are also seeing selling. South Korea's Kospi is off 1.72 percent to 580.12, on security worries. Samsung Electronics, the largest listing, is down 2.8 percent to 276,000 won in early afternoon, with No. 2 listing SK Telecom off 2.33 percent to 168,000 won. Korea's largest lender, Kookmin Bank, is down 3.4 percent to 38,300 won, reflecting concerns about Korea's domestic economy as well as its major exporters. Singapore's Straits Times index is off 0.75 percent to 1,277.45, as the city reports growth of 2.2 percent for the year. (Full story) DBS Group is down 1.02 percent to S$9.70. Rival bank OCBC is off 1.12 percent to S$8.85. Fears of waning tourism are driving Singapore Airlines down 1.05 percent to S$9.45. Malaysia's market is also lower, with the Kuala Lumpur composite off 0.33 percent to 648.57.
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