Japan's Topix rises as Asian techs fall


Japan's broad Topix index shook off the WorldCom shock and traded up on bank stocks despite tech losses on the Nikkei

HONG KONG, China -- Japan's broad Topix index closed up on Monday despite the shock of WorldCom's bankruptcy. But other Asian markets fell.

The U.S. telecom company and Internet carrier went broke on Sunday, making it the largest bankruptcy in U.S. history (full story).

That sent Japan's tech-driven Nikkei slightly lower. It ended off 0.13 percent at 10,189.01.

But Japan's market came back from five-month lows, with the Nikkei recovering from below 10,000 in morning trade.

The Topix more than held its ground. The index ended up 0.17 percent at 991.44, confounding a generally gloomy day's trade in Asia.

Other Asian markets finish down

South Korea was the biggest loser. Its Kospi index gave up 4.5 percent to close at 720.90, its lowest since January 21.


A Tokyo Stock Exchange worker makes sense of the action, which saw stocks sell off in the morning and bargain hunters move in by the close

Taiwan's market dropped 2.3 percent. Hong Kong's Hang Seng fell 2.2 percent.

Australia's market ended down a little over 0.5 percent, and New Zealand dropped 1.9 percent. Singapore is down a similar amount heading into its close.

Asia Pacific stock markets did not match the Dow Jones industrial average's 4.6 percent collapse on Friday.

That led the head of the New York Stock Exchange, Dick Grasso, to warn Monday probably will not be a happy day for U.S. bulls.

"Mondays following Friday declines have always been difficult, and I suspect tomorrow will be no different," he said on a Sunday television show on NBC.

Banks up in Tokyo

In Tokyo, the market saw support from banks. Mitsubishi Tokyo Financial Group, often cited by analysts as Japan's fittest big bank, climbed 3.5 percent to 860,000 yen.

Analysts said Japan's banks will likely not suffer a particularly strong effect from the selloff elsewhere in the world.


Australia felt a downdrag from News Corp., but its leading telecom, Telstra, held firm in heavy trade

Japan got a boost from its all-industries index, up 1.1 percent for May, compared with April. The index is well-watched as a guide to Japan's economy (full story).

Technology stocks gave ground in Tokyo, though. Sony Corp. fell 2.5 percent to 5,390 yen, extending its 4.7 percent fall on Friday.

Hitachi dropped 1.75 percent to 731 yen. Toshiba dropped 1.2 percent to 489 yen. Both companies are expected to post better operating profit for the first quarter (full story).

The pressure from the yen has eased slightly, with markets watching for further steps from the central Bank of Japan to weaken it.

Korean stocks feel the pinch

The yen stands at 116.31 to the U.S. dollar in late Tokyo trade. The Korean won stands at 1,165.4 at the close of trade in Seoul.

Korean stocks finished down 4.5 percent, the heaviest losses in Asia, leaving the Kospi at 720.90.

One fund manager with Shinhan Investment Trust & Management told Reuters news agency the day was "disastrous."

"I was on the buy side as we had expected the market to recover from an early drop," Jung Kyeun-sik said.

Big-cap stocks and fund favorites such as Samsung Electronics started down -- and finished there. It fell 3.4 percent to 330,000 won.

Cell-phone company SK Telecom ended down 4.1 percent to 245,000 won. Steelmaker POSCO was one of the few gainers, up 1.5 percent to 135,000 won.

Chips down in Taiwan

The story was similar in Taiwan, though the Taiex mapped Nasdaq fairly closely. Taipei's main index fell 2.3 percent to 5,043.50.

TSMC dropped 1.6 percent to T$60.50. UMC fell 4.7 percent to T$36.60.

The chip foundries dominate the market and typically run in synch with chip stocks in the United States.

Australia's S&P/ASX 200 index dropped 0.64 percent to 3,089.4. News Corp. gave substantial ground, down 5.4 percent to A$9.27.

That brings it to four-year lows, the same point as the Dow.

Telecom company Telstra dominated the trading volume-wise, but the company ended down just 0.2 percent at A$4.74.

A tale of two telecoms Down Under

Telecom New Zealand fared worse, across the Tasman. It eased 2.47 percent to NZ$4.74.

That brought the Top 40 down 1.9 percent to 2,008.34.

Hong Kong's Hang Seng index ended down 2.08 percent at 10,110.25. That's a nine-month low close.

Bank stock HSBC finished down 1.42 percent at HK$86.50.

Hong Kong broadly down

Its smaller rival Bank of China Hong Kong priced its stock offering at the high end of its range but one fund manager told CNN it would be unlikely to sustain that level (full story).

Li Ka-shing's flagship Cheung Kong Holdings ended down 2.77 percent at HK$61.25. Airline Cathay Pacific lost 1.64 percent to HK$11.85.

Computer maker Legend Group fell particularly hard, down 5.2 percent to HK$2.75.

Singapore's Straits Times index is down 1.67 percent at 1,534.12 in late trade. Chartered Semiconductor and other techs are selling off there.