Earnings news casts a dark cloud

ASIAN stocks were battered on all fronts as poor domestic earnings news added to the overnight depression on Wall Street and Nasdaq and apprehension about further terrorist attacks on the US.

Tokyo stocks dived more than 1.5% as a wave of bad economic indicators and disappointing earnings washed over the market, while Nasdaq's tumble of nearly 4% wiped about 3% off markets in South Korea and Taiwan.

Japan's Nikkei 225 Average slid 99.49 points to close at 10,512.82 on growing evidence that the relative weakness of the yen this year has not been enough to offset plunging demand for computer components and consumer electronics.

Canon, the copiers-to-cameras giant, fell by more than 7% after failing to meet profit forecasts, while electronics giant Hitachi fell almost 3% on reports that profits due today would be sharply below forecasts. Record jobless figures of 5.3%, and a plunge of more than 1% in consumer spending, added to the selling pressure.

Hong Kong stocks followed Wall Street's lead, and were further depressed by forecasts from an International Monetary Fund spokesman at an Asian Economic Summit meeting that the economy would take one of the biggest hits in the region this year.

The Hang Seng index wilted 48.17 points to 10,129.92, as local investors reckoned that the recent rally had lost its impetus.

Taiwan's Weighted Average plunged straight through the 4000 support level from the beginning of trading as investors rushed to take profits while they could. The index lost 149.49 points to 3915.61 as falls in recently strong defensive blue-chips added to the slide in the volatile semiconductor sector, where losses were around 4%. Insurance giant Cathay Life led other stocks down with a 6% fall. After watching shares rise steadily for seven days in a row, South Korean investors could not resist the temptation to cash in, and in a bumpy morning's trade the Kospi lost 13.63 points to 534.24.

A refusal by Korea Exchange Bank to advance more money to the crumbling Hynix Semiconductor group sent shock waves through other bank shares where losses ranged up to 2%.

A late-morning recovery in News Corporation shares saved Sydney stocks from a general beating, and the All Ordinaries fell 2.4 points to 3187.4.

News Corporation shares made up most of an early 3% fall as theorists decided that the battle for the US DirecTV satellite business may not be lost.

Apparent winner EchoStar might run into regulatory problems, suggested pundits, leaving the way open for a lower bid from Rupert Murdoch.

Singapore's top technology-stocks were battered by Nasdaq's slide, while top blue-chip Singapore Airlines continued to dive, losing a further 5% after yesterday's 10% slump.

With falls of up to 3% among computer chipmakers, the Straits Times index lost 24.63 points to 1369.11.

Other South-East Asian markets took their cue from New York's performance, although losses were limited in subdued trading. Thailand's SET index slipped 2.6 points to 275.56, in Malaysia the Kuala Lumpur Composite traded down 2.12 points to 603.68, while in Indonesia the Jakarta Composite was down 5.61 points to 378.72.

Prices and indices in this report are from various sources and calculated at different times and may not always match those listed elsewhere on the site.