Tokyo has attack of industrial nerves

JAPANESE stocks suffered the worst week's trading in a month. Today's fall in the Nikkei 225 Average was only 0.84 points to 9619.3, but the market has now dropped more than 3.5% over the past five trading days.

Buoyant second-quarter economic growth was offset by dimming industrial output and retail sales, and a downward revision of first-quarter gross domestic product from 1.4% growth to zero.

Other Asian markets were mixed as technology stocks continued to slide in the face of a worsening outlook for personal computers and component sales. Early falls in Tokyo were narrowly reversed in thin trading after figures showed that Japan's GDP grew 0.5% in the second quarter, but concern that the rise in the value of the yen this year will stall exports kept investors nerves on edge.

A 5.3% fall in July retail sales hit the stores sector where shares of Ito-Yokado, Japan's largest retailer, lost almost 3%. Worries that the falling consumer spending will hit the use of mobile phones triggered falls of more than 2% among major operators.

The biggest casualty was the Softbank internet venture-capital giant, a former high-flier. Its shares dived more than 7% after the company revealed it was cutting its stake in Yahoo! from 14% to 9%. Plans to switch the $270m (£174m) proceeds to a broadband venture dismayed investors who had seen Yahoo! as a long-term winner.

Hong Kong's market was narrowly ahead after takeover action boosted hotel stocks but, with little direction from a slack overnight session on Wall Street, the gain on the Hang Seng index was limited to a rise of 12.6 points to 10,073.75.

Grand Hotel shares soared more than 100% following a bid by the Hang Lung property developer for outstanding shares in the group. Bank of China shares continued to build above their recent HK$8.50 offer price, and reached HK$8.65 on confirmation that the group is to be included in the Morgan Stanley Capital International index for Hong Kong. Trade was subdued ahead of second-quarter GDP figures due after the market closed.

Some finely targeted foreign buying of South Korean stocks boosted the Kospi index 8.5 points to 733.44. Top movers included telecoms provider KT, which jumped 2.5% after the company announced a share buyback plan, and LG Electronics, the leading consumer goods brand, which added almost 3%.

Taiwan tech stocks failed to gain inspiration for a firm overnight performance on Nasdaq, and the Weighted Average dropped 35.69 points to 4764.94.

Singapore stocks pulled back from recent losses as publishing giant SPH Holdings rose on plans to float shares in the MobileOne telephone group in which it holds a big stake. The Straits Times index added 3.35 at 1493.7.

End-of-month book-keeping exercises left Sydney's All Ordinaries index down 9.2 points at 3073.6 at the close, with bluechips flat after some lacklustre earnings.

Plans by Richard Branson's Virgin Blue airline to add Hong Kong to its destinations lifted shares in 50% stakeholder Patrick by more than 1%.

Malaysia's Composite index fell 5.27 points to 709.87 while Thailand's SET dipped 2.09 to 360.05. The Jakarta Composite index rallied 1.95 points to 440.87.

Prices and indices in this section are supplied from various sources and calculated at different times and may not always match those listed in the tables.