Tokyo nervous ahead of key forecasts

NEW doubt about the depth of Japan's recovery and nervousness ahead of a clutch of key earnings figures tomorrow left

Where exports might go next is expected to be clear on Thursday and Friday after major electronics groups, led by Sony, unveil earnings and profits forecasts. After bounding up almost 800 points in eight trading days, the Nikkei 225 dropped 43 points by midday, and closed 63.95 points down at 11,672.88 after an afternoon rally failed.

Ten key electronics and consumer goods manufacturers will report during the next two days. Sony shares slipped 1% today, although analysts will be disappointed if there has not been a near doubling of operating profits for last year.

Hong Kong investors were worrying about HSBC Holdings' exposure to Argentina again, and the stock lost 50 cents to HK$91.50. The fall came after HSBC Hong Kong chairman David Eldon said that a warning had been sent to the Argentinian government not to set onerous conditions on the bank's local operations. Other shares were subdued by figures showing that Hong Kong's economy deflated in March for the 41st month, but bargain-hunting among property stocks left the Hang Seng index up 38.11 at 11,383.29.

Controversy continued to surround plans by Micron Technology to snap up the major assets of South Korean chip maker Hynix Semiconductor. Reports that the US company was insisting on a massive debt write-off brought bank shares down by up to 7% on fears of the damage that would be done to their balance sheets. Despite continued worker opposition to the deal, Hynix shares recovered 3% after big falls on Tuesday, but the Kospi index dropped 16.08 points to 909.62.

Rising exports and growing industrial activity encouraged Taiwanese investors into the market, and the Weighted Average index rose 38.41 points to 6429.43. Computer display panel makers were among the fastest movers on hopes of growing global demand.

Healthcare company Mayne was the sickest stock in Sydney after the group warned that earnings were likely to be almost 20% below analysts' expectations. Its shares plunged almost 25% as brokers rushed to downgrade the stock and warned that worse could still be to come. The All Ordinaries index closed 27.4 points down at 3324.1 after resource stocks weakened following a bearish report on iron output from Rio Tinto, which cost the shares 3%. Other miners fell as world commodity prices showed signs of easing. BHP Billiton was down 1.5%.

Selective stock picking left Singapore shares mixed, and the Straits Times index fell by 2.1 points to 1738.35. Dayen Environmental surged almost 1% after being cleared in a share-rigging probe.

Gambling stocks in Malaysia fell as investors cashed in. Lottery operator Toto fell 2.6%, and the Kuala Lumpur Composite slid 3.44 points to 804.63. Continued demand for Indonesian telecoms and other blue-chips took the Jakarta Composite index up 1.08 to 544.15, while renewed demand for banking counters lifted Thailand's SET index 1.32 points to 382.75.

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.