Search the Internet          Tips  Sites: Finance, Investment

Japan stocks strong run ends, Lunar New Year nears

Japanese stocks ended their stronger run on Tuesday in the face of profit taking on high-tech issues, inching lower as the Chinese New Year holidays dampened activity elsewhere in Asia.

The Nikkei closed down 0.3 per cent or 47.8 points at 13,984.7, snapping a run of seven successive stronger closes. It was the Nikkei's longest such run since eight successive stronger closes in August 1999.

"There are a lot of issues that gained considerable ground over the Nikkei's seven-day rise. Some selling at these levels is to be expected," said Yutaka Miura, deputy manager of the equity information division at Shinko Securities.

NEC and other computer makers came under pressure following a warning by US Dell Computer Corp that its profits will be hit by a slowing global economy.

NEC ended down 5.6 per cent at 2,430 yen. It had gained around 17 per cent over the previous seven sessions as the Nikkei rallied more than 6 per cent.

The dollar was struggling to hold its gains above 117 yen before a Tuesday afternoon briefing by Bank of Japan Governor Masaru Hayami, who said last Friday the yen was too weak.

The stronger dollar had helped some Japanese exporter stocks, and they have unwound some of those gains as the dollar has retreated from last week's 17-month high of 119.90 yen.

US stocks were softer on Monday, the first day of a busy week for corporate results, after warnings from Dell and Texas Instruments weighed on other technology stocks.

American Express Co was another to warn that weak financial markets and a slowing economy would temper its earning outlook in 2001, adding to the market caution.

The Dow Jones Industrial Average finished only slightly lower, down 0.09 per cent at 10.578.2, while the Nasdaq dropped 0.45 per cent to 2,757.9.

Chinese New Year holidays

Hong Kong and Singapore had half days on Tuesday, the eve of Chinese New Year, while markets in South Korea, Malaysia and Taiwan were closed all day.

Hong Kong and Taiwan are closed until next Monday, while the rest reopen on Friday.

In the morning session, Hong Kong's Heng Seng Index was mixed, with technology and Internet stocks outperforming blue chips on optimism the Nasdaq, despite its overnight losses, may stabilise over the Chinese New Year break.

Profit taking on many blue chip stocks ahead of the holidays saw the overall market close its shortened session down 0.34 per cent at 16,044.21.

Singapore stocks managed to eke out some small gains, ending 0.17 per cent higher at 1,914.29.

In contrast to Hong Kong, technology stocks were weaker in Singapore, with gains in the banking sector helping the market to end just in positive territory.

The weaker U.S. close dragged the Australian stock market down 0.94 per cent to 3,288.6.

Index heavyweight News Corp, which captures 70 per cent of its revenue in the United States, fell almost 5 per cent after its ADRs slid in New York on Monday.

New Zealand's winning run came to a halt on Tuesday as well. The NZSE-40 Capital Index fell 0.77 per cent to 2,004.72 on profit taking. It had closed Monday at a four month high after eight successive daily rises.

Tell us what you think of this report