Asia shares mixed as Tokyo tumbles

Asia shares mixed as Tokyo tumbles

SINGAPORE (Agencies): Gloomy Tokyo stocks fell to 17-year lows on Thursday while the rest of Asia put in a mixed performance despite a firm Wall Street buoyed by hints that the worst may be over for the anaemic U.S. economy.

Tokyo's Nikkei average tumbled 2.36 percent to 11,126.92 points, the lowest close since October 1984.

Taiwan, Indonesia and South Korean markets closed lower, while in mid-afternoon dealings Hong Kong and Singapore were higher.

Wall Street had appeared to offer Asia a cue to rise on Thursday.

Car maker General Motors and software maker Intuit Inc said their business conditions were unlikely to get any worse, prompting the Dow Jones industrial average to rise one percent to 10,276.90 and the Nasdaq to gain 1.57 percent to 1,860.01.

However, concerns about the dwindling profits of high tech firms dominated sentiment in Tokyo. In addition, a slump in heavyweight stock NTT DoCoMo weighed on the market.

DoCoMo shares fell 6.88 percent to 1.49 million yen each as investors bet the company would have to write down the value of its overseas investments, including in AT&T Wireless

Hong Kong's benchmark Hang Seng index was up 0.98 percent at 11,297.95 points at 0700 GMT, helped by money flowing into property and bank stocks following the U.S. Federal Reserve's interest rate cut on Tuesday.

However, many investors were sidelined waiting for the release of interim results from bellwether ports-to-telecoms conglomerate Hutchison Whampoa, expected around 0800 GMT. Its shares were up 1.15 percent at HK$65.75 at 0700 GMT.

Singapore's Straits Times Index was up a modest 0.25 percent at 1,636.42 in generally mixed trade.

Singapore Telecommunications firmed 1.6 percent to S$1.92 after the U.S. approved of its deal to acquire C&W Optus in Australia. U.S. approval was needed because of the use of U.S. technology by Optus.

Indonesian shares closed marginally lower following a delay in an expected agreement between the government and the International Monetary Fund (IMF), dealers said.

The Jakarta Stock Exchange composite index ended down 2.288 points or 0.5 percent at 439.69.

Volume was 477.1 million shares valued at Rp 400.6 billion (US$45.9 million).

South Korean shares fell, led by Hynix Semiconductor and Hyundai Securities The composite index ended down 0.83 percent at 570.07.

The troubled Hynix dropped 14 percent to 1,400 won on worries that creditors might reduce the company's capital in exchange for granting a debt-for-equity swap.

Hyundai Securities fell 10 percent to 9,000 after a consortium led by insurance giant AIG announced it was taking management control of the Hyundai Group's financial units, including Hyundai Securities, for around $864 million.

The deal would include AIG investing in a rights issue at 8,940 won, much lower than Hyundai Securities' previous closing price of 10,050.

Australian stocks closed firmer. Bangkok and Kuala Lumpur markets were firmer in mid-afternoon trading, while shares in China were trading lower.