Asian Markets Update: Tech Sector Leads Markets Lower

TOKYO -- Asian equity markets closed broadly lower Wednesday, as the region's technology shares got pounded after IBM(IBM) reported lackluster earnings Tuesday.

In Tokyo, the Nikkei 225 tanked 467.7, or 3.1%, to close at 14,872.5, ending under 15,000 for the first time in more than a year and a half. The Topix index, which includes all shares listed on the Tokyo Stock Exchange, fell 30.9, or 2.2% to finish the day at 1407.3.

The Nasdaq's weak close also conspired with the limp IBM results to force Japanese tech shares sharply lower. Chipmaker NEC (NIPNY) dropped 95 yen, or 4.2%, to 2,150 ($19.89), Fujitsu (FJTSY) dropped 120 yen, or 5.4%, to 2,100 and Sony (SNE) closed down 400 yen, or 4%, at 9,610.

Things got ugly in other sectors too, as Canon (CAJ) fell 260 yen, or 6%, to 4,080 and Nippon Telegraph & Telephone (NTT) fell 50,000 yen, or 4.6%, to 1.05 million.

The dollar was trading at 108.05 yen from 108.15 yen Tuesday.

Elsewhere, Taiwan's TWSE index closed off 270.1, or 4.7%, at 5432.2, as chipmakers including Taiwan Semiconductor (TSM), which dropped nearly 7%, got mauled. Hong Kong's Hang Seng index fell 414.9, or 2.8%, to 14,458.5.

South Korea was the only exception to the bloodletting Tuesday, as the Kospi index crept 1.3 higher, or 0.3%, to 514.2, after getting hammered Tuesday.

>To order reprints of this article, click here: Reprints