Asian Markets Update: Another Down Day Across the Region

HONG KONG -- Stocks fell sharply across Asia in response to the nearly 6% slide in the Nasdaq overnight, as the sell-off of technology stocks world-wide continued.

Japanese shares fell for the sixth consecutive trading day. The key Nikkei 225 index fell 274.29 points, or 1.7%, to 16,044.44, and the Topix index, which includes all shares listed on the Tokyo Stock Exchange's first section, fell 14.91 points, or 1% to 1496.34. The Jasdaq small-cap index lost 1.15 points to 77.04, while the Nikkei over-the-counter index shed 39.65 points, or 2.3%, to 1657.26.

The market erased nearly all of its losses around midday, before bearishness again took hold. And, there may be further weakness ahead: The June Nikkei futures contract traded on the Osaka exchange stands at 15,390, a 4% discount to the cash market.

Sony (SNE Quote) tumbled 510 yen, or 5.1%, to 9490, and Fujitsu (FJTSY Quote) fell 110 or 3.7% to 2890. Internet investor Softbank plunged 1300, or 8.4% to 14,100. The former star of the Japanese market is now some more than 75% off its February high.

Nippon Telegraph & Telephone (NTT Quote) rose 40,000 to 1.27 million, but its mobile unit, NTT DoCoMo (NMCNY Quote) fell 130,000 to 2.67 million.

Toyota Motor (TM Quote) rose 10 to 5070.

In Hong Kong, the benchmark Hang Seng index fell 269.95 points or 1.9% to 13,987.23. Conglomerate Hutchison Whampoa (HUWHY Quote) lost HK$2.00 or 2.2% to 88.50, while index heavyweight China Telecom (CHL Quote) fell 2.35. or 4.7%, to 47.90.

The "A" Shares in real estate, aviation and soft drink conglomerate Swire Pacific (SWRAY Quote) rose 2.20 or 5.1% to 45.60, after gaining more than 8% yesterday. Swire has been a laggard on the market, but may be picking up support on the part of shareholders of Cheung Kong, (CHEUY Quote) which has suffered since the announcement last week that it is being excluded from Morgan Stanley Capital's main Hong Kong index effective June 1. Swire remains in the index.

Cable & Wireless HKT (HKT Quote) fell 0.20 to 17.75, despite an announcement of a partnership with Intel Corp. (INTC Quote) to develop electronic commerce in Asia. The company bidding to take over HKT partly or completely with stock, Pacific Century CyberWorks, fell 0.45, or 3%, to 13.95. HKT said it had received court approval to send the PCCW offer to shareholders, with a probable vote in early July.

Separately, Intel said it would be listing its stock on Hong Kong's second board at the end of this month, a move which promises to dwarf the handful of other issues there now. The second board, known as the Growth Enterprise Market, is supposed to be for young companies without sufficient earnings histories to list on the main exchange.

In Taiwan, the TWSE index fell 170.60 points, or 2%, to 8500.41. Korea's Kospi index fared better, losing 4.81 points to 674.95. Samsung Electronics fell 9000 won, or 2.8%, to 310,000.

In currency trading, the dollar was little changed, and recently fetched 106.63 yen.