Asian Markets Update: Stocks Give Back Gains in Advance of Nasdaq's Opening

HONG KONG -- Stocks were little changed or slightly lower in much of Asia Tuesday, giving up modest gains made earlier in the day as traders again cast an eye on the Nasdaq, back in business later today, for guidance on the future of technology stocks.

Japan's key Nikkei 225 index fell 16.54 points or 0.1% to 16,228.90, while the Topix index, which includes all shares listed on the Tokyo Stock Exchange's first section, lost 6.57 or 0.4% to 1518.43. The Jasdaq small-cap index gained 1.59 or 1.9% to 84.93, and the Nikkei over-the-counter index climbed 12.56 to 1729.93.

Mobile phone company NTT DoCoMo (NMCNY Quote) fell 150,000 or 5.3% to 2.7 million, after the Nihon Kezai Shimbun reported today that DoCoMo would likely buy as much as 20% of U.S. company VoiceStream Wireless(VSTR Quote). DoCoMo will pay for the purchase after issuing a trillion new shares, the paper said. DoCoMo's parent, Nippon Telegraph and Telephone (NTT Quote) fell 20,000 or 1.6% to 1.24 million.

The market was initially helped by data releases showing that unemployment fell a tenth of a point to 4.8% last month, its first decline in seven months, against expectations that the rate would rise. But the number of employed in April declined from a year earlier for the fifth straight month, and the number of permanent employees fell for the 28th straight month: that means that while Japan may be restructuring, the news is not being seen as immediately bullish for stocks overall.

New statistics also showed that spending by salaried workers rose 6.7% year on year, providing some hope that the recent, steadfast reluctance of Japanese consumers to spend their money could be coming to an end.

Sony (SNE Quote) fell 130 yen or 1.3% to 9970. Matsushita Electric Industrial (MC Quote) rose 35 to 2530, and Canon (CANNY Quote) fell 40 or 0.8% to 4730. Softbank fell 270 or 1.5% to 18,020, but Kyocera(KYO Quote) rose 510 or 3% to 17,200.

After a 42-minute failure of the Hong Kong exchange's automatic trading system, but no delay in the expiry of May futures, the benchmark Hang Seng index rose 15.83 points, or 0.1% to 13,990.90. Among the big stocks that rose were China Telecom, (CHL Quote) up HK$0.25 or 0.5% to 52.50. Property and holding company Cheung Kong (CHEUY Quote) fell 0.50 or 0.4% to 70.00, while its affiliate, Hutchison Whampoa (HUWHY Quote) lost 0.50 or 0.6% to 82.75. Pacific Century CyberWorks rose 0.35 or 2.5% to 14.40.

The Hang Seng China Affiliated Enterprises index, which tracks mainland-owned but Hong Kong-incorporated companies, fell 2.6%. Computer maker Legend(LGHLY Quote) fell 0.20 or 2.6% to 7.45.

Korea's Kospi index rose 35.33 points, or 5.4%, to 691.26. Samsung Electronics, a favorite among foreign fund managers, was up 17,000 won, or 6.3%, to 290,000. SK Telecom (SKM Quote) rose 6000, or 1.8%, to 343,000. Hyundai rose 15%, the same proportion as the two subsidiaries that were revealed last week to be suffering from a temporary cash shortage. Hyundai said at the time that this didn¿t mean the group was in financial trouble. The market was cheered after Standard & Poor¿s reaffirmed Hyundai Motors¿ B+ rating, a sign that the group may not bail out troubled parts of the corporate empire.

Taiwan's TWSE index rose 176.17 points to 8764.42. Taiwan Semiconductor Manufacturing (TSM Quote) rose NT$5.50 or 3.8% at 151.00.

In currency trading, the dollar was slightly weaker. It recently bought 106.885 yen.