Asian Markets Update: Kospi Falls After Ford Cancels Buyout of Daewoo - TheStreet

Asian Markets Update: Kospi Falls After Ford Cancels Buyout of Daewoo

Markets in Japan were closed for a national holiday.
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TOKYO -- Asian shares were flat to lower Friday, as selected telecom and electronic stocks fell lower on profit-taking before the weekend.

Korea took a beating, however, with the key

Kospi

index falling more than 3% after U.S. auto giant

Ford

(F) - Get Report

said it was pulling the plug on its planned buyout of troubled

Daewoo Motors

. Korea's

Kospi

index slid 21.94, or 3.4%, to close at 628.20.

Hong Kong's

Hang Seng

index shed 145.90 to finish at 16,249.53 and Taiwan's

TWSE

index rose 3.16 to stand at 7155.45. Tokyo markets were closed for a public holiday.

Market sentiment eroded in Seoul today after Ford confirmed reports that it will not buy Daewoo Motors as planned. Ford, which is battling a high-profile fallout with tire maker

Firestone

, was scheduled to complete the deal by the end of this month after winning to exclusively negotiate a deal with Daewoo against rivals

General Motors

(GM) - Get Report

,

DaimlerChrysler

(DCX)

and

Fiat

(FIA)

.

"We believe that a proposal was not possible that would be in the interest of Daewoo and Ford and their respective shareholders," said Ford Vice Chairman Wayne Booker in a statement.

With market pressure already on due to higher oil prices, shares across the board fell hard.

Daewoo Securities

slid 1000 won, or 10.2%, to 8700 ($7.86), while

Hyundai Electronic Industries

shed 2350, or 12.4%, to 16,550.

In Hong Kong, investors took profits in large-cap telecom shares before the weekend, traders said.

China Mobile

(CHL) - Get Report

shed HK$1.25, or 2.2%, to 56.00 ($7.18), while

Hutchison Whampoa

fell 1.50, or 1.4%, to 106.00.

Recently battered

Pacific Century Cyberworks

(PCW)

bucked the trend by rising 0.20, or 1.7%, to 11.70.

Friction between the government and opposition parities capped trading in Taiwan, as investors stayed away from the market today after the legislature scrapped its talks on the nation's 2001 budget. Chip makers were generally higher, however, with

United Microelectronics

up NT$1.00, or 1.3%, to 77.50 ($2.50), and

Taiwan Semiconductor Manufacturing

(TSM) - Get Report

up 2.50, or 2.1%, to 122.50.