TOKYO -- It was only yesterday that investors fretted about more corporate bankruptcies, but they didn't seem much concerned Wednesday.

Tokyo ignored the second corporate failure in less than a week and decided the slip in the

Nasdaq Composite

overnight was much more important. Large- and small-cap tech shares were sold off but with a market holiday coming up Thursday, selling volume was light.

The

Nikkei 225

index closed up 38.50 to 16,983.57, while the

Topix

index, which includes all shares listed on the

Tokyo Stock Exchange's

first section, ended the trading day having shed 2.28 to 1539.67. The

Jasdaq

small-cap index lost 0.92, or 1.1%, to 82.40, while the Nikkei

over-the-counter

index lost 17.67, or 1.0%, to 1709.36 for the session.

Property company

Seiyo

, part of the privately held

Saison

financial group, filed for bankruptcy under court protection with $4.8 billion in liabilities late Tuesday. This follows the

collapse of department store operator

Sogo

last Wednesday, which marked Japan's second-largest failure to date. However, the market tossed bankruptcy concerns aside, and after an initial dip in tech shares, fund managers bought back key stocks to leave Tokyo markets near flat.

NEC

(NIPNY)

lost 120 yen, or 3.7%, to 3090 ($28.63), while

Toshiba

shed 42, or 3.7%, to 1090. Shares of

Nippon Telegraph & Telephone

(NTT)

dipped 20,000, or 1.4%, to 1.41 million despite the U.S. and Japan agreeing to cut NTT's regional interconnection rates by 50% and local rates by 20% over the next two years.

Fund managers seemed to like

Kyocera

(KYO)

, which rose 400, or 2.3%, to 17,600. The firm said group sales between April and June topped the original target by 20% due to robust sales in mobile phone parts. Internet incubator and mobile phone reseller

Hikari Tsushin

jumped 500, or 10.7%, to 5170 after the

Financial Times

reported the firm may oust founder and chief executive Yasumitsu Shigeta as part of its planned restructuring program.

Shares of

Mitsubishi Motors

dropped 34, or 7.4%, to 428 after the firm said it was recalling 514,000 cars and trucks to fix faulty seat belts and engine parts. The recall came after the

Ministry of Transportation

raided the firm on suspicion it had been hiding customer complaints about its vehicles for the last two years.

DaimlerChrysler

(DCX)

is close to taking a 34% stake in Mitsubishi.

The greenback edged slightly lower in lethargic Tokyo trading and recently fetched 107.94 yen.

Tech shares gave a boost to Hong Kong's

Hang Seng

index, which closed up 269.24, or 1.5%, to 17,710.07.

Hutchison Whampoa

gained HK$2.50, or 2.1%, to 119.50 ($15.33), while Johnson Electric climbed 2.75, or 4.0%, to 72.00.

Elsewhere in Asia, Korea's

Kospi

index shed 15.03, or 1.9%, to 797.30, while Taiwan's

TWSE

index rose 43.10 to 8411.88.