LONDON (CNNfn) - Hong Kong's main stock market index climbed 1.4 percent Tuesday, lifted by strong gains for a handful of telecom stocks, while a rising yen undermined Tokyo after the market's rally Monday. Other Asian markets also lost ground.
The benchmark Nikkei 225 in Tokyo closed down 1.4 percent at 19,196.57 as exporters suffered from the yen's strength. The Nikkei had risen 2.5 percent Monday.
In Hong Kong, the Hang Seng ended 1.4 percent higher at 15,789.20, with gains restricted to the telecom sector while most other issues lost ground.
Singapore's Straits Times index closed down almost 1 percent at 2,319.77, hit for the second session by portfolio flows from Singapore to Malaysia.
In Seoul, the Kospi closed down 0.2 percent at 981.53, having surged 3.7 percent Monday on strong demand from overseas investors. Traders said demand for blue chips from domestic financial institutions was offset by a tendency for retail investors to sell stock.
In Tokyo, declines for some heavyweight electronics and technology companies mostly mirrored the sharp gains posted the previous session. Sony Corp., for instance, lost 3.5 percent, having climbed more than 2 percent Monday after German media company Bertelsmann was reported to be interested in acquiring the electronics maker's music subsidiary.
Reacting to a rise in the yen above 105 to the dollar car maker Toyota Motor losing 2.5 percent amid concern about the currency's effect on exports, and Honda Motor fell 1.5 percent. A stronger yen makes Japanese companies' revenue from overseas sales worth less in yen terms.
Retailers also provided a focus for investors. Ito-Yokado, which controls Seven-Eleven Japan, lost 4.1 percent a day after announcing plans to team up with some of Japan's largest banks to develop an online banking service. Seven-Eleven fell 6.4 percent. Both stocks climbed Monday.
Among the retailer's prospective banking partners, though, Bank of Tokyo-Mitsubishi gained 3.2 percent.
Supermarket chain Daiei Corp. was the exception to the weak retailers, rising 5.7 percent after Moody's Investors Service raised its rating on the company's creditworthiness.
The Nikkei's losses were limited by strong demand for brokerage shares after upbeat fourth-quarter earnings reports Monday. Nomura Securities gained 0.6 percent and was the most heavily traded stock on the index.
Telecom shares were again the prime movers in Hong Kong, with China Telecom closing up 5.8 percent and Hutchison Whampoa gaining 3.9 percent. The latter benefited from the 7 percent gain by Mannesmann (FMMN) Monday. Hutchison has a 10 percent stake in the German firm. Cheung Kong (Holdings), the conglomerate that controls Hutchison, rose 5.7 percent.
Wharf Holdings rose 3.7 percent after one of its cable television units secured a license to launch broadband multimedia services .
Most other bellwether shares fell, with banking giant HSBC down 0.5 percent
Singapore's blue chips continued to endure selling pressure as investors shifted assets to the Kuala Lumpur exchange. Malaysia is due to be reinstated in a key international equity market in the Morgan Stanley Capital International indexes next month.
Singapore Telecom lost 2.3 percent, weakened further by cuts in some of its international call rates, while banking heavyweight DBS Group slid 1.7 percent and Singapore Airlines lost 0.5 percent.
The KLSE Composite in Kuala Lumpur ended marginally lower at 949.62 after a 5 percent leap Monday.
Sydney's All Ordinaries added 0.4 percent to close at 3,151.20 as a rally in bank stocks countered a 1.7 percent fall in mining heavyweight BHP, hit by the threat of industrial action at some of its mines.
The PHS Composite in Manila slid 1.1 percent to close at 2,074.94.
Bangkok's Set blue-chip index was the firmest of the smaller Asian markets, gaining 1.3 percent to close at 483.14.
Other markets fell, with the JSX in Jakarta off 2.5 percent at 685.72 and Taiwan's Weighted index down 0.7 percent at 9,250.19. 
-- from staff and wire reports
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