LONDON (CNNfn) - Ford Motor Co. dealt a blow to South Korea's benchmark stock index Friday, saying it wouldn't go ahead with a bid to buy debt-laden Daewoo Motor. Hong Kong stocks closed lower on concern the U.S. Federal reserve may soon raise interest rates again.
The Tokyo market was closed Friday for a holiday. The previous day it closed at 16,213.28, down 1.7 percent from its value at the end of last week.
In South Korea, the Kospi index plunged 21.94 points, or 3.4 percent, to close at 628.20, while the tech-heavy Kosdaq fell 2.8 percent to 99.25.
In Hong Kong, the Hang Seng index slipped 145.90 points, or 0.9 percent, to 16,249.53, its lowest level in more than two months, with interest-rate-sensitive banking and property stocks leading declines. The index ended the week more than 6 percent down.
Taiwan's Weighted index closed at 7,155.45, up just 3.16 points from the end of Thursday, after climbing as much as 2 percent earlier in the day. Taiwan Semiconductor, the world's biggest microchip foundry, jumped more than 2 percent after the firm said strong global demand would send this year's net profit soaring 160 percent to T$64 billion ($2.06 billion).
Ford deals blow to Korean reform
In Korea, Daewoo Motor Sales, one of the few remaining listed companies in the Daewoo Group, fell 15 percent. Hyundai Motor, which bid jointly for Daewoo Motor with Germany's DaimlerChrysler (FDCX), slipped 2.4 percent after Korea's Financial Supervisory Commission said it would reconsider all the original bids for the firm. Ssangyong Motor, a smaller Korean automaker, was also down 15 percent.
"Daewoo's setback is a bad news for South Korea's stock market both in the short and longer terms," said Song Jong Ho, an auto analyst at Shinhan Securities Co. "A delayed Daewoo deal means its creditors will not get their money back soon. With the financial market unstable, such delay could affect other sectors, such as manufacturing, in a negative way," Song said.
Analysts had viewed the sale of Daewoo Motor to a foreign entity as a key benchmark for judging Korea's progress in reforming its bloated and opaquely managed corporations.
Ford (F: Research, Estimates), the world's No. 2 automaker, had been expected to complete the purchase of Daewoo Motor by the end of this month.
Index heavyweight Samsung Electronics fell 7.6 percent, and chipmaker Hyundai Electrical fell 12.4 percent.
Singapore's Straits Times index fell 15.17 points, or 1.2 percent, to 2,053.69, led by property and banking stocks. DBS Land lost 3.3 percent, Overseas Union Bank and United Overseas Bank dipped 2.3 percent, and the territory's biggest bank DBS Group slipped 1.3 percent.
The Hang Seng's properties sub-index fell 2.3 percent at 17,335.25 in Hong Kong, with its biggest component Cheung Kong (Holdings) declining 1.8 percent. Henderson Land slipped 3.4 percent and Sun Hung Kai Properties shed 3.5 percent.
Among the banks, Hang Seng Bank slipped 1.2 percent, Bank of East Asia dipped 2.3 percent and Dao Heng Bank shed just over 0.5 percent.
Goldman upgrades HSBC
HSBC Holdings was the exception in the banking sector, rising 0.5 percent after investment bank Goldman Sachs raised its recommendation on the shares to "market outperformer" from "market performer".
Telecom companies added to the gloom. China Mobile, the country's biggest mobile phone operator, fell 2.6 percent, while property to telecommunications conglomerate Hutchison Whampoa slipped 1.8 percent.
Australia's benchmark S&P/ASX 200 index fell 0.4 to 3,329.8 as mining and financial-services stocks weakened. Insurer and fund manager AMP dropped more than 2.8 percent, miner Broken Hill fell 3.1 percent and rival Rio Tinto lost 2.4 percent.
In other markets, Thailand's composite SET index rose more than 2 percent, while Manila's PHS Composite index was little changed at 1,450.99.
The Jakarta stock exchange remained closed following a fatal bomb blast earlier this week. 
- from staff and wire reports
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