LONDON (CNNfn) - Asia's top markets trickled lower Thursday, as key technology stocks drifted down across the region. Gains for "old economy" bank and industrial issues kept the losses limited, while Taiwan's top index bolted higher as a government fund jumped into the stock market.
Tokyo' benchmark Nikkei 225 average closed 34.61 points lower, or down 0.2 percent, at 14,837.78, as Internet companies and consumer electronics makers led the way lower.
In Hong Kong, the Hang Seng index ended down 57.47 points, or 0.4 percent, to 15,291.54, after gaining more than 3 percent on Wednesday. Internet company Pacific Century Cyber Works fell 4.2 percent and mobile phone operator SmarTone Telecommunications shed 5.5 percent. 
"After yesterday's sharp rally it's not surprising we are seeing a bit of consolidation but it doesn't look as if it will be too prolonged," said David Harman, an institutional sales manager with Typhoon Eight Research Ltd., referring to a gain of more than 3 percent on the Hang Seng index on Wednesday.
Traders said investors in Asian telecom and Internet companies were rattled in part by a sales warning by U.S. telecom services firm WorldCom (WCOM: Research, Estimates).
Singapore's Straits Times index closed up 0.42 point to 2,040.43 while in Australia, the S&P/ASX 200 index edged up 0.4 percent to close at 3,289.3.
Elsewhere among Asia's biggest markets, the KOSPI index in Seoul shed 1.4 percent, while the Taiwan Weighted index in Taipei rallied 3.7 percent
as the government's T$500 billion (US$15.6 billion) stabilization fund bought shares, halting a slide triggered by a political crisis over a cabinet decision to stop building a nuclear plant.
In the currency market, the U.S. dollar fell against Japan's yen, but pared earlier losses at ¥108.30, down ¥0.26 from the end of the previous business day in Tokyo.
Wall Street ended lower Wednesday. The Dow Jones industrial average slipped 71.67 points to 10,899.47, while the Nasdaq composite shed 36.23 points, or more than 1 percent, to end at 3,333.40.
Tech drift drags Nikkei under
"Old economy" stocks kept the losses limited in Tokyo, with machinery maker Mitsubishi Heavy Industries closing up 6.7 percent on expectations of a major restructuring.
Three Japanese insurers said they were in talks on combining operations, pushing their share prices higher. Nissan Fire & Marine Insurance added 6.2 percent, Taisei Fire & Marine Insurance rose 11.6 percent and Yasuda Fire & Marine Insurance edged up 0.4 percent.
Arabian Oil jumped 16.4 percent on speculation that the oil producer might participate in the development of Iran's Azadegan oil field, the world's largest untapped field. Japan said Wednesday that Iran had agreed to give Japanese firms negotiating rights for the appraisal and development of a specific area of the field.
Those industrial and financial sector gains were partly offset by losses in top technology shares such as consumer electronics company Sony, which lost 2.8 percent, pulling back slightly from a 6.1 percent advance Wednesday.
NTT DoCoMo, Japan's leading mobile phone service provider, rose 1.4 percent but parent NTT fell 1 percent.
Audio equipment maker Pioneer fell 5 percent as investors decided Wednesday's strong earnings results were already factored into its share price. Pioneer recorded a more than 10-fold jump in consolidated net profit in the three months to September amid brisk sales of DVD players and plasma displays. The stock rose 7.4 percent Wednesday ahead of the news.
Sega slipped 6.5 percent after its Wednesday announcement of a shift in strategy failed to spark investor demand for shares in the troubled videogame maker that is best known for its Dreamcast game console. Sega also said it aims to lift its share of the global market for videogame package software to 25 percent to shift its focus to software instead of loss-making hardware.
Internet investor and telecom provider Hikari Tsushin fell 3.2 percent after a decision by e-mail service provider Crayfish (CRFH: Research, Estimates) to cancel a partnership between the companies. The move fueled concerns about Hikari's prospects. Crayfish jumped 12.5 percent. Crayfish faces a U.S. shareholder lawsuit for allegedly failing to provide information at its initial public offering about the decline in Hikari's business and the potential impact on Crayfish.
Hong Kong nearly flat
In Hong Kong, China's biggest mobile phone operator, China Mobile (Hong Kong), fell 1.8 percent. Analysts said the stock should find support, however, since the Hong Kong government's Tracker Fund is expected to purchase 40 million shares in the company. 
Hong Kong property developer Cheung Kong rose 1.7 percent. Among technology plays, losing ground was mainland computer maker Legend Holdings, down 3.7 percent.
In Singapore, printed circuit board maker Elec & Eltek blasted up 9.4 percent. Brokerage Kim Eng Securities soared 14.7 percent amid rising speculation that more mergers and acquisition activity is on tap in the sector.
A strong profit result from Australia's largest bank, National Australia Bank, drove up its shares 1.7 percent. NAB reported a 15 percent rise in net profit to A$3.3 billion (US$1.7 billion) for the year to Sept. 20 and said also it expected current momentum to continue into the 2000/01 financial year.
Energy and mining giant BHP rose 1.4 percent after posting first-quarter profits of A$715 million, up from A$534 million in the quarter a year earlier, and at the top end of market expectations.
Among other Asian markets, the KLSE composite index in Malaysia shed 1.2 percent, Thailand's SET index added 0.2 percent, the PHS composite in Manila added 0.25 percent, the JSX index in Jakarta fell 0.3 percent while the Sensex in Mumbai jumped 2.3 percent. 
-- from staff and wire reports
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