Most Asian markets fell Wednesday, following a sharp drop on Wall Street overnight, as the yen's strength weighed on Japanese stocks and Hong Kong shares were dragged lower by losses in HSBC, REPORTED AP. But South Korea's main stock index closed above the 2,000 mark for the first time, helped by a hike in the country's credit rating and strong economic growth figures. The Korea Composite Stock Price Index rose 11.96 points, or 0.6 percent, to close at 2,004.22, lifted by securities companies like SK Securities Co., which surged 12.3 percent. So far this year, the index has surged 40 percent. Sentiment was buoyed by news that Moody's Investors Service raised its sovereign credit rating for South Korea. Moody's upgraded South Korea's long-term foreign currency and local currency ratings to A2 from A3. A2 is the sixth-highest level and five rungs above «junk» status. The Bank of Korea earlier announced that South Korea's economy grew 4.9 percent in the second quarter from the year before, stronger than expected. In Tokyo, the Nikkei 225 index shed 143.61 points, or 0.8 percent, to 17,858.42 points. Recent appreciation in the yen hurt Toyota and other export-sensitive names. Traders said that although investors may be watching individual shares this week based on their earnings results, players be will likely be reluctant to take a strong position ahead of the upper house elections in Japan over the weekend. Losers included Toyota Motor Corp., which fell 1.33 percent to 7,410 yen (US$61.75) and Nippon Oil Corp., which dropped 3.86 percent to 1,121 yen (US$9.34). Tokyo Electric Power Co. fell 1.2 percent to 3,300 yen (US$27.50) after saying that a ceiling crane at its No. 6 nuclear reactor building at Kashiwazaki-Kariwa nuclear power plant in northern Japan was damaged by a July 16 earthquake. In Hong Kong, the blue-chip Hang Seng Index fell 110.70 points, or 0.5 percent, to 23,362.18. Bank major HSBC weighed on the index, falling 1 percent to HK$143.80 on U.S. subprime mortgage concerns. Those concerns also weighed on Wall Street overnight: the Nasdaq fell 1.9 percent while the Dow Jones Industrial Average fell 1.6 percent. But traders said the Hang Seng's downside was limited by strength in the mainland Chinese markets. Subprime lending concerns do not have a major impact on most Hong Kong companies other than HSBC, they added. «The correction may not be a one-day thing,» said Ample Financial Group fund manager Alex Wong. China Mobile (Hong Kong) Ltd. also pulled the index lower after its recent outperformance, falling 0.1 percent to HK$93.25. Oil major CNOOC Ltd. ended 3.1 percent lower at HK$9.39 on softening oil prices. But that boosted Hong Kong's flagship carrier Cathay Pacific Airways, which bucked the market downtrend to end 1.9 percent higher at HK$20.10. In currencies, the U.S. dollar was trading at 120.22 yen mid-Wednesday, down from 120.41 yen late Tuesday in New York. The euro inched down to US$1.3822 from US$1.3830. --MORE
