Asia markets mixed; Nikkei slides

11-01-2008 | AP

Investors’ reaction to Bank of Japan’s rate cut is lower than expected

Panama Star BANGKOK. Asian markets were mixed Friday as Japanese stocks fell despite the first rate cut in seven years while shares in India soared to catch up with a previous day's global market rally after a holiday there.

European markets opened lower.

Investors were also digesting data overnight that confirmed the U.S. economy — a major export market — had contracted in the third quarter.

Tokyo's Nikkei 225 index sank 5 percent to 8,576.98 amid persistent worries about earnings.

Investor sold shares after the previous day's 10 percent surge and ahead of a three-day weekend in Japan.

They didn't react much to the Bank of Japan's rate cut, which was widely expected, even if it was a bit less than the typical quarter-point move.

South Korea's market extended the previous session's 12 percent rally with the Korea Composite Stock Price Index gaining 2.6 percent to 1,113.06. Australia's key index climbed out of negative territory to close 0.4 percent higher.