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Nikkei sits at 15-year low
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March 1, 2001: 6:24 a.m. ET
Bank of Japan rate cut underpins banks, but tech sector is hammered
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LONDON (CNN) - Tokyo's top index ended at a 15-year low on Thursday, as ailing tech stocks drew no mirth from an interest rate cut that helped banks rally.
The benchmark Nikkei 225 average closed down 201.88 points, or 1.6 percent, at 12,681.66, its lowest closing level since November 1985.
The slide came even though the Bank of Japan surprised markets late on Wednesday with a cut in its key overnight rate target to 0.15 percent, from 0.25 percent, and the discount rate to 0.25 percent from 0.35 percent. 
Lower rates tend to support equities by lowering corporate borrowing costs.
In Hong Kong, the Hang Seng index closed down 427.31 points, or 2.7 percent, at 14,360.56. Testimony by U.S. Federal Reserve Chairman Alan Greenspan left the impression a U.S. interest rate-cut may not be imminent. Hong Kong's rate policy traditionally mirrors that of the United States.
The Straits Times in Singapore stumbled 1.8 percent, but Sydney's S&P/ASX 200 inched up 0.7 percent as telecom group Telstra rose 2.4 percent.
Elsewhere across Asia's biggest markets, Seoul's KOSPI nosed up 0.1 percent while the Taiwan Weighted index in Taipei dropped 3.1 percent.
In the currency market, the U.S. dollar rose to ¥117.12, up from ¥116.44 at the end of the previous business day in Tokyo.
Wall Street stocks retreated a day earlier. The Nasdaq composite lost 2.6 percent, while the Dow Jones industrial average fell 141.60 points, or 1.3 percent, to close at 10,495.28.
Techs topple Tokyo
Japan's biggest tech stocks were hammered. Matsushita Electrical Industries, the world's biggest consumer electronics manufacturer and parent of Panasonic, tumbled 6.8 percent. Rival Sony dipped 2.7 percent and Hitachi dropped 4.1 percent.
Chip and computer maker NEC fell 4.2 percent, while fibre-optic cable maker Furukawa retreated 7.8 percent.
Advantest, a manufacturer of semiconductor testing devices, shed 2.8 percent following a plunge in U.S. chip shares that sent the Philadelphia Semiconductor index down 4.9 percent overnight.
Bank stocks were higher, however. Sanwa Bank climbed 2.5 percent, Bank of Tokyo-Mitsubishi gained 2.8 percent and Tokai Bank rose 2.2 percent.
Japan Telecom rose 6.5 percent, continuing to benefit from Tuesday's deal by Britain's Vodafone to buy an extra 10 percent stake in the No. 3 Japanese carrier for $1.35 billion
Among Hong Kong blue chips, cell phone operator China Mobile plunged 6.1 percent after announcing a new pricing scheme on Wednesday, and rival group China Unicom shed 5.4 percent after pledging to match that plan.
Global bank HSBC Holdings fell 1 percent.
Legend Holdings, China's biggest computer maker, dropped 4.7 percent while conglomerate First Pacific sank 10.6 percent after its Philippine Long Distance Telephone unit reported a sharp drop in 2000 earnings.
Elsewhere across Asia, the KLSE composite in Malaysia and Jakarta's JSX each shed 1 percent, Bangkok's SET dropped 2.8 percent, the PHS composite in Manila sank 2.7 percent, but Mumbai's BSE Sensex added 0.6 percent as investors cheered a new budget plan for a second day.
-- from staff and wire reports 
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