Asian stocks take tech knock


Chipmakers and techs led Japan lower and knocked Taiwan almost 3 percent, but cell phone services gained in Taipei

staff and wire reports

HONG KONG, CHINA -- Asian stocks fell on Friday, knocked by a technology slide in the U.S. and despite strong output figures from Japan.

The Nikkei index fell 1.18 percent to 11,438.53, with chip stocks sinking after analysts downgraded Intel Corp. in the United States.

But the broad Tokyo market, as measured by the Topix, was more restrained. It fell 0.56 percent to 1101.87.

Japan's Cabinet Office reported that the country's gross domestic product rose 1.4 percent for the first three months of the year.

That gives renewed evidence that Japan is coming back (full story).

Taiwan off almost 3 percent

Elsewhere around Asia, the South Korean market dropped more than 1.75 percent, with Taiwan down almost 3 percent on chip selling.

Australia ended at a very slight loss, but New Zealand rose. Hong Kong's market dropped almost 1 percent, and Singapore is down around one-third of a point coming up to the close.

In India, stocks are down 1.24 percent in afternoon trade.

In Tokyo, many Japanese techs were down, including consumer electronics leader Sony Corp, and Nikon Corp., which makes equipment used to make chips.

Intel, the world's largest chipmaker, cut its sales forecast on Wall Street (U.S. Thursday roundup).

Nikon fell 3.9 percent to 1414 yen, with chip-testing machine maker Advantest also lower to the tune of 6.4 percent to 7900 yen. Sony was down 0.86 percent to 6910 yen.

Chip foundries down

Taiwan took the force of Intel's warning full frontal. It dropped 2.83 percent to 5433.02.


The Nikkei and the Topix didn't warm to the encouraging figures on Japan's economy, which show it rebounding

The largest stock in Taipei, chip foundry Taiwan Semiconductor Manufacturing Co., fell the 7 percent limit for a one-day drop, to T$75.00.

Rival foundry United Microelectronics slumped 6.4 percent.

But banks lent the market a little support. Chinatrust added 0.7 percent to T$29.80.

Taiwan Cellular, the island's largest provider, rose 3.0 percent to T$44.60 after Taiwan revised rules to allow overseas ownership of up to 49 percent, from 20 percent.

Samsung and Hynix sold

In Korea, the Kospi index fell 1.78 percent to 795.16. Again, chip stocks led the selling.

The largest stock in Seoul, Samsung Electronics, dropped 2.95 percent to 345,000 won.

Troubled chipmaker Hynix Semiconductor fell the 15 percent daily limit to a fresh lowpoint, 390 won. Banks sold some of their stock left as a result of switching loans into equity.

The Bank of Korea intervened verbally to weaken the won, which is gaining ground against the U.S. dollar. As of Friday's close in Korea, it stands at 1,227.2.

The Japanese yen sits at 124.20 to the greenback in early trade out of Europe.

Australian stocks slipped marginally, the S&P/ASX 200 index ending down 0.04 percent at 3342.8.

News Corp. and Telstra Corp., the largest two listiings, sold off on worries about prospects.

Telstra ended at a four-year low of $4.55, with one equity strategist saying there is "a very ho-hum picture" for Australia's largest telecom.

But mining stocks were up, with both Rio Tinto and BHP Billiton showing modest gains.

In New Zealand the NZSE-40 Capital Index rose a negligible 0.05 percent to 2117.62.

New Zealand Telecom dominated trade, but ended steady at NZ$5.20.

Exporters down in Hong Kong

In Hong Kong, the Hang Seng index ended 0.84 percent lower at 11,284.71. Export and telecom stocks were hurting.

Small-motor maker Johnson Electric fell 2.44 percent to HK$10.00. Trading house Li & Fung dropped 1.36 percent to HK$10.90.

Cell-phone service China Mobile dropped HK$2.61 percent to HK$24.30. Hong Kong turnover was again fairly modest, however.

In Singapore, the Straits Times index is off 0.31 percent at 1647.29 heading into the close. But it is paring tech-influenced losses.

Indian stock markets are looking at losses for the first time in four days.