Asia suffers TSMC chip contagion


Taiwan's chip foundries are limit down, and the chip selling has spread to Singapore, Korea and Japan

By Alex Frew McMillan

HONG KONG, China -- Asian stocks are selling off on chip stocks on Friday, with South Korea and Taiwan both off more than 3 percent.

Chip manufacturers through Asia are suffering the aftermath of a heavy selloff in Taiwan Semiconductor Manufacturing.

TSMC, Taiwan's largest listing, fell 19 percent in overnight Wall Street trade and is down the daily 7 percent limit on Friday in Taipei.

It came in with disappointing profits and a bearish forecast for the second half of the year after the close of trade on Thursday (full story).

The losses aren't restricted to Taiwan and Korea. Tokyo's tech-driven Nikkei is down 2.99 percent at 9,633.36 in early afternoon. The Topix index is down 1.97 percent at 948.94.

Toshiba, Fujitsu down hard

The indexes are steepening their losses, after the Nikkei ended the morning down 2.42 percent and the Topix, 1.51 percent.

In Tokyo, the broader market is selling off. But techs are down particularly hard.


Samsung is seeing heavy selling from overseas investors freeing up cash for use back home

As the afternoon session sets in, Toshiba Corp. is down 4.86 percent at 450 yen. Fujitsu comes close to matching that decline, off 4.8 percent to 734 yen.

Circuits and specialty ceramics maker Kyocera is down 4.4 percent at 7,830 yen. NEC is down 5.5 percent at 725 yen after coming in with earnings on Thursday. Sales dropped 9 percent (full story).

Banks are off again in afternoon trade. Mizuho Holdings is down 3.2 percent at 274,000 yen. UFJ Holdings, the smallest of Japan's "Big Four," is off 5.8 percent at 294,000 yen.

Sony one of few gainers

But Sony is producing a 0.79 percent gain to 5,330 yen after reporting heady profits on Thursday (full story).

The Japanese yen stands slightly weaker at 117.37 just before noon out of Hong Kong. The Korean won is also off at 1,182.0 in early afternoon in Seoul.

South Korea's stock market is again setting the selling pace. The Kospi is down 4.26 percent at 692.67 in early afternoon going.

The market leader, Samsung Electronics, is selling off hard, down 6.19 percent at 318,000 won. Overseas investors have been pulling out to free up cash at home.

Rival memory chipmaker Hynix Semiconductor is topping the volume and approaching the daily limit for a one-day move, down 14 percent at 445 won.

The selling is not restricted to chips. Cell-phone service SK Telecom is down 6.50 percent at 223,000 won.

TSMC limit down

Chip pressure is also hitting Singapore, where the Straits Times index is down 1.43 percent at 1,494.75 in late morning.


Australia and Hong Kong do not have heavy tech weightings but are also lower on banks and local factors

Chartered Semiconductor, the world chip foundry No. 3, sank 4.28 percent to S$2.91 in morning trade.

The two largest chip foundries are based in Taiwan. TSMC is down the daily 7 percent limit at T$54.00. Rival UMC is also "limit down" at T$33.50.

Those two stocks dominate trade on the Taipei exchange. More than any other Asian market, Taiwan tracks U.S. stock moves, particularly on Nasdaq.

Nasdaq fell 3.89 percent on Thursday to leave the 100 index at 1,240.08. But the Dow closed almost flat, down 0.06 percent, and the S&P 500 fell just over half a percent (full U.S. roundup).

Sydney banks, BHP lower

In Sydney, the S&P/ASX 200 index is down 1.22 percent at 3,005.2. Thursday's strong gainer, Telstra, is down 1.0 percent at A$4.77.

Mining company BHP Billiton is falling for a second day, off 1.7 percent to A$9.19, after releasing production figures for its fourth quarter.

National Australia Bank is down 2.1 percent at A$31.28, with other banks also lower.

Across the Tasman, the New Zealand Top 40 is down 1.73 percent at 1,960.01. Telecom New Zealand is off 1.47 percent at NZ$4.70.

BOC down again in Hong Kong

Hong Kong's Hang Seng is off 1.73 percent at 9,713.89. The market tracks U.S. stocks but does not have a heavy tech element.

Investors often use China's mobile-phone plays as proxies for techs. They are lower just before midday, with China Mobile down 4.59 percent at HK$19.75. China Unicom is off 6.54 percent at HK$5.00.

One day after its debut, the Bank of China Hong Kong is again down, off 1.23 percent to HK$8.00.

That's a 5.9 percent drop from its offer price of HK$8.50. Its Beijing-based parent company is planning a stock offering of its own in China.

Bank stock HSBC is flat at HK$84.25.