Asian stocks end week with chip drubbing


Tokyo techs slid from the start, after Fujitsu slashed sales forecasts and NEC saw a sales decline for the first quarter

By Alex Frew McMillan

HONG KONG, China -- Asian stocks took a chip-induced drubbing on Friday, with Tokyo, South Korea and Taiwan selling off hard.

The selling started after Taiwan's TSMC lost 19 percent in U.S. trade on Thursday. It spread through Asia on Friday.

While tech stocks dived on the bad chip news, enveloping all Asian markets, there was no help from the United States, as the Nasdaq slumped nearly four percent. (Full U.S. roundup)

In Tokyo, the tech-fueled Nikkei tanked 3.41 percent to end down 9,591.03, at a five-month low close.

The broader Topix index didn't fare much better. It ended down 2.57 percent at 943.07. Banks and brokerages also saw strong selling.

Mizho, UFJ gap down in Japan

Mizuho Holdings, the biggest bank in the world by assets, fell 3.18 percent to HK$274,000 yen.

UFJ Holdings lost 5.45 percent to 295,000 yen. Brokerage Daiwa Securities collapsed 7.97 percent to 647 yen.


There was little to smile about anywhere in Asia for investors going long on the market, with stocks falling across the board

But most of the selling came in the tech sector, particularly chips. Toshiba Corp. slumped 5.29 percent to 448 yen. Hitachi gave up 3.26 percent to 683 yen.

NEC fell 5.08 percent to 728 after coming in with earnings on Thursday. Sales dropped 9 percent. (Full story)

Fujitsu was off 5.45 percent at 729 yen as it reported a first-quarter loss and cut its sales forecast for the year.

Even Sony surrendered, giving up morning gains to end down 0.19 percent at 5,280 yen. The market had first warmed to its earnings boost from Spider-man. (Full story)

The yen is weaker at 117.38 in early European trade out of Scotland. The Korean won is also weaker at 1,190.2 at the close of Seoul trade.

Taiwan starts selling pressure

Taiwan's TSMC fell the daily 7 percent limit in Taipei. The main index, the Taiex, started with large losses and closed that way.


Taiwan started the tech selloff rolling, after the largest listing gave a bearish forecast for the rest of the year

The Taiex dropped 3.76 percent to 4,855.34. TSMC is the largest listing and a favorite of international investors.

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)

TSMC's biggest rival, chip foundry United Microelectronics, also closed limit down at T$33.50. It posts earnings next week.

Both chip foundries serve a raft of international clients, with TSMC recently winning new business from U.S. cell-phone company Motorola.

Seoul stocks lurch on overseas sales

Korean stocks lurched well into the red. The Kospi ended down 3.55 percent at 697.84, the first finish under 700 this year.

Memory-chip maker Hynix Semiconductor topped the volume charts, down 14.4 percent at 445 yen.

Samsung Electronics, a staple of Korea-oriented international funds, fell 5.6 percent to 320,000.

Cell-phone service SK Telecom saw the second-heaviest selling by international investors. It dropped 5.24 percent to 226,000 won on the general weakness in techs and telecoms.

Investors took to selling in Singapore, too, where investor eyes turned to Chartered Semiconductor. They left the world's No. 3 chip foundry down 5.6 percent to S$2.87 at midday.

But Singapore arrested its fall in afternoon trade, and the Straits Times is down 1.19 percent at 1,498.39 coming into the close.

Mobile-phone players battered


The Bank of China closed on a gain in Hong Kong, with its parent promising a stock sale in mainland China

In Hong Kong, the Hang Seng was spared Asia's heaviest selling . But it still closed down 1.13 percent at 9,773.12.

Bank stocks lent the index support, with HSBC rising 0.89 percent to HK$85.00.

The Bank of China Hong Kong mustered a 1.85 percent climb, to HK$8.30. But it is still 2.35 percent down from its debut price of HK$8.50 on Thursday.

Its Beijing-based parent said it plans to list itself on China's A share market within three years. (Full story)

Trade- and services-driven Hong Kong tracks U.S. stocks, thanks to the city's dollar peg. China's mobile-phone plays serve as proxies for techs.

China Unicom suffered the most, down 4.67 percent to HK$5.10. Larger rival China Mobile fell 3.14 percent to HK$20.10.

Australia, NZ hit by investor wariness

Australian and New Zealand stocks fell on general investor gloominess about world markets and the economic recovery.

Those losses carried through Down Under on Friday. News Corp. fell 5.1 percent to A$8.46, with most of its sales in the United States.

That brought Sydney's S&P/ASX 200 index closed down 1.74 percent at 2,989.5 on large volume.

Thursday's strong gainer, Telstra, fell 1.5 percent at A$4.75, in the heaviest trade.

Rio Tinto closed down 4.2 percent at A$31.86, with BHP Billiton off 1.8 percent after releasing production figures for its fourth quarter.

Across the Tasman, the New Zealand Top 40 ended down 1.73 percent at 1,960.01. Telecom New Zealand finished off 2.94 percent to NZ$4.63.

Brewer Lion Nathan rose 0.92 percent to NZ$5.50 as a defensive play.