Chip-stock selling hits Asia's markets


Chip stocks through the region were depressed after Intel gave a less-than-upbeat take on the rest of the year

Alex Frew McMillan
CNN

HONG KONG, China (CNN) -- Taiwan and Tokyo led Asian markets lower on Wednesday, with South Korea giving up its gains in afternoon trade.

Only New Zealand and the Philippines ended in positive territory, as chip-stock selling hit most tech-oriented markets.

Investors were also processing a run of earnings, with Telstra Corp. disappointing analysts in Australia.

Stocks there ended down 0.72 percent. But it was Taiwan that suffered the most after the world's largest chipmaker, Intel, gave a tentative outlook for the year at a Malaysia conference. (Full story)

In Tokyo, the tech-tinged Nikkei average gave up 1.42 percent to finish at 9,766.73. The broad Topix index ended down 0.93 percent at 953.92.

After Intel, Tokyo-based Toshiba is the largest chipmaker in the world. It lost 3.26 percent to 415 yen.

Most other chip companies suffered similar losses, Fujitsu losing 3.74 percent to 643 yen and Hitachi falling 3.82 percent to 655 yen.

Advertising giant Dentsu was also down hard, off 2.55 percent to 534,000 yen, with prospects for economic recovery still uncertain.

Honda fell 2.52 percent to 5,030 yen. But most losses were modest, with banks only slightly in the red.

Sony mustered a 0.19 percent rise to 5,350 yen, and Japan Tobacco led a narrow group of gainers, up 1.67 percent to 791,000 yen. Cell-phone service KDDI also rose, up 0.59 percent to 339,000 yen.

The yen strengthened in morning trade and stands at 118.56 to the U.S. dollar, which has weakened on the chance of war in Iraq.

Taiwan down after Intel's outlook


Banks only showed slight losses, and big caps like Sony and KDDI closed on gains

The cool outlook from Intel knocked Taiwan's market, where the Taiex finished down 1.83 percent at 4,789.63.

TSMC dropped 1.96 percent to T$50.00, with smaller chip foundry UMC crunching 4.44 percent lower to T$28.00.

Turnover was light, with electronics stocks dominating the selling.

The selling in Taipei is a carry through from a 3.16 percent fall on Nasdaq overnight. The Dow Jones industrial average fell 1.06 percent. (Full U.S. roundup).

Korea down after economic reports

South Korea's market posted gains for much of the day but surrendered toward the close. The Kospi ended narrowly in the red, down 0.02 percent to 724.05.

The world's largest memory chip maker, Samsung Electronics, created a headwind with a 1.5 percent fall to 328,000 won. It has now finished its stock buyback program.

The central bank reported that the current account fell sharply, mainly due to people travelling overseas. (Full story)

Industrial output for July rose 1.9 percent over the month before, when seasonally adjusted, lower than expected.

There was good news for Daewoo Motor Sales, up 11 percent to 8,800 won on a report its suppliers will get support from a state-run bank.

The company had to stop production because it has run out of parts, in a dispute with suppliers claiming millions in payments.

Hyundai Motor Co. rose 2.5 percent to 33,200 won.

Telstra deals Sydney index a blow


Taiwan and Tokyo saw the largest losses in Asia, but only New Zealand made it into the black

In Australia, the S&P/ASX 200 index passed the finish line down 0.72 percent at 3,137.7.

Phone company Telstra Corp. dropped 3.2 percent to A$4.80, its lowest in two weeks, after reporting full-year earnings.

It posted earnings of A$3.66 billion, below analyst expectations. (Full story)

Corporate-services group Brambles plummeted 10.6 percent to A$7.42 on its first full-year figures since merging with GKN's industrial-services division (Full story)

NAB falls as it leaves U.S.

National Australia Bank, the country's biggest, fell 0.4 percent to A$34.54 after cutting its earnings forecast and saying it had exited its disastrous move into the U.S. mortgage market (Full story)

News Corp. added to the selling pressure with a 3.6 percent fall to A$9.95 after U.S. losses.

New Zealand's Top 40 posted yet another gain but was virtually alone. It ended up 0.3 percent at 2,064.96.

Telecom New Zealand investors bid that company up 1.38 percent to NZ$5.06 after Telstra's results.

Air New Zealand ended down 1.59 percent to NZ$0.63 after unveiling a NZ$318.5 million loss for the year through June, stemming from Ansett's collapse. (Full story)

Property down in Hong Kong

Hong Kong's Hang Seng index called it a day down 0.54 percent at 10,130.25.

The Bank of China Hong Kong drifted 1.16 percent to HK$8.55, just above its HK$8.50 debut price, after it put out its first set of earnings since going public. (Full story)

Property stocks were lower by the same margin, that subindex falling 1.16 percent.

PCCW fell 1.35 percent to HK$1.46 on rumors of more layoffs at the troubled telecom. Computer maker Legend Computer, the mainland's largest, eased 0.84 percent to HK$2.95.

Singapore's Straits Times index was down 0.3 percent at 1,504.90 in late trade, with chip foundry Chartered Semiconductor down 2.06 percent to S$2.38.