Asian Stocks: Japan Falls, Led by Kyocera; Singapore Declines
By Yukiko Takai
Tokyo, Sept. 11 (Bloomberg) -- Japanese stocks fell, led by Kyocera Corp. and other computer-related companies, as expectations their U.S. peers will report slowing profit growth raised concern the global industry's earnings may miss forecasts.
The Nikkei 225 stock average dropped 224.07, or 1.4 percent, to 16,277.48, while the broad Topix index fell 1 percent to 1495.09. Hitachi Ltd., Tokyo Electron Ltd., and other semiconductor-related stocks fell after Intel Corp., the world's largest chipmaker, warned chip prices may fall.
``Japanese computer stocks will suffer for some time as we're likely to see more downward revision of fourth-quarter earnings from U.S. companies,'' said Shoji Hirakawa, a strategist at Kokusai Securities Co.
In other markets, Singapore's Straits Times index lost 1.1 percent as the Nasdaq Composite Index's 6 percent slide last week sparked worry Chartered Semiconductor Manufacturing Ltd. and other electronics companies may see fewer orders. Taiwan's TWSE Index fell 0.2 percent, paced by Acer Inc., after the island's biggest maker of personal maker of personal computer said its August sales fell 8 percent year on year. Australia's S&P/ASX 200 index shed 0.4 percent as declines in U.S. and European telecommunication shares sent Cable & Wireless Optus Ltd. and Telstra Corp. lower.
Japan's Kyocera, the world's leading manufacturer of ceramic microchip packages, fell 2.4 percent to 18,440 yen. Hitachi Ltd., one of the nation's largest chipmakers, declined 0.9 percent to 1,214 yen after Intel Corp. tumbled on concern profit growth may slow.
The Nasdaq Composite Index dropped 2.9 percent, rounding off a 6 percent loss for the week.
Tokyo Electron Ltd., the world's No.2 maker of equipment used to produce microchips, lost 2.9 percent to 12,880 yen.
The release of Japan's gross domestic production figures failed to give a boost to stock markets. Gross domestic product rose 1 percent, seasonally adjusted, in April to June from the previous quarter, the Economic Planning Agency said. Economists had expected a 0.7 percent increase. From a year earlier, the economy grew 1 percent.
The figures showed Japan's recovery is still being driven by state largess with money from last November's record budget. Business invested less than in the previous quarter.
``The overall figures were better-than-expected but the large part of the growth came from public investment,'' said Kazue Mayuzumi, a deputy chief operating officer of the Nikko Securities Co. ``Companies are spending less on investment, which is not a good sign.''
Singapore
Singapore's Straits Times Index lost 23.02 to 2114.44. Chartered Semiconductor, the world's No. 3 maker of chips to companies' design, fell 3.1 percent to S$12.60.
Venture Manufacturing Ltd. dropped 3.3 percent to S$20.60 on concern the city-state's third-largest electronics manufacturer by market value may report disappointing first half earnings, analysts and traders said. The company is expected to release its results today at 5 p.m. Singapore time.
Among gainers, Datacraft Asia Ltd., which set up a quarter of Asia's communications networking systems, added 0.6 percent to $8.80. It said it was awarded a S$25 million ($14.4 million) contract by DBS Bank to build a network for communication between computer systems using Internet technology.
MediaRing.com Ltd., an Internet telephony company, gained 2 percent to 50 Singapore cents. It aims to make a profit within two years, rather than five by focusing on business clients instead of online advertisements and seeking investors globally, the Business Times reported, citing chief executive Ng Ede Phang.
Taiwan
Taiwan's TWSE Index fell 12.35 to 7355.64, led by Acer after it said August sales fell 8 percent from a year earlier to about NT$8.3 billion. The stock fell 2.5 percent to NT$35.40
``People overestimated the demand for PCs in the first quarter,'' said Henry King, an analyst at Indosuez W.I. Carr Securities Ltd. in Taiwan who has a ``hold'' recommendation on Acer. Chipmakers ``Intel (Corp.) and AMD (Advanced Micro Devices Inc.) have postponed their product launches and end users have postponed their purchases'' of computers.
Quanta Computer Inc. lost 1.4 percent to NT$103.00. The world's second largest notebook computer maker by volume said August sales declined 10 percent from a year earlier to NT$6.2 billion.
Memory chipmakers fell. W.I. Carr's King said the price of the 2 megabit flash memory chips has fallen from $2.80 in July to $1.80 in September.
ProMos Technologies Inc., a memory chipmaker, shed 2.2 percent to NT$65.50. Winbond Electronics Corp., which makes memory chips and chips on a contract basis, fell 1.5 percent to NT$64.00.
Australia
Australia's S&P/ASX 200 index fell 11.70 to 3308.60. Cable & Wireless Optus and Telstra declined in tandem with telecommunication shares in Europe and the U.S. as investors judged them too expensive given their earnings outlook.
``Fundamentally, C&W Optus is very expensive,'' said Brad Ware, who helps manage A$300 million ($168 million) in Australian equities at Investors Mutual Ltd. in Sydney.
In the U.S., the S&P Long-Distance Telecommunications Index was the worst performer in the S&P 500 last week. In Australia, the ASX Telecommunications index fell 1.1 percent. Telstra fell 0.8 percent to A$6.21 and C&W Optus fell 2.3 percent to A$4.27.
Broken Hill Proprietary Co. fell 0.6 percent from an eight- month high to A$20.05. Officials of the 11-nation Organization of Petroleum Exporting Countries said before a meeting today in Vienna that the group had agreed to boost output by 800,000 barrels a day -- an increase of 2.8 percent -- starting Oct. 1.
Crude oil for October delivery dropped as much as 71 cents, or 2.1 percent, in Asian trading on the New York Mercantile Exchange, its lowest price since Sept. 1 and the second straight decline. ``There's concern about pressure on oil prices,'' which may be weighing on BHP, said Lucinda Chan, associate director at Macquarie Equities.
In other markets: See TNI ASIA MOV for detailed coverage
Korean markets are closed for the annual Chusok holiday.
Malaysia's 100-stock Kuala Lumpur Composite Index fell 1.5 percent to 728.69, its lowest level in nine months. Tenaga Nasional Bhd., the country's biggest company by market value, fell 5.2 percent to 11 ringgit after its former executive chairman rejected an offer to be its president and chief executive officer. That disappointed investors who were betting his return would allay concern about changes in company policies under a new management.
New Zealand's Top 40 index rose 0.04 percent to 2089.06. Telecom Corp. rose 1.1 percent to NZ$6.45 as some investors found value in shares of the nation's dominant phone company, which trade near the lowest level since 1997. Fletcher Energy fell 1.7 percent to NZ$8.70 after its 11 percent-owned, loss-making Capstone Turbine Corp. declined by 22 percent in market value over the previous four trading days. ``That (Capstone's drop) and the oil price'' is hurting Fletcher Energy shares, said Wayne Stechman, who helps manage NZ$750 million ($315 million) in New Zealand equities at Tower Asset Management Ltd.
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