Asian Stocks: Japan's Tokyo Electron, Mochida Fall; Taiwan Down
By Tomoko Yamazaki
quote.bloomberg.com
Tokyo, March 12 (Bloomberg) -- Japanese stocks fell, led by Tokyo Electron Ltd. and other electronic component makers, after machine orders had a record plunge, fueling concern their shares have risen too much given the earnings outlook.
``The machine orders were a huge minus and a big negative surprise,'' said Masanori Mizuno, who helps manage $27 billion in assets at Daiwa SB Investments Ltd. ``Investors have pushed up component manufacturers on expectations business conditions will steadily improve, so it's not difficult to imagine the figures triggering some selling.''
The Topix index fell 0.9 percent to 1115.00, with computer- related stocks making up more than a third of the decline. The Nikkei 225 stock average declined 1.1 percent to 11,792.77, after gaining 12 percent this year. Mochida Pharmaceutical Co. dropped on a report that the government plans to cut the average price of drugs that hospitals charge the national health insurance system.
In other markets, losses in chip-related stocks led Taiwan's TWSE Index 0.9 percent lower and Singapore's Straits Times Index down 0.5 percent on concern personal-computer demand will slow. South Korea's Kospi index rose 1.1 percent as banks gained after a report said Hana Bank is in talks to merge with Korea First Bank. Hong Kong's Hang Seng Index rose 0.3 percent, led by China Mobile (H.K.) Ltd. and other mainland shares, after China's central bank said citizens may be allowed to invest in the city's stock market.
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