Asian Stocks Slide; Hitachi, Samsung Electronics Lead on Intel
By Tomoko Yamazaki
quote.bloomberg.com
Tokyo, June 7 (Bloomberg) -- Asian stocks fell, led by Hitachi Ltd. and Samsung Electronics Co. after industry leader Intel Corp. reduced its sales forecast, suggesting demand for semiconductors from personal computer makers hasn't recovered.
Japan's Nikkei 225 stock average dropped 1.6 percent, while indexes in South Korea, Taiwan, Singapore, Hong Kong and Australia also fell. The Bloomberg Asia-Pacific Semiconductors Index, which rallied 53 percent since Sept. 11, slid to a 20-week low today as optimism faded that demand has rebounded on the back of a U.S. recovery.
``Chipmakers have drawn down their excess inventories, but we still haven't seen any convincing signs demand has actually recovered,'' said Hajime Yagi, who helps manage about $1 billion at Meiji Dresdner Asset Management Co. ``It's too early to say whether industry demand has actually bounced back.''
Semiconductor-related stocks also tracked the Nasdaq 100 Globex Futures Index's 3 percent slump after Merrill Lynch & Co. cut Intel's rating. The Semiconductor Industry Association this week cut its sales growth forecast for 2002 by almost half.
Hitachi, Japan's third-biggest chipmaker, declined 2.5 percent to 860 yen, while Toshiba Corp., the world's second- largest chipmaker, dropped 2.3 percent to 504 yen. NEC Corp., the world's No. 3 chipmaker, fell 1.2 percent to 902 yen.
The Nikkei slumped 181.24 to 11,393.70, while the broader Topix index lost 0.9 percent to 1097.90, its first foray below 1100 on an intraday basis.
Merrill Downgrade
Before Intel's revised forecast, Merrill analyst Joseph A. Osha cut the company's rating to ``neutral'' from ``strong buy.'' He reduced his ratings on six other chip stocks, saying a rebound in semiconductor demand won't exceed forecasts that already reflect any ``reasonable recovery'' in the second half.
Chip-related shares dropped as Tokyo Electron Ltd., the world's second-largest maker of semiconductor production equipment, slid 5.4 percent to 7,940 yen. Advantest Corp., the world's biggest maker of equipment used in the process of making computer memory chips, declined 5.9 percent to 7,940 yen. |
