Tokyo stocks ease, chips slide on Intel
Asian markets mixed after Wall Street rally
By Osamu Tsukimori, CBS MarketWatch
Last Update: 9:19 PM ET Jan. 14, 2004
The Nikkei Average shed 44 points, or 0.4 percent, to 10,818.80. The broader Topix lost 3 points to 1,054. The dollar was slightly higher against the yen.
Other Asian markets were mixed after Wall Street rallied on the back of positive economic data. South Korea and Taiwan were lower while Australia and Singapore were flat.
Japanese technology stocks fell as investors took profits after Intel (INTC: news, chart, profile) announced better-than-expected earnings after the bell Wednesday.
"Investors are taking profits after Intel, Yahoo and Apple announced their earnings that came pretty much within the range of expectations, and the feeling is that this is the climax of their strong points," said Masatoshi Sato, senior strategist at Mizuho Investors Securities.
Chip-firm Advantest (ADTTF: news, chart, profile) fell 1.9 percent to 8,830 yen. Toshiba (TOSHF: news, chart, profile) slipped 1.8 percent to 449 yen, while Fujitsu (FJTSY: news, chart, profile) shed 1.5 percent to 674 yen.
Sony (SNE: news, chart, profile), however, rose 1.5 percent to 4,140 yen as investors continued to pile into the consumer electronics giant on the back of a recent Goldman Sachs upgrade of the stock. The Nihon Keizai Shimbun also reported that IBM (IBM: news, chart, profile) will provide Sony with software for conducting images searches in products such as DVD recorders. "Sony has been behind other Japanese electronics companies in advancing into the digital/consumer electronics era but today's rally came mainly from the Goldman Sach's upgrade," said Sato. Read pulse.
Banking and auto stocks were mixed. Top bank Mizuho Financial (MZHOF: news, chart, profile) edged down 0.3 percent to 324,000 yen.
Automaker Toyota (TM: news, chart, profile) fell 0.3 percent to 3,640 yen but Nissan (NSANY: news, chart, profile) rose 0.5 percent to 1,189 yen.
Steel stocks such as JFE Holdings (JFEEF: news, chart, profile) were weaker on a Nikkei report that Japan's top steelmakers have agreed to a 19 percent hike in iron ore prices. JFE shed 1.4 percent to 2,765 yen, while Nippon Steel fell 1.8 percent to 219 yen. The price increases -- the second year in a row -- will likely hurt the profitability of the firms as they pass on costs to their buyers. Read pulse.
The dollar rose slightly to 106.30 yen in Tokyo from 106.15 yen in late Wednesday New York trade.
Korea minister resigns
South Korea's foreign minister Yoon Young Kwan submitted a letter of resignation to President Roh Moo Hyun and Roh has accepted it, Yonhap news agency reported Thursday. Media reports say that Yoon resigned to take responsibility for "disparaging" remarks that his subordinates made that were not in line with Roh's policy toward the United States.
Seoul's Kospi index fell 0.4 percent to 846. Chip giant Samsung Electronics (SSNGY: news, chart, profile) fell 0.5 percent to 492,000 ahead of the release of its fourth-quarter earnings later today. Shares of Korean steelmaker Posco (PKX: news, chart, profile) slipped 0.6 percent to 165,000 won after it posted 462.3 billion won in net profits for the fourth quarter, up about 27 percent from a year ago. Revenues rose to 3.93 trillion won from 3.2 trillion. It also forecast a record 2004 operating profit of 3.18 trillion won, up 4 percent from 2003.
TOKYO (CBS.MW) - Tokyo stocks fell by midmorning trade Thursday as semiconductor-related issues came under pressure after Intel reported its fourth-quarter results. |
