Asia Markets
Nikkei off 2.6%, hit by terror fears
Hong Kong shares dive amid drop in tech issues
By Mariko Ando, CBS.MarketWatch.com
Last Update: 5:41 AM ET Oct 18, 2001
TOKYO (CBS.MW) -- Growing fears of bioterrorism coupled with Wall Street's overnight plunge knocked the wind out of Asia's technology shares on Thursday.
Tokyo's leading Nikkei Average snapped a two-day winning streak and sank 2.6 percent. Hong Kong's Hang Seng tumbled 3.7 percent to end below the 10,000 threshold. Taipei and Seoul share prices also slipped.
"Fears is mounting that more and more U.S. people will stay inside their home because of anthrax outbreak ... That means they will spend less for shopping, and that would affect exporters' businesses," said Teruhisa Ishikawa, a deputy manager of investment products planning section from Izumi Securities.
The dollar was quoted at 120.93 yen in Tokyo, down from 121.43 yen in New York late Wednesday.
In the equities market, Japan's Nikkei dropped 280.60 points to 10,474.85. The broader TOPIX fell 1.8 percent to 1,068.48.
Leading technology shares suffered from heavy selling amid renewed fears about the U.S. economy and how that would potentially hurt Asia's exporters.
"The market sentiment is still very fragile and the Nikkei could easily slip back to the 9,000 level," Ishikawa said. "It depends on the outcome of earnings report at home."
Accentuating the impact that the anthrax scare is causing, the U.S. House of Representatives has shut down for five days as it undergoes a security sweep following news that dozens of staff in one Senate office were exposed to the anthrax bacteria. See full story.
In New York, the Nasdaq tumbled 4.4 percent and the Dow fell 1.6 percent.
Sony (SNE) (6758) lost 2.4 percent to 4,930 yen and NEC (NIPNY) (6701) dropped 2.2 percent to 1,163 yen. Tokyo Electron (8035), a maker of semiconductor-manufacturing equipment, dived 9 percent to 4,980 yen.
But Fujitsu (FJTSY) (6702) ended unchanged at 1,010 yen. The company said it is in talks with U.S. computing giant IBM (IBM) to form "various kind of alliances in individual businesses," including software and hardware. But the company said nothing concrete has been decided, denying a report in the daily Nihon Keizai that it will soon form a comprehensive venture.
Bucking a weakness in the market, Mazda Motor (MZDAF) (7261) rallied 5.8 percent to 201 yen. The company said it expects to regain profitability for the first half ended Sept. 30 for the first time in two years thanks to its restructuring efforts.
HK below 10,000; Seoul, Taipei also weak
Hong Kong's key Hang Seng Index tumbled 380.20 points, or 3.7 percent, to 9,880.61 -- its lowest close since September 27. Broad-based issues suffered from selling on fears that biological attacks in the U.S. will further dampen consumer confidence.
China Mobile (CHL) (0941) dived 6.8 percent to HK$21.30 and rival China Unicom (CHU) (0762) tumbled 5.7 percent to HK$7.45, bringing its loss at nearly 12 percent in the last four-day losing streak.
Market confidence towards these telecom shares remained weak despite companies' statements that Beijing's plan for restructuring of the mainland telecoms industry would not involve the issuance of a third mobile phone license.
Hutchison Whampoa (HUWHY) (0013), which invests heavily in third-generation mobile phone services worldwide, lost 3.8 percent to HK$62.75.
Shares of Pacific Century CyberWorks (PCW) (0008), Richard Li's internet investment vehicle, fell 1.2 percent to HK$2.05.
South Korea's Kospi lost 0.8 percent to 524.21 as both technology and telecom issues suffered from selling.
Samsung Electronics, the world's top maker of computer memory chips, shed 0.6 percent to 163,000 won. Investors showed little enthusiasm to the company's announcement late Wednesday that it will join hands with Microsoft (MSFT) to develop hardware and software for U.S. software giant's eHome Division.
State-run Korea Telecom (KTC) saw its shares close down 3.1 percent at 45,800 won.
In Taiwan, export-oriented technology shares came under pressure on ongoing pessimism over a recovery in the sector. The leading Weighted Index shed 0.2 percent to close at 3,811.20.
Shares of Hon Hai Precision Industries (HNHXY) sank 3.6 percent to NT$121.00 and Compal Electronics (HNHXY) lost 2.8 percent to NT27.40.
Hit by an order crunch following the Sept. 11 terror attacks and a destructive typhoon, Taiwan's industrial output is likely to contract sharply in September, said a Reuters citing its poll. The Ministry of Economic Affairs is scheduled to announce industrial output data next Monday.
Australia's All Ordinaries Index dropped 1.1 percent to close at 3,134.10. The natural resources sector lost ground following a recent rally.
BHP Billiton (BHP) lost 1.2 percent to A$9.35. The South African metalworkers union is scheduled to launch job site actions at BHP Billiton's Bayside and Hillside aluminium smelters from Thursday, to press their demands for a 15 percent wage increase.
The country's flagship career Qantas announced earlier in the day it's in talks with Boeing and Airbus about a new aircraft order worth $1.5 billion Australian dollars ($766 million). Trading in Qantas shares was halted Thursday pending the announcement. See full story.
New Zealand's benchmark NZ Top 40 closed down 1.1 percent at 1,901.67. Shares of Telecom NZ (NZT), which has a 21 percent weighting in the NZ-40 index, fell 1.1 percent to NZ$4.31.
Singapore's Straits Times Index dropped 2.5 percent to 1,406.74, led by a 3.8 percent fall in Chartered Semiconductor Manufacturing (CHRT) to S$3.52.
Elsewhere in the region, the PSE Composite of the Philippines lost 1.4 percent to 1,028.40 and Malaysia's leading KLSE Composite fell 0.1 percent to 620.77 points.
-------------------------------------------------------------------------------- |
