"Asian Stocks Fall, Led by Tokyo Electron, Samsung Electronics"
12/21 01:33 By Tomoko Yamazaki
Tokyo, Dec. 21 (Bloomberg) -- Asian computer-related stocks fell, led by Tokyo Electron Ltd. and Samsung Electronics Co., after Juniper Networks Inc. halved its profit forecast, tempering optimism demand for electronics may be recovering.
Japan's Nikkei 225 stock average fell 1 percent as Korea's Kospi index slid 3 percent. Taiwan Semiconductor Manufacturing Co. and Singapore's Chartered Semiconductor Manufacturing Ltd. also declined. An industry group yesterday said sales of chipmaking equipment fell for an eighth month in October.
``When you take a look at technology stocks' share prices, they are still expensive, relative to their profit outlooks,'' said Dai Nishiyama, who helps manage about $7.8 billion in investments at SG Yamaichi Asset Management Co. Nishiyama said he increased his stake in computer-related shares this month to be in line with the Topix index's 17 percent weighting.
In other markets, Hong Kong's Hang Seng Index fell 3.7 percent, led by HSBC Holdings Plc, on concern about its Latin American business after the resignation of Argentine President Fernando de la Rua.
U.S.' Juniper slashed its fourth-quarter profit forecast, sending the Nasdaq Composite Index 3.3 percent lower, its biggest drop since Oct. 29.
Japan's Tokyo Electron, the second-largest maker of semiconductor production equipment, fell 8.8 percent to 6290 yen, while Advantest Corp. plunged 8.2 percent to 7300 yen. The two companies led the Nikkei's decline.
Computer-related stocks gained a fifth of their value in the past three months on optimism they'll be the first to benefit from an economic recovery in the U.S. because they were the first to start clearing excessive inventories.
NEC Corp., the third-biggest chipmaker, which also makes network equipment, dropped 3.8 percent to 1305 yen. Fujitsu Ltd., Japan's fourth-largest chipmaker, which manufactures network equipment, declined 2 percent to 923 yen.
Sony Corp., which makes Vaio brand computers, lost 4.7 percent to 5690 yen. Toshiba Corp., the largest maker of notebook computers, dropped 3.8 percent to 429 yen.
Microsoft, the largest software maker, dropped 3.9 percent following an announcement about flaws on Windows XP. The flaws may delay a recovery in demand for computers made by companies such as Sony and Toshiba that use Microsoft software, which powers 95 percent of the world's personal computers.
The Nikkei 225 fell 99.07 to 10,335.45. The broader Topix index slipped 0.5 percent to 1007.52.
Korea
The Kospi fell 19.80 to 644.71. Chipmakers declined after the Philadelphia Stock Exchange Semiconductor Index, which international investors track to benchmark the performance of the industry, slumped 5.6 percent.
Samsung Electronics, the biggest computer-memory-chip maker, slumped 5.1 percent to 251,500 won. Hynix Semiconductor Inc., the third largest, lost 4.4 percent to 1950 won.
Stocks also declined as a possible default by Argentina on its $155 billion of debt may prompt investors to pull out of emerging markets.
The Argentina crisis may ``alarm international investors from investing in emerging markets,'' said Kang Shin Woo, who oversees $153 million at Good Morning Investment Management Co.
Taiwan
Taiwan's TWSE Index fell 3.8 percent to 5109.24, its biggest decline since Oct. 2.
Taiwan Semiconductor, the biggest made-to-order chipmaker, fell 6.4 percent to NT$80 on a report government funds will sell NT$26.4 billion ($754 million) worth of the company's shares.
The Economic Daily newspaper said today the National Stabilization Fund and the cabinet's development fund plan to sell off a combined 330 million shares in the U.S.
``We are reducing our position on stocks in order to do some profit taking,'' said Cheng Yi-sheng, who helps manage about $43 million in investments at Taiwan Securities Ltd. Taiwan Securities has sold Taiwan Semiconductor shares following their 87 percent gain since their year low on Oct. 3.
Singapore
Singapore's Straits Times Index fell 1 percent to 1577.61. Chartered Semiconductor, the No. 3 maker of chips to companies' design, fell 3.7 percent to S$4.72, following the 2.6 percent drop in its American depositary shares yesterday.
ST Assembly Test Services Ltd., Asia's second-largest semiconductor tester, fell 4.5 percent to S$2.11. ST Assembly ADRs dropped 4.2 percent in U.S. trading yesterday.
Property stocks rose for a fifth day on expectations demand for homes will increase after more developers cut prices on private homes. Developers have been reporting brisk sales of private homes as they cut prices or offered new homes at lower- than-expected rates in recent weeks to boost demand.
City Developments Ltd., the second-largest publicly traded developer, gained 2.4 percent to S$6.30.
Hong Kong
The Hang Seng Index fell 432.74 to 11,168.40. HSBC paced declines as the resignation of de la Rua after two years of failed economic policy heightened the prospect of mass debt defaults. HSBC, which controls Argentina's eighth-biggest bank and fourth-biggest pension fund, lost 4 percent to HK$89.75.
Hutchison Whampoa Ltd., the biggest Asian wireless phone investor in Europe, added to losses on a report Chairman Li Ka- shing may invest $1 billion into Global Crossing Ltd., an unprofitable operator of a global telephone and data network.
``There are uncertainties about potential debt assumptions and future operating expenses after the transaction,'' said Carl Wong, an analyst at HSBC Securities Asia Ltd. ``It's a new business for Hutchison.''
Hutchison lost 3.3 percent to HK$73.75.
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