The SBN INTC story seems to be at odds with this Bloomberg story re early trading in the Far East, etc...
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07/15 22:44
Asian Stocks: Japan's Nikkei Rises; South Korea Chipmakers Gain
By Tomoko Yamazaki
Tokyo, July 16 (Bloomberg) -- Japan's Nikkei 225 stock average rose as Tokyo Electron Ltd. and other semiconductor- related shares followed a rally by Intel Corp., prompting some investors to anticipate a recovery in industry demand.
The Nikkei gained 0.2 percent to 10,398.90, with three biggest gainers being chip-related companies. Intel surged 6.3 percent yesterday on speculation that its second-quarter earnings report today will signal a recovery in the industry. The Philadelphia Semiconductor Index, an index tracking the 17 of the largest chip-related companies, jumped 4.8 percent to its highest level since July 2.
``Computer-related companies may offer some good value for investors especially if we see a turnaround in demand,'' said Yukihisa Sanada, who manages $86 million at UAM Japan Inc.
In other markets, South Korea's Kospi index gained 0.5 percent, led by Samsung Electronics Co. as rising memory chip prices signaled chipmakers' earnings may improve. Australia's S&P/ASX 200 Index dropped 0.7 percent, led by WMC Ltd., after the company said lower production at its Olympic Dam mine will hurt earnings.
Japan
Japanese chip-related shares gained on optimism that U.S. rival Intel may say demand is recovering when the world's largest chipmaker reports later today also pushed them higher, some investors said. Since Intel lowered its second-quarter sales forecast in June, its shares have lost about 13 percent.
``Much of the bad news after Intel's earnings cut earlier have been factored into many of the Japanese chip-related companies' share prices,'' said Shuji Terao, who helps manage about $1.7 billion at Mitsui Sumitomo Insurance Asset Management Co.
Tokyo Electron, the world's second-largest maker of semiconductor production equipment, advanced 2.5 percent to 7,320. Advantest Corp., the world's biggest maker of equipment used in the process of making computer memory chips, climbed 2.1 percent to 7,260.
The Topix index fell 0.2 percent to 998.72, falling below the 1,000-level for the first time since June 27.
NTT DoCoMo Inc. and other companies that make up a large part of the Topix index fell on concern U.S. Federal Reserve Chairman Alan Greenspan may suggest in a congressional testimony later today that the U.S. economic rebound is slowing, hindering Japan's export-led recovery.
DoCoMo, Japan's largest company by market capitalization, dropped 1.6 percent to 252,000 yen. Its parent Nippon Telegraph & Telephone Corp., the third-largest company in Japan, declined 1.9 percent to 473,000 yen.
South Korea
The Kospi added 3.88 to 787.40. Prices of the benchmark dynamic random access memory chip yesterday jumped 7.2 percent, according to DrameXchange.com, a Taiwan-based clearinghouse.
Rising chip prices may boost earnings at companies including Samsung Electronics. The world's top DRAM maker added 1.6 percent to 358,500 won. Trigem Computer Inc., Korea's biggest maker of personal computers by volume, rose 1 percent to 9,900 won.
Some investors also bought stocks in anticipation companies including Samsung Electronics may also report better second- quarter profit. SK Telecom Co., Korea's top mobile phone operator, yesterday said net income in the quarter almost doubled from last year.
``SK Telecom sent a signal that profits are improving,'' said Shin Sam Chan, a strategist at Hana Securities Co. in Seoul. ``Stock prices should reflect earnings and investors are expecting second-quarter corporate profits to outperform first-quarter earnings.''
Australia
The S&P/ASX 200 Index slumped 24.26 to 3163, declining for a fourth day in five. WMC, Australia's third-biggest mining company, slid 5.6 percent to A$8.30. It said maintenance work at its Olympic Dam copper mine will cut profit in the second half of this year and 2003.
Relining the furnace at the No. 3 Australian mining company's South Australian mine will take around 40 days and reduce its copper production for the rest of this year and into 2003, WMC said in a statement.
BHP Billiton, the world's biggest miner, lost 1.3 percent to A$9.82 and Rio Tinto Group, the world's fourth-largest copper miner, declined 1.8 percent to A$33.65.
WMC's drop ``probably pulled down BHP Billiton and Rio Tinto,'' said Andrew Sekely, head of Australian equities at Intersuisse Ltd. in Sydney. |
