Asian Markets Update: Tech Shares Fight Back After Intel Upset

TOKYO -- Asian shares made a healthy comeback after losing ground late last week, shaking off the Intel (INTC Quote) shock and the possibility of a slowdown in chip and mobile-phone businesses.

The Nikkei 225 index rose 174.65, or 1.1%, to close at 15,992.90, while the Topix index, which includes all shares listed on the Tokyo Stock Exchange's first section, climbed 11.31 to stand at 1478.34. The Jasdaq small-cap index gained 0.51 to finish at 75.24, while the Nikkei over-the-counter index rose 6.11 to end the day at 1602.54.

News that Intel's third-quarter revenues would come in lower than expected still had some investors worrying, but as a new quarter begins in less than a week in Japan, those concerns were put aside for now. A joint intervention to prop up the ailing euro, along with a Group of Seven commitment to fight higher oil prices, also helped ease investor worries, traders said.

Chip and semiconductor-equipment makers all climbed higher, including Tokyo Electron, up 240 yen, or 2.2%, to 11,260 ($104.50), NEC(NIPNY Quote) up 45, or 1.8%, to 2555, and Toshiba, up 12, or 1.3%, to 918.

Buzz about Nippon Telegraph & Telephone(NTT Quote) and its subsidiary NTT DoCoMo today offset any Intel afterthoughts. NTT sank 10,000 to 1.2 million amid local reports indicating the telecom giant may place 200,000 to 300,000 new shares in the market in late October, or when the government plans to sell 1 million shares it owns in NTT. Some traders were concerned that supply could easily outstrip demand.

After inching higher, NTT DoCoMo lost 30,000, or 1.0%, to 3.04 million after a report in the Asian Wall Street Journal indicated the firm was ready to announce its often-rumored ties with America Online(AOL Quote) by the end of the week. The Asian Journal said DoCoMo would take a 43.3% stake in AOL Japan by investing $120 million. The announcement will also touch on plans to jointly develop mobile Internet services internationally, the report said.

The greenback climbed against the yen recently to buy 108.05, while the euro gained ground to fetch 1.141 against the dollar.

A bout of short-covering in the futures market helped Hong Kong's Hang Seng surge 816.07, or 5.6%, to close at 15,428.95. Computer maker Legend Holdings fared exceptionally well, climbing HK$1.05, or 17.5%, to 7.05 ($0.90) after falling 26.83% last week alone. Telecom shares also bounced higher, with China Mobile (CHL Quote) up 4.55, or 9.6%, to 51.75, and Hutchison Whampoa up 3.50, or 3.6%, to 101.50.

Korea's Kospi index jumped 31.38, or 5.7% higher, to stand at 584.63 thanks to a rally in bank shares. Korea Exchange Bank rose KW300, or 14.9%, to 2310 ($2.04), while Hanvit Bank gained 210, or 14.7%, to 1635. Financial shares were heavily sold over the past two weeks, or after Ford(F Quote) pulled out of its planned buy-out of troubled Daewoo Motors.

Elsewhere in Asia, Taiwan's TWSE index gained 65.37, or 1.0%, to finish the day at 6677.46.