TOKYO -- A warning from U.S. semiconductor maker
about the firm's third-quarter revenue
hit Asian tech shares hard, renewing fears that growth in the chip market, and perhaps in telecom as well, would slow down in Asia.
Closing figures were ugly in Tokyo, but there were glimmers of hope that the market will rebound next week.
European Early Update: One Word -- Intel
Wall Street Gets Soaked by Intel's Surprise
Spread the Word: Tech Companies Plenty Exposed Over There
More Than 1,000 Funds Get Clocked by Intel Warning
Intel's Warning Wreaking Havoc in After-Hours Action
index shed 492.80, or 3.0%, to close at 15,818.25, while the
index, which includes all shares listed on the
Tokyo Stock Exchange's
first section, lost 46.78, or 3.1%, to finish at 1466.93. The
small-cap index shed 1.69, or 2.2%, to stand at 74.73, while the Nikkei
index fell 22.26, or 1.4%, to end at 1596.40.
Intel, the world's leading semiconductor maker, warned late Thursday afternoon that its third-quarter revenue would fall short of forecasts, primarily because of weak demand in Europe. The warning stunned Wall Street, and shares of Intel
dropped 20% in after-hours trading.
Japanese chip makers followed along with Intel's fall, including
, down 210 yen, or 7.7%, to 2510 ($23.48);
, down 1350, or 4.2%, to 30,700; and
, down 37, or 3.9%, to 906. Makers of chip-making equipment also tumbled, like
, down 1270, or 6.6%, to 17,980 and
, down 990, or 8.2%, to 11,020.
Other large-cap electronic and telecom shares also felt the punch, including
, down 650, or 5.2%, to 11,830;
, down 280,000, or 8.4%, to 3.07 million; and
, down 215, or 7.6%, to 2630.
Tokyo traders agreed that the market on Monday and Tuesday would closely follow moves on Wall Street. However, some local fund managers said many tech shares are at such a deep discount, it will be a prime time to buy shares.
"I'm definitely not doing anything until I see what happens to
on Friday, but I bet there are others like me that'll be interested in shares of large electronic manufacturers like
, since the firm is expected to post such great fiscal first-half results next month," said one Japanese fund manager, who declined to be named.
In addition, many experts reckon that investors may push up the Nikkei 225 index to at least 16,500 by the end of next week to end the fiscal first half on a higher note.
Thanks to the stock slump in Tokyo, the greenback edged higher recently to fetch 106.88 yen.
Korean stocks were all shook up by Intel's news, with the key
index declining 42.74, or 7.2%, to close at 553.25. Besides ongoing woes at
, many foreign investors today fled the tech sector as well.
fell KW30,000 ($168.74), or 13.6%, to 190,000, while rival
Hyundai Electronics Industries
lost 1550, or 9.8%, to 14,350.
index also slumped 551.57, or 3.1%, to close at 14,612.88 as telecom shares fell hard.
shed HK$4.10, or 8.0%, to 46.90, while
lost 1.05, or 6.3%, to 15.50.
After a near-16% sell-off yesterday, shares of
Pacific Century Cyberworks
held up pretty well by declining only 0.25, or 2.8%, to 8.80, but China's largest computer maker,
, fell 0.70, or 10.4%, to 6.05.
index fell 308.81, or 4.5%, to close at 6612.09, as
Taiwan Semiconductor Manufacturing
lost NT$8.00, or 7.0%, to 106.50 ($3.42).