Asian Tech Shares Don't Take Intel News Very Well - TheStreet

TOKYO -- A

warning from U.S. semiconductor maker

Intel

(INTC) - Get Report

about the firm's third-quarter revenue overnight hit Asian technology shares pretty hard, renewing fresh fears that the growth in the chip, and perhaps telecom market, would slow down in Asia as well.

After 20 minutes of trading, the

Nikkei 225

index was down 338.44, or 2.1%, at 15,972.61, while the

Topix

index, which includes all shares listed on the

Tokyo Stock Exchange's

first section, was down 34.25, or 2.3%, to 1479.46.

Korea's

Kospi

index was also down 3.2% shortly after opening, while Australia's All Ordinaries index was down 1.9%.

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 chipmakers followed right along with Intel's fall, with

NEC

(NIPNY)

down 100 yen, or 3.7%, to 2620 ($24.49),

Advantest

down 610, or 3.2%, to 18,640 and

Tokyo Electron

down 600, or 5.0%, to 11,410.

Other large-cap electronic and telecom shares also felt the punch, with

Sony

(SNE) - Get Report

dropping 480, or 3.9%, to 12,000;

Nippon Telegraph & Telephone

(NTT)

shedding 30,000, or 2.4%, to 1.23 million; and

Fujitsu

(FJTSY)

losing 105, or 3.7%, to 2740.

Key psychological support for the Nikkei 225 index was pegged at 15,600, and 1200 for the Topix index. Many institutional investors and local fund managers had previously stepped into the market to bargain-hunt for tech shares when the indices hit these levels over the past several weeks.