Asian Stocks Slide, Led by Sony, Samsung Electronics, Hutchison
Tokyo, Dec. 4 (Bloomberg) -- Asian stocks slid, with Japan's Nikkei 225 Stock Average completing its biggest drop in three weeks. Sony Corp. and Samsung Electronics Co. fell after rivals in the computer and mobile-phone businesses cut sales forecasts.
The Nikkei lost 2.2 percent to 9006.73, its biggest decline since Nov. 11, at the 3 p.m. close in Tokyo. The Topix index shed 1.8 percent to 874.66, with computer-related shares accounting for almost a third of the drop. South Korea's Kospi index had its largest slump in almost two months, falling 3 percent.
Hewlett-Packard Co. cut its sales forecast after saying companies remain reluctant to boost spending on computers, while Nokia Oyj said global handset sales will rise at least 10 percent next year, instead of its original 15 percent forecast. About half of Hewlett-Packard's desktop computers are made in Asia.
``There aren't any convincing fundamental reasons out there to buy technology stocks right now,'' said Youichi Yanai, who oversees about $24 billion in assets at Bank of Tokyo Mitsubishi Ltd. ``Demand may still exist but it's not leading to any kind of improvement in profits.''
He's buying stocks with higher dividends, such as supermarket operator San-A Co. and Shimojima Co., a packaging materials wholesaler.
South Korea's Samsung Electronics, which supplies chips to Hewlett-Packard and is the world's third-largest mobile-phone maker, accounted for a third of the Kospi's slide.
Hon Hai Precision, Sony
Taiwan's TWSE Index dropped 1.4 percent. Hon Hai Precision Industry Co., which supplies computer parts to Hewlett-Packard, led declines. Hong Kong's Hang Seng Index was on track for its biggest slump in more than three weeks as Hutchison Whampoa Ltd., Asia's biggest investor in European phone companies, fell.
Benchmarks in Singapore, Australia, New Zealand, Indonesia, India and the Philippines declined, while indexes gained in Malaysia and China.
Sony, the maker of Vaio computers, fell 3.5 percent to 5,310 yen. Fujitsu Ltd., Japan's biggest business-computer maker, dropped 4.8 percent to 415 yen.
After the U.S. market closed, Hewlett-Packard Chief Executive Officer Carly Fiorina cut the company's sales-growth forecast to 2 percent to 4 percent for the year ending Oct. 31, 2003, from a 4 percent to 6 percent range.
The world's second-largest computer maker also doesn't plan to increase its fiscal first-quarter forecast for profit of 27 cents a share on sales of $18.4 billion, she said. Shares of Hewlett-Packard fell 3.4 percent in U.S. after-hours trading.
NEC, Murata Manufacturing
Nokia, the world's biggest cell-phone maker, said industrywide sales will rise 10 percent or ``slightly more'' next year. The company also said wireless-equipment sales will drop 20 percent this year and 10 percent in 2003.
NEC Corp., Japan's largest mobile-phone maker, slumped 5.9 percent to 495 yen. Murata Manufacturing Co., the world's biggest maker of ceramic capacitors used to regulate electricity in cell phone handsets, tumbled 7.9 percent to 5,450 yen.
Matsushita Electric Industrial Co., which agreed with Nokia to develop new technology for handsets last month, fell 3.4 percent to 1,232 yen.
Korea's Kospi shed 22.07 to 714.50, its biggest slide since Oct. 10. Samsung Electronics dropped 5 percent to 373,500 won.
Samsung SDI Co., which supplies mobile-phone screens to Nokia, declined 6 percent to 82,500 won. Trigem Computer Inc., which supplies personal computers to Hewlett-Packard, slipped 6.9 percent to 7,990 won.
Lost Interest
``The lower forecasts make some investors lose interest in computer-related stocks,'' said Kim Young Hwan, who holds Samsung Electronics shares among about $250 million he manages at Mirae Asset Investment Management Co.
The TWSE dropped 66.44 to 4727.49. Hon Hai, the island's largest maker of computer parts, shed 1.9 percent to NT$131.5. Asustek Computer Inc., which makes computer circuit-boards for Hewlett-Packard, fell 0.7 percent to NT$75.5.
``We're avoiding computer-related stocks,'' said Katherine Chen, who manages $23 million in stocks at International Investment Trust Co. ``We're not optimistic about computer demand this year or next.''
Hong Kong, Australia
The Hang Seng Index lost 1.4 percent to 10,081.09, heading for its biggest slide since Nov. 11. Hutchison slipped 3.2 percent to HK$53.25. China Mobile (H.K.) Ltd., the country's largest mobile-phone service provider, dropped 1.6 percent, to HK$21.40.
Australia's S&P/ASX 200 Index dropped 1.5 percent to 3027.20. News Corp., which gets three-quarters of its sales in the U.S., shed 3.9 percent to A$12.45.
Advertising spending in the U.S. and Europe will be little changed next year, and a full recovery isn't expected until 2004, said Adam Smith, an analyst for industry forecaster Zenith Optimedia Group.
``The ad market will definitely improve but we don't know when and we don't know how,'' said Albert Hung, who oversees $450 million at Tower Asset Management Australia Ltd.
Tokyo, Dec. 4 (Bloomberg) -- Asian stocks slid, with Japan's Nikkei 225 Stock Average completing its biggest drop in three weeks. Sony Corp. and Samsung Electronics Co. fell after rivals in the computer and mobile-phone businesses cut sales forecasts.
The Nikkei lost 2.2 percent to 9006.73, its biggest decline since Nov. 11, at the 3 p.m. close in Tokyo. The Topix index shed 1.8 percent to 874.66, with computer-related shares accounting for almost a third of the drop. South Korea's Kospi index had its largest slump in almost two months, falling 3 percent.
Hewlett-Packard Co. cut its sales forecast after saying companies remain reluctant to boost spending on computers, while Nokia Oyj said global handset sales will rise at least 10 percent next year, instead of its original 15 percent forecast. About half of Hewlett-Packard's desktop computers are made in Asia.
``There aren't any convincing fundamental reasons out there to buy technology stocks right now,'' said Youichi Yanai, who oversees about $24 billion in assets at Bank of Tokyo Mitsubishi Ltd. ``Demand may still exist but it's not leading to any kind of improvement in profits.''
He's buying stocks with higher dividends, such as supermarket operator San-A Co. and Shimojima Co., a packaging materials wholesaler.
South Korea's Samsung Electronics, which supplies chips to Hewlett-Packard and is the world's third-largest mobile-phone maker, accounted for a third of the Kospi's slide.
Hon Hai Precision, Sony
Taiwan's TWSE Index dropped 1.4 percent. Hon Hai Precision Industry Co., which supplies computer parts to Hewlett-Packard, led declines. Hong Kong's Hang Seng Index was on track for its biggest slump in more than three weeks as Hutchison Whampoa Ltd., Asia's biggest investor in European phone companies, fell.
Benchmarks in Singapore, Australia, New Zealand, Indonesia, India and the Philippines declined, while indexes gained in Malaysia and China.
Sony, the maker of Vaio computers, fell 3.5 percent to 5,310 yen. Fujitsu Ltd., Japan's biggest business-computer maker, dropped 4.8 percent to 415 yen.
After the U.S. market closed, Hewlett-Packard Chief Executive Officer Carly Fiorina cut the company's sales-growth forecast to 2 percent to 4 percent for the year ending Oct. 31, 2003, from a 4 percent to 6 percent range.
The world's second-largest computer maker also doesn't plan to increase its fiscal first-quarter forecast for profit of 27 cents a share on sales of $18.4 billion, she said. Shares of Hewlett-Packard fell 3.4 percent in U.S. after-hours trading.
NEC, Murata Manufacturing
Nokia, the world's biggest cell-phone maker, said industrywide sales will rise 10 percent or ``slightly more'' next year. The company also said wireless-equipment sales will drop 20 percent this year and 10 percent in 2003.
NEC Corp., Japan's largest mobile-phone maker, slumped 5.9 percent to 495 yen. Murata Manufacturing Co., the world's biggest maker of ceramic capacitors used to regulate electricity in cell phone handsets, tumbled 7.9 percent to 5,450 yen.
Matsushita Electric Industrial Co., which agreed with Nokia to develop new technology for handsets last month, fell 3.4 percent to 1,232 yen.
Korea's Kospi shed 22.07 to 714.50, its biggest slide since Oct. 10. Samsung Electronics dropped 5 percent to 373,500 won.
Samsung SDI Co., which supplies mobile-phone screens to Nokia, declined 6 percent to 82,500 won. Trigem Computer Inc., which supplies personal computers to Hewlett-Packard, slipped 6.9 percent to 7,990 won.
Lost Interest
``The lower forecasts make some investors lose interest in computer-related stocks,'' said Kim Young Hwan, who holds Samsung Electronics shares among about $250 million he manages at Mirae Asset Investment Management Co.
The TWSE dropped 66.44 to 4727.49. Hon Hai, the island's largest maker of computer parts, shed 1.9 percent to NT$131.5. Asustek Computer Inc., which makes computer circuit-boards for Hewlett-Packard, fell 0.7 percent to NT$75.5.
``We're avoiding computer-related stocks,'' said Katherine Chen, who manages $23 million in stocks at International Investment Trust Co. ``We're not optimistic about computer demand this year or next.''
Hong Kong, Australia
The Hang Seng Index lost 1.4 percent to 10,081.09, heading for its biggest slide since Nov. 11. Hutchison slipped 3.2 percent to HK$53.25. China Mobile (H.K.) Ltd., the country's largest mobile-phone service provider, dropped 1.6 percent, to HK$21.40.
Australia's S&P/ASX 200 Index dropped 1.5 percent to 3027.20. News Corp., which gets three-quarters of its sales in the U.S., shed 3.9 percent to A$12.45.
Advertising spending in the U.S. and Europe will be little changed next year, and a full recovery isn't expected until 2004, said Adam Smith, an analyst for industry forecaster Zenith Optimedia Group.
``The ad market will definitely improve but we don't know when and we don't know how,'' said Albert Hung, who oversees $450 million at Tower Asset Management Australia Ltd.
