LONDON (CNNfn) - Asian markets succumbed Monday to the global slide in technology shares, as the sector's stocks fell in step with Friday's sharp losses for their U.S. counterparts.
Tokyo's benchmark Nikkei 225 index closed down 0.9 percent at 16,061.16, Hong Kong's Hang Seng dropped nearly 4.2 percent to 15,560.16, and South Korea's Kospi index plummeted 8.1 percent to close at 577.56.
Singapore's Straits Times index fell 1.8 percent to 2,016.26.
In the currency market, the U.S. dollar weakened, buying ¥106.87 in late trading in Tokyo, down from ¥107.35 in New York on Friday.
In the latest session in the U.S., the technology-heavy Nasdaq composite index slid 78.62 points, or 2 percent, to 3,835.24, while the Dow Jones Industrial Average fell 160.47 points, or 1.4 percent, to 10,927.00.
Tech shares, the former darlings of global markets, have taken a beating recently amid investor concerns that corporate earnings won't meet the most optimistic forecast and justify their steep stock prices.
Tech stocks keep sentiment bearish
In Tokyo Monday, NEC, the world's second-largest chipmaker, fell 3.4 percent while Toshiba fell 3.1 percent, following losses last week in both companies' American depositary receipts in New York.
 Internet investor Softbank Corp., which is heavily invested in several Nasdaq-listed Internet firms, plunged 9.7 percent. Market players said investors were digesting media reports that the company would sell part of its 9.9 percent stake in Sky Perfect Communications, a digital satellite TV broadcaster, which is set to list on the Tokyo Stock Exchange's Mothers market in late October.
A trader said the report raised concern that Softbank's cash position was poor, but Nihon Keizai Shimbun newspaper said the move reflected Softbank's shift of interest to Internet-based communications from satellite broadcasting. Softbank declined to comment.
Electronics giant Sony bucked the downward trend, closing up 2.8 percent after a report in the Nihon Keizai Shimbun said it would provide content, including movies and games, over a fiber-optic network installed by Nippon Telegraph and Telephone.
Tokio Marine & Fire Insurance ended down 1.5 percent after the announcement that the largest non-life insurer in Japan would form a new insurance group with Asahi Mutual Life and Nichido Fire & Marine.
South Korea follows Nasdaq down
South Korean stocks plunged as concerns about tech shares hit market heavyweight Samsung Electronics, which shed 8.7 percent. The market also suffered from worries about the progress of corporate restructuring sunk in after Ford Motor's decision last week not to buy troubled Daewoo Motor.
In Hong Kong, shares of conglomerate Hutchison Whampoa fell 2.8 percent after the company said Monday it increased the size of an offering of convertible bonds to $3 billion from $2.5 billion. The bonds are exchangeable into shares of British mobile-phone operator Vodafone Group.
 HSBC Holdings plunged 4.5 percent, as traders said the London-based international bank had outperformed the market. The weakness of the British pound against the dollar was also raising concerns. HSBC, which has large operations in the U.K., reports its earnings in dollars.
"U.S. markets are starting to worry about the earnings of multinational companies in the face of the strong dollar," said Alex Wong, research manager of OSK Asia Securities.
Traders also said funds were scarce as investors waited to subscribe to other new issues. The Hong Kong government plans later this month to sell about HK$8.7 billion ($1.1 billion) of shares in an initial public offering for its commuter railway operator, Mass Transit Railway Corp.
The Taiwan Weighted index fell 2 percent to 6,910.14, a 16-month low, as concerns about Wall Street's fall, high oil prices and slower growth in money supply hit semiconductor and banking shares.
Australia's S&P/ASX 200 index ended down 1.6 percent at 3,276.4, dragged down by a sharp fall in News Corp. The media company's ordinary shares shed 4 percent while its preferred stock ended down 4.5 percent. Together, they represent about 14.5 percent of Sydney's benchmark index.
Partly paid shares in Telstra, Australia's largest telecom group, fell 4.5 percent.
Traders said the distraction of the Sydney Olympic Games meant that transaction volumes were unusually low.
In Jakarta, the JSX index plunged 7 percent amid political uncertainty and a weak currency.
Bangkok's SET index ended 2.1 percent lower and Kuala Lumpur's KLSE Composite closed down 1.5 percent.
Manila's PHS Composite index ended down 0.7 percent. 
-- from staff and wire reports
|
