LONDON (CNNfn) - Asian markets sank Friday as a warning by U.S. computer-chip maker Intel of weaker-than-expected demand reverberated across the Pacific.
In Japan, the Nikkei 225 tumbled 3 percent to close at 15,818.25. In Hong Kong, the Hang Seng index shed 3.6 percent to 14,612.88.
South Korea's Kospi index nosedived 7.2 percent and Singapore's Straits Times index slumped 2.8 percent.
In the U.S. Thursday, the Nasdaq Composite index dropped 1.8 percent, or 68.56 points, to 3,828.88. The Dow Jones industrial average, on the other hand, gained 0.7 percent, or 77.60, to close at 10,765.52.
Intel said after official market trading ended that its third-quarter revenue growth could be as little as half of what some analysts expected as a result of slowing demand in Europe. The announcement was the company's first profit warning in two years.
In the currency market, the U.S. dollar strengthened against the Japanese yen late in Tokyo. The dollar bought ¥107.24, up from ¥106.57 in New York trading late Thursday.
Intel fears send Tokyo stocks tumbling
Japanese stocks tumbled after Intel's profit warning renewed anxiety over the outlook for global demand for microprocessors and personal computers. NEC, the world's second-largest chipmaker, dropped 7.7 percent and Fujitsu, its main domestic rival, tumbled 7.6 percent. Toshiba fell 3.9 percent.
 "No one knows what the market will look like next year and a profit warning from Intel does not bode well," said Haruki Takahashi, equity dealing manager at Tsubasa Securities, who pointed out that chipmakers had recently been raising their profit forecasts amid rising semiconductor demand in Japan.
Other large-cap technology stocks also crumbled as the market anticipated more losses on Nasdaq. Mobile-phone giant NTT DoCoMo, Japan's biggest issue by market capitalization, fell 8.4 percent.
Tokyo Electron, a maker of chip-manufacturing equipment, dropped 8.2 percent, and semiconductor testing device maker Advantest fell 6.6 percent.
In Hong Kong, major telecom stocks retreated after sharp falls in their counterparts in Europe Thursday. China Mobile was down 7.5 percent and telecom-to-property conglomerate Hutchison Whampoa shed 3.9 percent.
Computer maker Legend Holdings slid 11.1 percent as Intel's warning prompted investors to jettison computer-related shares.
Telecom and Internet company Pacific Century CyberWorks fell 3.3 percent, extending its 15.8 percent loss on Thursday after London-based Cable & Wireless sold 1 billion PCCW shares, or 4.9 percent of the company.
Global bank HSBC Holdings fell 2.4 percent and property concern Cheung Kong (Holdings) fell 1.9 percent.
Chipmakers reel in Taipei, Seoul
The Taiwan Weighted index ended down 4.5 percent, at 6,612.09, as semiconductor firms went into reverse. Taiwan Semiconductor Manufacturing and United Microelectronics both plummeted by 7 percent, the daily limit for shares to fall.
"The U.S. is the main export market for Taiwan electronic goods and Taiwan inevitably will take a hit if something goes wrong over there," said Grace Lee, manager of investment bank Jardine Fleming's Taiwan New Technology Fund.
 Seoul's KOSPI index plunged as index heavyweight Samsung Electronics fell sharply in the wake of the fall in U.S. technology shares.
Australia's S&P/ASX 200 index fell 1.9 percent, to 3,143.5, as investors anticipated big losses on Wall Street later in the day.
Thailand's SET index was down 3.3 percent while Jakarta's JSX index shed 2.6 percent. Manila's PHS Composite slipped 0.2 percent and Kuala Lumpur's KLSE Composite lost 1 percent. 
--from staff and wire reports
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