TOKYO -- A warning from U.S. semiconductor maker Intel (INTC Quote - Cramer on INTC - Stock Picks) 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 Quote - Cramer on NIPNY - Stock Picks) 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 Quote - Cramer on SNE - Stock Picks) dropping 480, or 3.9%, to 12,000;
Nippon Telegraph & Telephone (NTT Quote - Cramer on NTT - Stock Picks) shedding 30,000, or 2.4%, to 1.23 million; and
Fujitsu (FJTSY Quote - Cramer on FJTSY - Stock Picks) 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.
Kaya Laterman
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