Technology stocks such as TSMC <2330.TW> fell in otherwise flat Asian markets on Monday on worries about the sector's outlook, while the dollar stayed near four-month lows against the euro following weak inflation data. Stocks lacked direction, with Japanese markets closed for a national holiday and investors awaiting testimony from U.S. Federal Reserve Chairman Alan Greenspan on Tuesday and Wednesday for hints on how quickly U.S. interest rates are likely to rise. "The U.S. economy appears to be passing through a weak patch in economic growth, judging by last month's readings on retail sales, industrial production and employment. Sliding stock prices, on fears of a slowdown in corporate earnings growth, are also undermining support for the USD," said National Australia Bank strategist Peter Jolly. The pace of U.S. consumer price rises moderated in June, data showed on Friday, bolstering financial market hopes the Fed will stick with a policy of gradual interest rate rises. The euro was at $1.2453 by 0240 GMT compared with a four-month-high of $1.2460 in New York on Friday. Against the yen the dollar was 108.56 yen versus 108.68, according to data. U.S. oil slid 37 cents to $40.88. Spot gold was at $406.85 an ounce in Asia, versus $406.20 in the U.S. market on Friday.
TECH STOCKS SLIDE
An MSCI index of Asia Pacific shares outside Japan <.MSCIAPJ> edged up 0.1 percent, but gains were capped by a 0.2 percent slide in its technology component <.MSCIAPJIT>. Technology heavyweights took a beating last week following chip downgrades by several investment houses, including Smith Barney and Merrill Lynch. Hong Kong stocks <.HSI> were up 0.3 percent in early trade. Shares in South Korea <.KS11>, Singapore <.STI> and Australia <.AXJO> edged up about 0.1 percent, while Taiwan shares fell 0.4 percent. Taiwan Semiconductor Manufacturing Co. (TSMC) <2330.TW>, the world's top contract chipmaker, fell 0.9 percent and rival United Microelectronics Corp. (UMC) <2303.TW> dropped 0.5 percent. Samsung Electronics Co. Ltd. <005930.KS> fell 0.2 percent after JP Morgan cut its target price for the company, citing slow earnings momentum. The falls followed losses in U.S. stocks on Friday, with the blue-chip Dow Jones industrial average <.DJI> ending down 0.23 percent and the tech-laden Nasdaq Composite Index <.IXIC> slipping 1.55 percent to its lowest close in two months.///