Asian technology stocks rose, led by Kyocera Corp. and Taiwan Semiconductor Manufacturing Co., after the Philadelphia Semiconductor Index climbed to its highest in almost seven weeks. Morgan Stanley Capital International Inc.'s Asia-Pacific Information Technology Index, which tracks 122 computer-related stocks in the region, added 0.3 percent at 1:31 p.m. in Tokyo. The Philadelphia Semiconductor Index jumped 2.9 percent after Sanford C. Bernstein & Co. recommended buying shares of some U.S. chipmakers. ``The rise in chip-related stocks in the U.S. is giving investors a reason to put their money in technology stocks here as well,'' said Tomokatsu Mori, who helps manage $7.4 billion at Fukoku Capital Management Inc. in Tokyo. ``The gains there have relieved the market about the industry's outlook.''
Elsewhere in Asia, Indonesia's key index advanced after exit polls indicated that Susilo Bambang Yudhoyono, a former security minister who pledged to fight terrorism and reduce corruption, will win the nation's presidential election. S-Oil Corp. declined from yesterday's record high after Goldman, Sachs & Co. cut its investment rating on South Korea's third-largest oil refiner to ``in-line'' from ``outperform.'' The MSCI Asia-Pacific Index, which tracks the performance of more than 900 companies in the region, was little changed as were indexes in Japan, South Korea, Australia, India and Singapore. Benchmarks in China and Thailand fell while all others advanced.
`Undervalued'
Kyocera, the world's largest maker of ceramic packaging used to protect microprocessors, climbed 1.3 percent to 8,130 yen. Taiwan Semiconductor, the world's largest maker of made-to-order chips, advanced 1.1 percent to NT$45.70. Singapore's Chartered Semiconductor Manufacturing Ltd., the world's third largest, gained 1.9 percent to S$1.05. Chip stocks rose in the U.S. after Adam Parker, a Sanford C. Bernstein analyst, told investors to buy shares of those companies that have reduced their sales or earnings forecasts. Rising inventories and unused production capacity will reduce growth less than investors anticipate, Parker wrote in a note. ``Although technology companies have excess inventory and face falling product prices, many of them are still profitable and are undervalued,'' said Phil Chen, who helps manage $1.9 billion at Grand Cathay Securities Investment Trust Co. in Taipei. ``The Philadelphia Semiconductor Index rally should help restore confidence in technology stocks.''
Presidential Election
Indonesia's Jakarta Composite Index rose as much as 1.8 percent. It recently added 0.5 percent to 818.904. The benchmark has climbed 8.5 percent this month, Asia's best performer. PT Telekomunikasi Indonesia, the exchange's biggest company by value, rose 2.5 percent to 8,350 rupiah. The Institute for Social & Economic Research, Education & Information exit poll showed Yudhoyono, 55, leading President Megawati Soekarnoputri, 57, in the final round of the election by 61.2 percent to 38.8 percent. ``The election means an end to a period of uncertainty,'' said Bayu Nugroho, who helps manage the equivalent of $336 million at PT Niaga Aset Manajemen in Jakarta. ``Investors also expect Yudhoyono will do a better job than Megawati, especially in economic and security areas.''
S-Oil, UFJ
S-Oil shed 0.8 percent to 59,300 won, paring its 17 percent jump in the past four days. Goldman said the stock's recent gains already reflected its earnings outlook. Sonia Song, an analyst at Credit Suisse First Boston's brokerage unit in Seoul, advised investors to ``hurry up and take profits,'' in a note to clients dated today. SK Corp., South Korea's biggest oil refiner, rose 1.5 percent to 52,900 won, extending a four-day, 12 percent gain. It raised its full-year operating profit forecast by 23 percent to 1.3 trillion won ($1.1 billion), citing higher refining gains.
UFJ Holdings Inc., Japan's fourth-biggest bank, jumped 3.6 percent to 460,000 yen. The lender will ask the Industrial Revitalization Corp. of Japan to help rehabilitate Daikyo Inc., a condominium builder, the Nihon Keizai newspaper reported. UFJ and other lenders would provide 180 billion yen ($1.6 billion) in financial assistance to Daikyo in the form of debt- for-equity swaps and other methods, the paper said. The agency will decide whether to take on the case by the end of this month at the earliest, the report said. Daikyo said it has no plan to seek aid from the Industrial Revitalization Corp. Daikyo plunged 14 percent to 176 yen. ///www.bloomberg.com