Asian stocks fell as a fourth weekly gain in oil prices increased concern that record fuel costs will stifle consumer spending. Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co. led the decline. ``Technology stocks are a leading indicator of global growth and it's pointing to a slowdown,'' said Isaho Nakasho, who helps oversee about $40 million in Asia, excluding Japan, at Fuji Investment Management Co. in Tokyo. ``The potential impact of oil's surge on the global economy is yet to be felt.''
Morgan Stanley Capital International's Asia-Pacific Index, which tracks about 900 stocks, lost 0.1 percent to 91.46 at 2:20 p.m. in Tokyo. Computer-related shares accounted for 80 percent of the regional index's drop. Japan's Nikkei 225 Stock Average and Topix index fell further after a government report showed machinery orders rose less than expected, signaling a slowdown in demand for digital products. The Nikkei lost 0.5 percent to 11,303.15 while the Topix lost 0.5 percent to 1136.25. Samsung Electronics, the world's second-largest chipmaker, may report next week that third-quarter profit rose at its slowest pace in three quarters, analysts surveyed by Bloomberg News said. Taiwan Semiconductor, the world's largest supplier of made-to-order computer chips, yesterday said September sales fell from a monthly record in August.
All other stock benchmarks fell in the region, with indexes in Singapore and New Zealand little changed. Chinese stock indexes declined in their first trading session after a five-day holiday.
Worst Performers
Indonesia's Jakarta Composite Index rose 0.3 percent to 852.282 at lunch. Agence France-Presse reported an explosion at the Indonesian Embassy in Paris during the break. Seven people were injured, AFP reported, citing fire fighters. France2, France's state television, said nine people were wounded and the front of the embassy was badly damaged. The market reopens at 2 p.m. Jakarta time. Samsung Electronics shed 0.9 percent to 484,500 won. The company may report next week that third-quarter profit rose 50 percent to $2.4 billion, analysts surveyed by Bloomberg News said. That suggests that demand for the South Korean company's semiconductors and flat screens may have peaked, they said.
Taiwan Semiconductor slid 4 percent to NT$43.20. Sales climbed 23 percent to NT$23.2 billion ($684 million) from a year ago, said Richard Chung, a company spokesman. Sales fell from the monthly record of NT$23.4 billion set in August, ending five straight record months. ``Taiwan Semiconductor might see flat or even a single-digit decline in fourth-quarter sales'' from the third quarter, said Paul Tsai, who manages the equivalent of $14 million at International Investment Trust Co. in Taipei.
Japan Machinery Orders
The MSCI Asia-Pacific Information Technology Index slid 0.6 percent for the biggest decline among the 10 industry groups that make up the regional benchmark. The industry measure was the worst performer for a second quarter in the three months ended Sept. 30 on concerns that demand for semiconductor and computers may falter. Global spending on semiconductor manufacturing equipment will fall 0.6 percent next year as chipmakers scale back their budgets ahead of slowing demand, market researcher Gartner Inc. said yesterday. The 2005 forecast is 12 percent lower than what the Stamford, Connecticut-based researcher predicted in July. In Japan, private machinery orders excluding shipping and utilities, rose 3.1 percent, seasonally adjusted, from July. The median forecast in a Bloomberg News survey of 33 economists was for 5.4 percent increase.
Demand Peaking?
Sony Corp., the world's second-biggest consumer electronics maker, lost 1 percent 3,860 yen. Last month, the company said profit from sales of home electronic products won't improve this quarter because of falling prices for flat-panel televisions and slumping demand for audio products. Sony is due to report earnings later this month. Singapore's Chartered Semiconductor Manufacturing Ltd., the world's fourth-largest supplier of made-to-order chips, slid 0.9 percent, to S$1.07. STATS ChipPAC Ltd., which provides chip- testing and packaging services, lost 2.8 percent to S$1.06. China's Shanghai Composite Index, which tracks yuan- denominated Class A shares and foreign-currency Class B shares, dropped 1.2 percent for the biggest drop in the region. The Shenzhen Composite Index, which measures the smaller of China's two markets, lost 0.5 percent. The stock markets reopened after the weeklong National holiday. China Southern Airlines Co., the nation's largest carrier, sank 2.5 percent to 4.31 yuan on concern record oil prices will boost fuel costs. China Eastern Airlines Corp., the nation's third-biggest airline, slipped 2.6 percent to 4.53 yuan.
Utilities
A gain in regional utility stocks such as Kansai Electric Power Co., Japan's second-biggest utility, helped limit the decline in the MSCI benchmark as some investors sought shares less likely to be affected by global slowdown. A measure that tracks utility companies were the two best performers among the 10 industry groups that make up the MSCI Asia-Pacific Index. Kansai Electric, Japan's second-biggest utility, gained 1 percent to 1,968 yen. Tokyo Electric Power Co., Asia's largest power producer, advanced 0.6 percent to 2,365. ///www.bloomberg.com