Apple blow takes bite out of Asia

ASIAN markets were soured today as downbeat earnings news from Apple Computer and other leading US makers of electronic parts further undermined confidence in a rebound in demand for the region's major players in the sector.

Other markets where technology stocks carry plenty of clout were also hit hard. South Korea's Kospi tumbled almost 3.5% while Taiwan's Weighted Average slipped 2.5% in morning trade as the shares of companies holding big contracts with Apple tumbled.

Investors were dismayed by Apple's warning that third-quarter earnings would not meet forecasts, casting a pall over the outlook for the sector. This was darkened further when Advanced Micro Devices, America's second-biggest chipmaker, said it was heading for a loss in its second quarter.

Further agony was piled on by a revelation from chip giant Intel that it was facing extraordinary losses on an earlier failed internet venture. Apple shares listed in Tokyo crashed 12% while stocks in other leading electronics groups were battered by foreign selling. NEC, Japan's largest chipmaker and which has big contracts with Apple, fell 2.3%, while manufacturers of chip-making equipment were even harder hit.

Football boots maker Asics, which supplies many of Japan's players, tumbled 7% after the co-host nation was knocked out of the World Cup.

In Taiwan, shares of Quanta Computer, which makes the Apple iMac under contract-plunged almost 7% and the Weighted Average lost 133.64 points to 5402.78 as other computer-related stocks beat a retreat.

South Korea's Kospi index plunged 30.49 points to 778.91 although shares in SK Telekom, which sponsors the national side, rose after the nation shocked the footballing world by knocking Italy out of the World Cup.

Computer stocks also drove Singapore's Straits Times index back on a steep downward path, off 17.79 points to 1582.81. Recent volatility on Wall Street continued to shred the nerves of Hong Kong investors who are also having to digest a string of poor economic data, including a rise in unemployment to record levels.

Conglomerate Hutchison Whampoa, which is involved in almost every sector in Hong Kong, was also suffering from its connections to global mobile phone networks, and lost almost 2% as the Hang Seng index receded 114.12 points to 10,737.92. Diminishing prospects of an early rise in US interest rates helped bank stocks, with HSBC Holdings up 25 cents to HK$90.25.

Australian investors continued to flee resource stocks on concern about long- term global growth and the All Ordinaries index lost 18.3 points to 3243.4. BHP Billiton took the brunt of the selling, down more than 2% while News Corp was again friendless.

The region's smaller markets all softened, with Thailand's SET index down 3.65 points to 414.87, Malaysia's Kuala Lumpur Composite off 0.61 to 746.81 and the Jakarta Composite index in Indonesia 4.90 points easier at 534.91.

Prices and indices in this section are supplied from various sources and calculated at different times and may not always match those listed in the tables.