US probe hits Korean chip giants

THE threat of a US price-fixing probe into semiconductors sent shares of

As the US government expanded its anti-trust investigation into the possible fixing of microchip prices to target overseas manufacturers, Samsung Electronics, the world's biggest chipmaker, crashed almost 4%, while rival Hynix Semiconductor was driven down twice that amount. Local buying of domestic-centred stocks limited the damage to the Kospi to a fall of 0.36 points at 776.01.

Japan's Nikkei 225 Average, which on Wednesday suffered its biggest fall this year, losing 3.36%, quietened down today as bargain-hunters moved in. After jittery trading sent it down to 10,325 in early deals the Nikkei closed at 10,612.98 for a net gain of 136.8.

A knock-on effect of the US threat on Taiwan's chip groups saw the Weighted Average dip 8.83 points to 5390.67. Both Samsung and Hynix have received subpoenas demanding information from a Californian grand jury, along with US giant Micron Technology and Germany's Infineon. The queries are believed to centre on suspicions that the huge slide in the prices of D-ram chips was the result of concerted predatory pricing aimed at cutting competitors out of the market.

Technology stocks around the region also continued to be depressed by warnings on sales and earnings from Apple Computer and chip giant Advance Micro Devices. In Tokyo, Sony shares led the sector's slide with a fall of more than 3%, as investors remained unimpressed with an unexpectedly strong export performance by the country's manufacturers in May.

Led by motor cars and electronic consumer goods, Japan's exports soared 8.8% in May, fuelling a 700% increase in the trade surplus over the same month last year. But the fall to a four-month low by the Dow Jones Industrial Average was also holding back investors in Japan and elsewhere in the region as they worried that the recent weakness in US markets signalled a fall into a double-dip recession.

Wall Street's weakness, and lack of any signs of real earnings upswing kept Hong Kong investors at bay, although early losses were later recouped and the Hang Seng index edged up 4.54 points to 10,677.65, boosted by bargain hunting in property stocks.

Biggest faller of the day was mainland minibus maker Brilliance China, which is also quoted in New York. The stock slumped 9% following the stepping down of chairman Yan Rong, one of China's richest and best connected businessmen. He remains a director of the company, which has built close links with European motor makers, including BMW.

Australian stocks wilted slightly on Wall Street woes, led by News Corporation, which lost 1%, but resilience in other blue-chips limited the damage and the All Ordinaries index edged up 0.1 points to 3230.8. Singapore stocks staged a mild recovery, taking the Straits times index up 3.96 points to 1568.51, while Malaysia's Kuala Lumpur Composite index strengthened 2.39 points to 746.29. Thailand's SET index dipped 0.9 points to 404.37, and Indonesia's Jakarta Composite lost 2.68 points to 531.84.

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.