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Chips, Mideast ruffle Asia
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October 17, 2000: 6:14 a.m. ET
Tokyo drops on weak semiconductors; telecoms dent HK, Singapore, Korea
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LONDON (CNNfn) - Declines in computer-chip makers' shares dragged Asian markets lower on Tuesday amid concern Intel, the world's biggest semiconductor company, may disappointing investors when it reports earnings later in the day.
In Tokyo, the Nikkei 225 average fell 172.1 points, or 1.1 percent, to close at 15,340.22, with the country's fourth-largest chipmaker Fujitsu and rival NEC leading declines. Investment bank Salomon Smith Barney on Monday lowered its forecast of Intel's quarterly earnings.
Investors were also reluctant to buy shares amid uncertainty about the potential for continuing turmoil in the Middle East to hit stock valuations.
 "It looks like the market is having difficulty finding a resting place... given this Middle East situation and concerns about U.S. corporate earnings," said Tatsuhiko Takura, general manager of investment research at Tokio Marine Asset Management.
Hong Kong's Hang Seng dipped 99.97 points, or 0.7 percent, to 14,873.43 at the close, with telecom stocks such as Pacific Century CyberWorks and China Mobile dragging the benchmark index lower.
Singapore's Straits Times index plunged 64.92 points, or 3.4 percent, to  1,818.45, led by chipmaker Chartered Semiconductor Manufacturing, down 6.5 percent and the world's largest maker of sound cards for computers Creative Technology slumped 6.7 percent.
In South Korea, the Kospi index slumped 6.8 percent, and the tech-laden Kosdaq plunged 7.3 percent. Samsung Electronics fell 13.3 percent and SK Telecom slipped 5.5 percent.
Australia's S&P/ASX 200 slipped 0.1 percent to 3,264.2 amid weakness in mining stocks.
Moody's turns positive on Malaysia
Malaysia's KLSE index rose 0.6 percent to 771.19 after Moody's Investors Service raised its ratings on the country's overseas-currency bonds and bank deposits, and Prime Minister Mahathir Mohamad said the government might cut corporate taxes in the 2001 federal budget.
In the currency market, the yen traded at ¥108.04 against the U.S. dollar, little changed from ¥108.07 in late trading in New York on Monday.
On the Tokyo exchange, chip-related shares lost ground following a 12 percent drop in U.S. semiconductor maker Intel's stock on Monday. Advantest, a maker of chip testing devices, fell 3.9 percent, personal computer maker Fujitsu dropped 3.1 percent and NEC slipped 1.3 percent.
In contrast, optical fiber makers advanced after sector leader Furukawa Electric raised its earnings forecast, sending its shares soaring 10.3 percent. Hitachi Cable gained 2.3 percent and Fujikura rose 4.7 percent.
In the retail sector, debt-strapped supermarket chain operator Daiei plunged 9.7 percent. The shares have lost 33 percent since a stock trading scandal involving its president and vice-president came to light earlier this month.
More worries for Bridgestone
Tire maker Bridgestone fell 2 percent after attorneys general from 48 U.S. states and territories alerted consumers that the company's U.S. unit Firestone had agreed to replace, free of charge, 1.4 million tires in addition to a total of 6.5 million that were already covered by recalls in recent weeks.
Internet and telecom company Pacific Century CyberWorks fell 3.5 percent, extending Monday's sharp decline, amid lingering concerns that the revision of its agreement with Australia's Telstra, announced Friday, went too far by promising to yield control of its mobile phone business to Telstra.
 Mobile-phone operator China Mobile fell 1 percent and telecom conglomerate Hutchison Whampoa fell 3.3 percent.
Other regional telecom stocks to fall included Korea Telecom, which dipped 3.1 percent, Singapore Telecom, down 2.9 percent, and Japan Telecom, which dropped 4.3 percent.
In Australia, mining stocks led declines. Rio Tinto fell 2.1 percent, Broken Hill dropped 8.3 percent and WMC declined 1.7 percent. WMC warned last week that falling nickel prices would weigh on its second half-profit. The price of nickel for delivery in three months slipped US$480 to US$7,060 a tonne on the London Metal Exchange overnight.
In Taiwan, the Weighted index rebounded from early losses to rise 71.41 points, or 1.3 percent, to 5,702.36 after the state intervened to buy stocks.
Manila's PHS index fell 23.27 points, or 1.8 percent, to a two-year low of 1,271.75 on fears rising interest rates would further hurt the economy.
Thailand's SET index rose 0.8 percent. 
--from staff and wire reports
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