LONDON (CNNfn) - Widespread uncertainty about prospects for semiconductor makers took hold of Asian markets Friday, sparking weakness for technology hardware stocks across the region after the latest tumble on the tech-rich Nasdaq market.
In Tokyo, the Nikkei 225 average ended down 42.73 points, or 0.3 percent, at 14,544.30, undermined by weakness in bank and technology stocks. Over the past week, the Nikkei fell nearly 3 percent.
In Hong Kong, the Hang Seng index closed down 117.50 points, or 0.7 percent, at 15,180.85 with China Mobile, the No. 1 cellular phone operator in mainland China, dropping 1.9 percent. The Hang Seng fell 1.4 percent from a week earlier.
Singapore's Straits Times index slipped 28.80 points, or 1.5 percent, to close at 1,953.54, bringing its loss for the week to 1.6 percent. Defense contractor ST Engineering fell 12 percent after it failed to win a multibillion-dollar contract to provide light armored vehicles for the U.S. Army.
The S&P/ASX 200 index in Sydney rose 0.8 percent, with telecom company Telstra adding 2.1 percent after executives noted strong profit margins and steady revenue growth in the first four months of the 2000-2001 financial year.
Elsewhere in the region, the KOSPI index in Seoul fell 0.7 percent and Taipei's Taiwan Weighted index dropped 1.9 percent as computer maker Acer shed 3.3 percent.
U.S. markets retreated on Thursday, with the Nasdaq composite tumbling 4.4 percent and the Dow Jones industrial average off 51.57 points to close at 10,656.03. Chipmakers were among the biggest losers after a downbeat assessment of future sales by U.S. equipment company Applied Materials Inc. (AMD: Research, Estimates).
On the currency market, the U.S. dollar traded at ¥108.76, little changed from ¥108.74 at the end of the previous business day in Tokyo.
Tokyo chips lead losers
Political instability continued to deter investors in Tokyo. An opponent from within Japanese Prime Minister Yoshiro Mori's own party said Friday he would back a motion of no-confidence in the premier that the opposition plans to submit to parliament, Jiji news agency reported.
"Prolonged confusion in the U.S. presidential election and the growing possibility of a political crisis here mean investors are generally holding back," said Yutaka Miura, deputy manager of Shinko Securities' equity information section.
Chip-related stocks slipped in Tokyo. Semiconductor testing equipment maker Advantest dropped 3.7 percent while NEC, Japan's largest chipmaker, lost 3.3 percent. 
Furukawa Electric, the country's leading maker of fiber-optic cable, fell 5.3 percent. The drop mirrored declines among the company's North American counterparts, including U.S.-Canadian JDS Uniphase Corp. (JDSU: Research, Estimates), in which Furukawa has a 14 percent stake, amid concerns that global carriers will cut their capital investment in the next year.
Mobile phone and Internet company Hikari Tsushin sank 10.2 percent, while fellow Internet investor Softbank rose 2.5 percent despite its high exposure to tech stocks listed on Nasdaq.
Chip and computer maker Fujitsu fell 0.6 percent, extending its losing streak to six days, during which it has fallen more than 16 percent. Rivals Sony and Toshiba each dropped 1.3 percent.
In the financial sector, Tokai Bank, the world's biggest bank by assets, fell 3.4 percent, Sanwa Bank slipped 2.8 percent and Bank of Tokyo-Mitsubishi fell 0.8 percent.
Bucking the general downtrend, telecom giant Nippon Telegraph and Telephone rose 0.8 percent, a partial recovery from Thursday's 4 percent loss.
In the automotive sector, Mazda jumped 6.1 percent despite reporting a ¥4.7 billion ($43.2 million) operating loss for the past half year, hit hard by the falling euro and weak sales in key European markets. Mazda also announced it would cut 1,800 jobs as it seeks to cope with the vagaries of currency market fluctuations.
Telecoms weak in Hong Kong
In Hong Kong, ports-to-telecom conglomerate Hutchison Whampoa dropped 1.5 percent, while Internet and telecom group Pacific Century CyberWorks declined 1.7 percent.
Traders said a move by Morgan Stanley Capital International to lower its indexes' weightings for telecom and bank stocks in Europe might be sending signals that the sectors are losing favor. MSCI's global index is widely used  by fund managers as benchmarks for investment moves.
Computer maker Legend Holdings dropped 3.1 percent, but property investor Swire Pacific rose 1 percent.
In Sydney, shares of media company News Corp. rose 2.6 percent.
And in Singapore, chipmaker Chartered Semiconductor shed 4.1 percent, Singapore Telecommunications dropped 2.4 percent and Venture Manufacturing, a electronics contract manufacturer, shed 1.3 percent.
Among other Asian markets, the KLSE composite in Malaysia fell 0.7 percent, Bangkok's SET index rose 1.6 percent, the PHS composite in Manila added 0.1 percent, Jakarta's JSX index gained 1 percent and the BSE Sensex in Mumbai rose 0.1 percent.
--from staff and wire reports 
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