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Dow Jones Inflation fears scare Asia stocks
Intel's disappointment also contributes to regional selloff; Nikkei down 1.7%.
October 19, 2005: 5:53 AM EDT

LONDON (Dow Jones) - Asian markets ended solidly lower Wednesday, reacting to renewed fears of growing U.S. inflation.

A disappointing revenue forecast from tech giant Intel Corp. (INTC) also knocked shares region wide.

Tokyo's bellwether Nikkei 225 shed 1.67% to 13,129.49, its sixth straight day of losses. Tech shares such as Advantest Corp. slumped on Intel (INTC), helping to send the tech-sensitive Nikkei to its lowest close since Sept. 16 .

Toyota fell nearly 2% after saying late Tuesday it would spend 15.5 billion yen ( $134 million ) to fix defects on more than a million vehicles.

Seoul's Kospi dropped 2.79% to 1,153.13; Taipei's Weighted index fell 2.34% to 5,694.16; and Australia's All Ordinaries index declined 1.73% to 4,325.90.

Elsewhere, Hong Kong's Hang Seng dropped 1.64% to 14,357.89 and the Singapore Straits Times index lost 2.40% to 2,229.44.

The U.S. government reported on Tuesday that wholesale prices rose a larger- than-expected 1.9% in September, the biggest monthly jump in 31 years. The principal culprit was energy prices.

In Seoul, the Kospi dropped to its lowest level in five weeks. Among the early decliners were Samsung Electronics Ltd. (SSNGY), SK Telecom (SKM) and Kookmin Bank (KB).

Orders for Japanese chip-making equipment fell below sales in September for the first time in four months, an industry group said on Wednesday, clouding the outlook for a steady recovery in the market, Reuters reported.

The September book-to-bill ratio was 0.90, meaning that for every 100 yen of sales completed, new orders worth 90 yen were received, the Semiconductor Equipment Association of Japan said. That was the lowest level since April, when the ratio stood at 0.84, and indicates a budding cyclical downturn in the semiconductor industry.

Senior executives from Samsung Electronics Co. Ltd (SSNGY) and Sharp Corp. said the global liquid crystal display (LCD) TV market will balloon to 100 million units in 2010 from an estimated 20 million in 2005 as prices continue to fall, Reuters reported.

In corporate news, Woolworths Ltd Australia's largest grocer, posted a 14.5% rise in quarterly sales, boosted by food and liquor, and reaffirmed forecasts for annual profit growth of at least 10% despite a short-term hit from fuel prices.

U.S. stocks ended lower Tuesday after the biggest monthly rise in producer prices in 31 years fueled inflation and interest rates fears.

(END) Dow Jones Newswires

10-19-05 0527ET Copyright (c) 2005 Dow Jones & Company, Inc. Copyright (C) 2005 Dow Jones & Company, Inc. All Rights Reserved.  Top of page

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