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Asia hit by tech sell-off
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March 30, 2000: 4:29 a.m. ET
HK, Singapore tumble 3% as techs slump in line with Nasdaq; yen advances
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LONDON (CNNfn) - A widespread sell-off in technology and telecom shares sent Asia's major stock markets tumbling Thursday, pushing Tokyo's blue-chip index down 1.3 percent while Hong Kong and Singapore nursed losses of more than 3 percent.
Those declines came in response to a drop of nearly 4 percent in the tech-laden Nasdaq composite index in New York Wednesday, its third-largest decline in point terms, amid rising concern that valuations in the sector may be overstretched. However, the Dow Jones industrial average climbed 0.76 percent while the broader S&P 500 was little changed.
Tokyo's benchmark Nikkei 225 closed down 265 points, or 1.3 percent, after posting gains in eight of the nine previous sessions. Export-sensitive stocks were the poorest performers, hit by the continuing strength of the yen.
 In Hong Kong, the Hang Seng index fell 3.5 percent as heavyweight China Telecom lost more than 9 percent. The index closed just above its session low at 17,467.15. Tech and telecom shares also declined in Singapore, leaving the Straits Times down 3.06 percent at 2,114.73.
In the currency markets the yen strengthened to ¥105.58 against the dollar from ¥105.69 at the close of trade in New York Wednesday amid speculation there may be renewed central bank intervention to stem its recent surge.
The euro held steady against the Japanese currency at ¥100.69 per euro, just above its record low, and advanced a touch against the dollar to $0.9534 from $0.9519 in New York. It has weakened this week amid expectations that the European Central Bank will refrain from raising euro-zone interest rates at its regular meeting later Thursday.
Exporters weaken Tokyo
In Tokyo, automakers suffered from the strong yen, which threatens to damage profits. Nissan Motor fell 7.6 percent and rival Honda Motor lost almost 5 percent. Among tech stocks, Hitachi closed down 1.7 percent and NEC Corp. shed 2.2 percent even after it announced plans to establish an online brokerage in partnership with France's Société Générale (PCGE).
Sony Corp. was the market's best performer, rising 5.6 percent after the consumer electronics company outlined its future strategy to investors, including plans to restructure its entertainment business, float part of its Internet assets and create a Web bank.
China Telecom continued its retreat from recent highs and the whole sector lost ground, with Hutchison Whampoa down 4.3 percent and Cable & Wireless HKT falling 2.6 percent.
Financial heavyweight HSBC Holdings lost almost 1 percent, having been ahead for most of the session.
TV-operator TVB was one of the market's few gainers, rising 1.4 percent after it outlined plans to float its Internet arm, TVB.com.
 Singapore Telecom was the weakest link on the Straits Times index, losing 4.1 percent ahead of further deregulation of the local phone market, which comes into force at the start of next month. Tech stocks also suffered, with multimedia content producer Creative Technology slumping 9 percent and printed circuit designer Datacraft off 3.3 percent.
Among smaller markets, Taiwan's TAIEX index was again the best performer, jumping 1.3 percent to end at 9,931.94 having earlier crossed the 10,000 mark. Investors were positive after President-elect Chen Shui-bian named the incumbent defense minister, Tang Fei, as his future premier.
Manila's PHS Composite closed up 6.7 points at 1,697.81 after a cautious session in the wake of the Nasdaq's decline, but the pattern elsewhere in the region was for sharp tech-inspired declines.
In Seoul, the Kospi index fell 2 percent to end at 889.95, with Samsung Electronics heading the parade of tech stocks losing ground. Sydney's All Ordinaries lost 0.9 percent to end at 3,194.80, and Kuala Lumpur's KLSE Composite ended 1.9 percent lower at 966.11.
Weak bank stocks sent the Set 50 in Bangkok down 2.5 percent to 400.43, and the JSX index in Jakarta fell 1.5 percent to 582.94. 
-- from staff and wire reports
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