Asian stocks fell this week amid skepticism from some investors that earnings and economic growth will justify further gains in the region's shares after a seven-month rally. Softbank Corp led declines.
The Morgan Stanley Capital International Asia Pacific Index, which tracks more than 800 companies in the region, fell for the first week in three, losing 1.7 percent. The benchmark rallied 44 percent since closing at its low this year in April.
Japan's Nikkei 225 Stock Average dropped 4.4 percent to 10,167.06, its first weekly decline in three, to a three-month low.
Nikon Corp slid after saying fiscal first-half operating profit plunged because of a gain in the yen against the dollar and fewer sales of chipmaking machines.
"A lot of the good news is priced in and investors are slowly closing shop for the year locking in gains," said Alex Muromcew, who helps manage US$600 million in stocks globally as a fund manager for Loomis Sayles & Co in San Francisco. "Why take big bets now?"
Australia's S&P/ASX 200 Index shed 1.4 percent, its biggest weekly decline in seven. Singapore's Straits Times Index fell 1.8 percent this week, led by Neptune Orient Lines Ltd.
South Korea's index was the best performing among the region's major benchmarks, while Sri Lanka's Colombo All Share Index was the worst. The Sri Lankan index had its worst back-to-back weekly drop since it was introduced in 1985 on concern peace talks aimed at ending the island's 20-year civil war may be delayed.
In the US yesterday, technology stocks fell, as investors shifted out of the market's best performers this year and into laggards such as drugmakers.
The Standard & Poor's 500 Index lost 0.8 percent to 1050.35. The Dow Jones Industrial Average fell 0.7 percent to 9768.68. The NASDAQ Composite Index dropped 1.9 percent to 1930.26.
Softbank, Japan's second-largest high-speed Internet access provider, slumped 26 percent to ¥4,000 this week, its biggest weekly drop since March 10, 2000.
The company on Monday reported a record first-half loss after spending twice as much to attract subscribers to its Web service.
Nikon, the world's biggest maker of machines used to print circuitry onto silicon wafers, slid 16 percent to ¥1,435, as it reported a first-half operating profit that fell 69 percent from a year ago.
The dollar shed 1.3 percent against the yen this week, falling as low as 107.87 against the yen on Monday, just shy of a 35-month low.
A lower dollar threatens to reduce the value of exporters' overseas sales.
A decline in the dollar against its Australian counterpart also dragged the S&P/ASX 200 to its biggest weekly drop since the period ended Sept. 26.
The Australian dollar touched US$0.7224 in New York trading on Thursday, the highest since Oct. 22, 1997.
News Corp, the world's fifth-largest media company, slid 7 percent to A$12.20. It relies on the US for three-quarters of its sales. BHP Billiton, the world's largest miner by sales, dropped 4.2 percent to A$11.29. It makes 85 percent of its sales outside Australia.
The Straits Times Index had its third weekly decline in four.
Neptune Orient, Singapore's largest shipping line, tumbled 14 percent this week to S$2.11 after selling 236 million shares, representing about 17 percent of its enlarged share capital, at a discount.
Asian computer chip-related stocks including Singapore's Chartered Semiconductor Manu-facturing Ltd, Taiwan Semiconductor Manufacturing Co (
The Kospi gained 0.7 percent in the past five days, its third straight weekly advance. Banks such as Woori Finance Holdings Co gained after Finance and Economy Minister Kim Jin Pyo said the economy is showing signs of rebounding.
Woori Finance, the nation's third-largest lender, climbed 12 percent in the week to 7750 won. Kookmin Bank, South Korea's largest lender, added 1.3 percent to 46,700 won.
In Sri Lanka, the Colombo All Share index dropped 9.9 percent in the week just ended, following an 8.2 percent slump last week. Sri Lanka Telecom Ltd, the biggest company by market capitalization, lost 15 percent this week to 21 rupees.
Meantime, Thailand's CP 7-Eleven Pcl, India's I-Flex Solutions Ltd. and PT Bank Danamon of Indonesia were among six stocks worldwide that Morgan Stanley Capital International Inc said it will include in its standard indexes of global stocks.
purpose: Tesla’s CEO sought to meet senior Chinese officials to discuss the rollout of its ‘full self-driving’ software in China and approval to transfer data they had collected Tesla Inc CEO Elon Musk arrived in Beijing yesterday on an unannounced visit, where he is expected to meet senior officials to discuss the rollout of "full self-driving" (FSD) software and permission to transfer data overseas, according to a person with knowledge of the matter. Chinese state media reported that he met Premier Li Qiang (李強) in Beijing, during which Li told Musk that Tesla's development in China could be regarded as a successful example of US-China economic and trade cooperation. Musk confirmed his meeting with the premier yesterday with a post on social media platform X. "Honored to meet with Premier Li
ARTIFICIAL INTELLIGENCE: The chipmaker last month raised its capital spending by 28 percent for this year to NT$32 billion from a previous estimate of NT$25 billion Contract chipmaker Powerchip Semiconductor Manufacturing Corp (力積電子) yesterday launched a new 12-inch fab, tapping into advanced chip-on-wafer-on-substrate (CoWoS) packaging technology to support rising demand for artificial intelligence (AI) devices. Powerchip is to offer interposers, one of three parts in CoWoS packaging technology, with shipments scheduled for the second half of this year, Powerchip chairman Frank Huang (黃崇仁) told reporters on the sidelines of a fab inauguration ceremony in the Tongluo Science Park (銅鑼科學園區) in Miaoli County yesterday. “We are working with customers to supply CoWoS-related business, utilizing part of this new fab’s capacity,” Huang said, adding that Powerchip intended to bridge
Dutch brewing company Heineken NV on Friday announced an investment of NT$13.5 billion (US$414.62 million) over the next five years in Taiwan. The first multinational brewing company to operate in Taiwan, Heineken made the statement at a ceremony held at its brewery in Pingtung County. It also outlined its efforts to make the brewery “net zero” by 2030. Heineken has been in the Taiwanese market for 20 years, Heineken Taiwan managing director Jeff Wu (吳建甫) said. With strong support from local consumers, the Dutch brewery decided to transition from sales to manufacturing in the country, Wu said. Heineken assumed majority ownership and management rights
Microsoft Corp yesterday said that it would create Thailand’s first data center region to boost cloud and artificial intelligence (AI) infrastructure, promising AI training to more than 100,000 people to develop tech. Bangkok is a key economic player in Southeast Asia, but it has lagged behind Indonesia and Singapore when it comes to the tech industry. Thailand has an “incredible opportunity to build a digital-first, AI-powered future,” Microsoft chairman and chief executive officer Satya Nadella said at an event in Bangkok. Data center regions are physical locations that store computing infrastructure, allowing secure and reliable access to cloud platforms. The global embrace of AI