Asia Stocks Fall After Samsung, IBM Report Profit; SNE Drops

[HenryTo]

Note: Infosys also reported income growth that was below expectations. The stock closed down about 8%, I think.
--------------------------------------------------------------------

Asian Stocks Fall After Samsung, IBM Report Profit; Sony Drops
April 15 (Bloomberg) -- Asian stocks dropped, led by computer-related companies, after Samsung Electronics Co. and International Business Machines Corp. reported first-quarter profit that missed expectations. Sony Corp. declined.

``Earnings from major technology companies such as Samsung Electronics confirm that the industry is struggling globally,'' said Hideaki Kurimoto, who helps oversee the equivalent of $2.8 billion at Meiji Dresdner Asset Management Co. in Tokyo. He's avoiding semiconductor-related shares.

The Morgan Stanley Capital International Asia-Pacific Index, which measures 945 stocks, lost 1.2 percent to 97.41 at 12:45 p.m. in Tokyo. Computer-related stocks accounted for a fifth of the drop. The index has slumped 3.2 percent this week and is set for its worst week in four months.

Japan's Nikkei 225 Stock Average slid 1.5 percent to 11,390.27, set for its lowest close since Feb. 4. South Korea's Kospi index dropped 1.1 percent. Other regional markets also fell, except for Malaysia. Thailand is closed for a holiday.

In the U.S., the Dow Jones Industrial Average fell to its lowest since Nov. 3 on concern economic growth is slowing.

Samsung Electronics, Asia's largest electronics maker by market value, slid 1.7 percent to 493,500 won. The South Korean company reported a 52 percent decline in first-quarter profit to 1.5 trillion won ($1.47 billion) on falling prices of chips and liquid crystal displays. The median estimate of 17 analysts in a Bloomberg News survey was for net income of 2.17 trillion won.

IBM said after U.S. markets closed that first-quarter profit from continuing operations rose to 85 cents a share, missing the 90-cent average of 17 estimates in a Thomson Financial survey. Shares of the Armonk, New York-based company dropped as much as 5.6 percent in extended trading.

`Serious'

Samsung Electronics and IBM's earnings add to signs that demand for computer-related products is slowing. Sun Microsystems Inc. reported a drop in third-quarter sales. Apple Computer Inc. said April 13 that second-quarter results and third-quarter estimates may trail analysts' highest estimates.

``The slowdown of the global economy might be even more serious than expected as we can see from earnings of U.S. technology companies,'' said Charles Chen, who manages the equivalent of $150 million at JF Asset Management co. in Taipei.

Sony, which makes Vaio computers, lost 2.4 percent to 4,050 yen. Toshiba Corp., Japan's second-biggest chipmaker, declined 2.7 percent to 437 yen. Sony and Toshiba are jointly developing technology for advanced chips with IBM.

Chartered Semiconductor Manufacturing Ltd., Singapore's biggest chipmaker, lost 1 percent to 98.5 Singapore cents.

Miners

BHP Billiton led declines by commodities stocks after metals prices dropped on concern a slowdown in the global economy will curb demand for materials. BHP helped push Australia's S&P/ASX 200 Index down for a third day, wiping out this year's gain.

BHP Billiton, the world's biggest mining company, slid 3.2 percent to A$16.77. Rio Tinto Group, the third biggest, lost 2.1 percent to A$43.33.

Jiangxi Copper Co., China's biggest producer of the metal, slipped 2.1 percent to 5.25 yuan. Anhui Tongdu Copper Stock Co., the nation's second-largest listed copper maker by output, slid 2 percent to 5.36 yuan.

Copper prices dropped 2.1 percent to a two-month low in New York on speculation that a surplus of the metal is developing in China, the world's biggest user. Zinc prices in London fell as much as 5.4 percent.

``I've been concerned for the past six weeks that we're seeing a fall-off in demand for commodities,'' said Angus Gluskie, who helps oversee the equivalent of $468 million at White Funds Management in Sydney. ``We've gone underweight BHP and Rio.''

Steelmakers

Steelmakers such as Maanshan Iron & Steel Co. dropped on concern steel prices in China, the world's biggest user of the alloy, may decline.

Prices may slide as much as 15 percent by the end of June as construction demand falls and imports increase, swelling available supplies, Lance He, a Shanghai-based analyst at UBS AG, said in an April 12 report.

Maanshan Iron & Steel, Asia's largest maker of train wheels, dropped 2.7 percent to HK$2.68 in Hong Kong. Angang New Steel Co., the Hong Kong publicly traded unit of China's second-largest steelmaker, slid 1.2 percent to HK$4.25.

China Steel Corp., Taiwan's biggest steelmaker, plunged 5.4 percent to NT$33. Posco, South Korea's largest steelmaker, dropped 1.1 percent to 188,000 won in South Korea.