Singapore Exchange Asian stocks fell, dragging the MSCI Asia Pacific Index fell for the second week in a row. Sharp action which cut profit projections and predictions of Samsung Electronics that memory-chip prices and the display-panel will come down, so the catalyst.The MSCI Asia Pacific Index fell 0.5% to 128.92 in Tokyo, extending the decline this week to 0.8%. The index had risen 2.1% in October, strengthening in the second round after Fed chairman Ben Bernanke said on Aug. 27 that the purchase of assets can be justified if growth slows. Fed policy makers meet on November 2 to 3.
Pauline Dan, chief investment officer at Samsung Investment Trust Hong Kong, which oversees assets of about U.S. $ 72.1 billion, say, a lot of positive news from quantitative easing in the U.S. has been factored. "Earnings momentum for the electronics company will no doubt be slowed. Logis for people to predict the growth slowdown in 2011."
Nikkei 225 index in Tokyo fell 1.8%, biggest since 12 October, following a government report showed the country's industrial production fell for a fourth month in September. This adds to concerns that the export recovery has lost momentum. South Korea's Kospi index fell 1.3%. Meanwhile, the Shanghai composite index, the Hang Seng index in Hong Kong and the S & P / ASX 200, down 0.5%.
Indicators of technology companies in the MSCI Asia Pacific Index slid 1%, the biggest drop among 10 industry groups. Shares of Japanese exporters fell as the yen rose to 80.54 against the dollar, instead of 81.63 at the close yesterday. The strengthening yen reduces the overseas earnings when repatriated.
Sharp Corp., Japan's largest LCD manufacturers declined 5.8% in Tokyo. The company cut its profit forecast for the year ending March 2011 by 40% to 30 billion yen (U.S. $ 367 million).
Advantest Corp., manufacturer of the world's major memory chip testers, slumped 9%, after reporting a first half profit below estimates. Nomura Holdings Inc. cut its rating on the shares to "reduce" from "neutral."
Meanwhile, Nintendo Co., the world's largest producer of video games, down 2.1% after the company posted a 15% decline in second-quarter earnings and predicted profit and the smallest in six years. "There is uncertainty about the outlook for earnings in the second half," said Juichi Wako, senior strategist at Tokyo-based Nomura.
Today is the day of peak earnings reports in Japan, with 270 of 1664 companies in the Topix are scheduled to report results. About three companies exceed earnings estimates for every two that fell. These data were collected from 322 companies in the Topix that have reported quarterly results since Oct. 7.
NGK Insulators Ltd., which makes industrial ceramic products, fell 21%, the biggest decline on MSCI Asia Pacific index, after the company cut its full-year profit and sales forecasts. Goldman Sachs Group Inc. lowered the recommendation to "neutral" from "buy."
Japan Stock Exchange fell after the Commerce Department reported action factory production fell 1.9% in September from the previous month, which fell 0.5%.
In Seoul, Samsung Electronics, down 2.5%, although the company reported third-quarter profit rose to reach 4.46 trillion won (U.S. $ 4 billion) due to the anticipation of competition. Bank of Communications Ltd. slumped 7.8% in Hong Kong after third-quarter profit below analyst estimates.
Seo Won Seok, an analyst at NH Investment & Securities Co. said the unit chips has pushed profit in the third quarter, but will not support a lot like memberui fourth quarter, on a rapid decline in chip prices. "For TV, the cost of marketing is the most important factor in the fourth quarter, so the cost is always high."
LG Electronics Inc., handset maker's third-largest, fell 2.8%. The Company recorded losses in two consecutive quarters of its primary business phone, pushed Credit Suisse Group AG cut its rating to "underperform" from "neutral."
Bank of Communications, China's fifth largest lender, slumped 7.8%. Net revenue for the third quarter that gave the loan rose 24% to 9.18 billion yuan ($ 1.4 billion) from a year earlier. China Life Insurance Co., the largest national insurance, slipped 3%, after posting third-quarter profit increase of 3.4%. The result is "slightly below expectations," said Guosen Securities Co. analyst Shao Ziqin and Tong Chengdun.
Among stocks that rose, the insurance company AIA Group Ltd. surged 17%, in Hong Kong. The company was sold American International Group Inc. in an initial public offering of U.S. $ 17.8 billion. the stock price is HK $ 19.68
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