Intel results hit Asian tech stocks

Asian stocks fell today with tech stocks bearing the brunt of the sell-off.

In Japan, the Nikkei 225 fell 2.2 percent to 11,356.65, its biggest one-day loss since May 17. The broader Topix index lost 1.3 per cent to 1,151.49. Tokyo Electron, the world's second-largest maker of chip- production equipment, fell 4.5 percent to 5,370 yen. Advantest Corp., the world's biggest maker of equipment used to test computer memory chips, shed 4.2 percent to 6,440 yen.

In South Korea, the Korea Composite Index fell 1.9 percent to 736.57. Samsung Electronics, the world's biggest memory chip maker, fell 3.6 percent to Won418,000, flat screen manufacturer Samsung SDI fell 4.4 percent to Won107,500 and LG Electronics plunged 5 percent to Won51,200.

Taiwan extended its recent decline with the weighted index falling 1.1 percent to 5,623.65 while in Singapore, the Straits Times Index slipped 0.4 percent to 1,870.90.

Indonesia's Jakarta Composite Index fell 2.1 percent to 740.877 after explosions rocked Bandung city in the West Java province. There were no injuries. The fall was led by PT Telekomunikasi Indonesia, the biggest company by market value.

The falls in Asia came after Intel disappointed analysts on Tuesday.

The chip giant had reported that second-quarter profits nearly doubled from the year-ago period but sales came in a bit lower than Wall Street forecasts, pushing the stock lower in after-hours trading. Net income was US$1.76 billion, or 27 US cents a share, up from US$896 million, or 14 US cents a share, a year earlier. The consensus earnings estimate on Wall Street was 27 US cents a share. Gross margin was 59.4 percent, below the guidance of 60 to 61 percent that Intel indicated in June. Inventories rose 15 percent to end the quarter at US$3.2 billion.

Networking and security solutions provider Juniper Networks on Tuesday said second-quarter loss was US$12.6 million, or 2 US cents a share, below earnings of US$13.6 million, or 3 US cents a share, last year. The loss was largely the result of acquisition-related charges. Net revenues for the second quarter were US$306.9 million, up 86 percent from US$165.1 million a year ago.

Not all recent technology news was bad though.

Philips Electronics beat analysts' expectations on Tuesday with net income in the second quarter surging to E616 million, or US$758 million, compared with just E42 million a year earlier. Sales were up 11 percent to E7.28 billion.