Asian Chip Shares Advance This Week as Commodity Stocks Decline

April 17 (Bloomberg) -- Asian technology stocks rose this week on speculation demand for computers will climb, while commodity shares fell after China moved to cool economic growth and Alcoa Inc. reported lower-than-expected sales.

Toshiba Corp., Japan’s biggest maker of memory chips, advanced 3.7 percent this week in Tokyo after California-based Intel Corp. forecast sales that exceeded analysts’ estimates. Ibiden Co., an Intel supplier, jumped 10 percent in Tokyo. Alumina Ltd., Alcoa’s venture partner, slumped 9.1 percent in Sydney. China Overseas Land & Investment Ltd., a Hong Kong- traded builder, tumbled 10 percent after the nation’s cabinet increased down-payment ratios for some home purchases.

“Companies are demonstrating that economic conditions are improving, while the data is still pointing to an ongoing theme of recovery,” said Prasad Patkar, who helps oversee about $1.9 billion at Platypus Asset Management in Sydney. “You now need to watch the underlying performance of the global economy once all the stimulus has washed through.”

The MSCI Asia Pacific Index was little changed at 128.27 this week, as concern China would tighten money supply and an unexpected climb in U.S. jobless claims countered signs of economic recovery.

Japan’s Nikkei 225 Stock Average lost 0.9 percent this week. China’s Shanghai Composite Index retreated 0.5 percent and Hong Kong’s Hang Seng Index sank 1.6 percent. Thailand’s SET Index tumbled 6.8 percent in its holiday-shortened week after clashes between soldiers and protesters.

Chip Shares Advance

Technology-related stocks climbed the second-most this week among the MSCI Asia Pacific Index’s 10 industry groups. Toshiba rose 3.7 percent to 511 yen and Ibiden surged 10 percent to 3,530 yen after Intel, the world’s biggest chipmaker, forecast second-quarter sales that exceeded analysts’ predictions, citing growing worldwide demand for computers.

Global personal-computer shipments topped estimates in the first quarter, the Connecticut-based research firm Gartner Inc. said on April 14, citing a recovery in Europe.

Taiwan Semiconductor Manufacturing Co., the world’s largest contract maker of chips, climbed 0.5 percent to NT$63 in Taipei, its fourth weekly advance. The company’s Chairman Morris Chang said he expects a 22 percent increase in worldwide semiconductor sales this year.

Powerchip Semiconductor Corp., Taiwan’s biggest maker of memory chips, soared 11 percent to NT$6.34 in Taipei to its highest close since August 2008. The company posted its highest profit in three years as rising computer demand boosted sales. The company’s board also approved a plan to sell new shares and cancel existing shares.

Year-to-Date Performance

The MSCI Asia Pacific Index has climbed about 6 percent this year amid growing confidence in the global recovery. Companies in the gauge trade at 16 times estimated earnings on average, the cheapest level since January 2009.

China reporting an 11.9 percent increase in first-quarter economic growth and better-than-estimated U.S. earnings drove the index on April 15 to its highest level since Aug. 6, 2008.

Commodity-related companies fell the second-most among the MSCI Asia Pacific Index’s 10 groups. Alumina slumped 9.1 percent to A$1.69 in Sydney. BHP Billiton Ltd., the world’s biggest mining company, declined 0.8 percent to A$43.54.

Aluminum Corp. of China Ltd., the nation’s biggest producer of the metal, declined 5.4 percent to HK$8.42 in Hong Kong. The company said it won China Securities Regulatory Commission’s approval to sell as many as 1 billion yuan-denominated shares.

China Shares Slump

China Overseas Land & Investment tumbled 10 percent this week to HK$15.50 in Hong Kong after China’s cabinet increased down-payment ratios for some home purchases, saying “more forceful” steps are needed to cool speculation. China’s economic growth in the first quarter was the fastest pace in almost three years.

China Resources Land Ltd., a state-controlled property developer, slumped 11 percent to HK$15.26. Guangzhou R&F Properties Co., the biggest real-estate company in the southern Chinese city, plunged 13 percent to HK$11.94.

“These are the harshest measures targeting the property market we have seen recently,” said Wu Kan, a Shanghai-based fund manager at Dazhong Insurance Co., which oversees $285 million. “It adds to concerns that economic growth will be hurt given property’s big contribution to the economy.”

Thai Airways International Pcl, Thailand’s largest carrier, tumbled 18 percent to 22.9 baht in Bangkok. Airports of Thailand Pcl, the country’s biggest airfield operator, sank 8.8 percent to 33.75 baht. The market was closed from April 13 to 15 for a public holiday.

Thailand’s tourism industry may be “decimated” by political unrest that spilled over into violence last weekend, Finance Minister Korn Chatikavanij said on April 15 in an interview. At least 23 people were killed when protesters seeking to oust Prime Minister Abhisit Vejjajiva fought with security forces on April 10.