Asian stocks dropped yesterday, led by semiconductor-related shares such as Tokyo Electron Ltd and Samsung Electronics Co, after an industry measure of chipmaking equipment demand fell in January from the previous month.

　　The report is "keeping a lid on shares of semiconductor production equipment makers," said Hiroaki Muto, who oversees US$60 billion as chief investment manager at Nissay Asset Management Corp in Tokyo. "We're not seeing any sort of catalyst that gives us a reason to buy stocks right now."

　　He said his firm's holdings in computer-related shares are equal to their 15 percent representation in the Topix.

　　The Morgan Stanley Capital International Asia-Pacific Index, which tracks more than 800 companies in the region, shed 0.3 percent to 90.46 as of 3:08pm yesterday in Tokyo. The index is headed for its third weekly drop in four.

　　The Philippine Stock Exchange Composite Index was the region's best performer, climbing 1 percent. Philippine Long Distance Telephone Co advanced after saying profit may jump 60 percent this year following last year's record.

　　Thailand's SET Index dropped 1.3 percent and was the region's biggest laggard. Two cats were found to be infected with bird flu, raising concern that other animals may have the disease.

　　Benchmarks fell in Japan, South Korea and China, while those in Malaysia, Sri Lanka and Indonesia gained. Indexes in Hong Kong, Australia, Taiwan and Singapore were little changed.

　　Japan's Nikkei 225 Stock Average lost 0.3 percent to 10,720.69 at the 3pm close in Tokyo yesterday, while the broader Topix index shed 0.1 percent to 1058.76.

　　Tokyo Electron, the world's No. 2 maker of semiconductor production equipment, declined 2 percent to 6,950 yen (US$64.39). Advantest Corp, the world's biggest maker of equipment used to test computer memory chips, dropped 2.3 percent to 8,250 yen.

　　South Korea's Samsung Electronics, the world's biggest memory-chip maker, declined 1.1 percent to 549,000 won (US$470.31).

　　In Singapore, Chartered Semiconductor Manufacturing Ltd, the world's fourth-largest supplier of made-to-order chips, declined 1.7 percent to 1.73 Singapore dollars (US$1.03).

　　The book-to-bill ratio for North American chip-tool makers was 1.18 in January, indicating that US$118 in orders was made for every US$100 in sales, according to Semiconductor Equipment and Materials International. The ratio is considered a measure of the industry's health and was less than the revised 1.23 in December. A figure above 1 indicates a growing market.

　　Hynix Semiconductor Inc fell 1.1 percent to 9,200 won in South Korea. The world's third-largest computer memory chipmaker reported an unexpected fourth-quarter loss after taking a charge for writing down the value of some assets.

　　"It's disheartening to see Hynix has posted a loss for three years in a row, even if it narrowed losses," said Chung Doo Sun, who manages US$430 million at CJ Investment Trust Management Co in Seoul. "It's one of the reasons why fund managers like myself can't add the stock to our portfolio."

　　South Korea's Kospi index shed 0.5 percent to 877.49, its first losing week in three.

　　Shinsei Bank Ltd, owned by Ripplewood Holdings LLC and other investors, dropped 9.6 percent to 748 yen on concern a 58 percent gain on the first day of trading Wednesday pushed shares of the Japanese bank to a level not justified by its earnings outlook, fund managers said.

　　"The price went too high considering its potential growth in both retail and investment banking," said Makoto Sakuma, who manages US$3.8 billion at Asahi Life Asset Management Co. "I still haven't got a clear picture of how Shinsei is boosting its profit."

　　In Thailand, the SET lost 9.74 to 723.23, giving it a three day decline of 3.6 percent. Land & Houses Pcl, Thailand's largest residential developer, dropped 3.2 percent to 12.3 baht (31 US cents).

　　(Bloomberg News)