Executive Business Briefing

Here is a look at Friday's top business stories:

Stocks decline in Asia

TOKYO, Aug. 2 (UPI) -- Stock prices on the Tokyo Stock Exchange ended lower for a third consecutive session Friday amid renewed concerns about the economy in the United States.

Stocks also lost ground in Hong Kong; Seoul, South Korea; and Sydney, Australia; but posted small gains in Taipei, Taiwan.

Japan's blue-chip Nikkei Stock Average of 225 selective issues, which lost 84.43 points Thursday, lost another 83.85, or 0.9 percent, to 9,709.66. The broader Topix Index slipped 2.78 points, or 0.3 percent, to 955.81.

Declines outpaced advances 889 to 458, while another 123 issues settled unchanged. Volume rose to an estimated 731.98 million shares from 658.65 million shares changing hands on Thursday.

Analysts said stocks lost ground as weak U.S. economic data pressured exporters.

A weaker-than-expected manufacturing report Thursday in the United States followed data earlier in the week showing a slowdown in gross domestic product.

In recent weeks, executives of major exporters in the auto and tech industries have voiced concerns that a deterioration of the U.S. economy could lead to a stronger Japanese yen against the U.S. dollar and hamper their business in the United States.

Among some of the active issues, Sony Corp. lost 3.3 percent. Hopes for a profit recovery at the consumer electronics giant are waning due to doubts about the U.S. economic outlook.

TDK lost 2.6 percent on concerns over its full-year outlook.

In an active auto sector, Honda Motor lost 3.1 percent and Mitsubishi Motors slipped 0.3 percent.

Ricoh jumped 5.0 percent after the company upgraded its earnings estimates for the fiscal year through March.

Shares in Japanese companies that make automated-teller machines, vending machines, printing machinery and money-handling equipment got a lift from news of government plans to redesign the nation's banknotes for the first time in 20 years.

Investors, mainly domestic individuals and dealers, snapped up related issues, hoping those firms will get an earnings boost.

Oki Electric Industry jumped 12.7 percent. Oki holds about a 40 percent share of the bank-use ATM market.

Among other ATM manufacturers, Omron rose 2.2 percent while Komori Corp., a major supplier of domestic money-printing machines, gained 3.3 percent.

Elsewhere in Asia, prices on the Hong Kong Stock Exchange closed lower, weighed down by earnings jitters and weak economic data from the United States which stifled hopes of a speedy recovery in the territory's second-largest trading partner.

The blue-chip Hang Seng Index, which lost 87.34 points Thursday, lost 188.30 points, or 1.85 percent, to 9,991.72. In trading, global bank HSBC Holdings, the market's biggest stock, fell 2.6 percent. The lender will be reporting its first half results on Monday.

Hang Seng Bank lost 2.1 percent, Bank of East Asia fell 2.4 percent, China Mobile fell 1.4 percent, China Unicom lost 4.6 percent, micro-motor maker Johnson Electric fell 1.2 percent and supply chain manager Li & Fung lost 1.1 percent.

Prices also ended lower on the South Korean Stock Exchange, pressured by weakness in export issues and concerns over the U.S. economy. The Korea Composite Stock Price Index, which lost 10.19 points Thursday, fell 7.12 points, or 1.0 percent, to 700.68.

Global microchip giant Samsung Electronics fell 1.5 percent. The company said it will buy back 1.7 percent of its outstanding shares for about $850 million. The purchases will begin next Tuesday and end November 25.

Hyundai Motor, the country's largest automaker fell 4.1 percent and Hanaro Telecom lost 1.3 percent.

Stocks ended little changed on the Taiwan Stock Exchange, supported by strength in financial issues. The Weighted Index, which fell 23.79 points Thursday, added 4.30 points, or 0.1 percent to 4,920.89.

Cosmos Bank jumped 2.7 percent, Hsinchu International Bank gained 1.8 percent. But, the world's foundry giant Taiwan Semiconductor Manufacturing slipped 0.2 percent and United Microelectronics lost 1.6 percent.

Prices on the Australian Stock Exchange ended lower, but closed off their lowest levels, amid mounting evidence that the U.S. economic recovery will take longer to unfold than previously anticipated. The blue-chip All Ordinaries Index, which lost 8.50 points Thursday, lost 21.30 points, or 0.7 percent, to 3,002.80.

In trading, the world's largest diversified miner BHP Billiton fell 3.8 percent, Rio Tinto fell 4.3 percent and WMC lost 3.8 percent as expectations faded for a quick pick-up in global demand for metals and oil.

Qantas Airways lost 1.5 percent after the airline's ground staff began a 12-hour strike to demand a pay rise. The country's flagship carrier issued a warning advising travelers that many flights will be rescheduled or cancelled, in its domestic route due to the strike.

News Corp., which reaps most of its earnings in the United States, added 0.9 percent.

SIA: Chip sales rise 5.8 percent

SAN JOSE, Calif., Aug. 2 (UPI) -- The Semiconductor Industry Association said chip sales grew 5.8 percent in the June quarter to $11.35 billion from $10.73 in the March quarter.

George Scalise, president of SIA, said, "The semiconductor industry is continuing the recovery that started late last year and we are encouraged by the progress we have made pulling out of the 2001 downturn.

"While computer and computer-related sector demand is lagging, wireless and consumer sectors continue to strengthen. These two leading sectors are stimulating strong sales in flash, digital signal processors, application specific products, discretes and analog, all of which increased by double digits rates in the June quarter," Scalise said.

SIA said this month, strong growth in the digital consumer sector led the sales increase in Japan, while the Asia/Pacific markets continue to benefit from outsourcing for board level and box manufacturing, which is especially strong in China.

Sales in the Americas were impacted by the slowness of the recovery in the PC markets, while the shake out and restructuring of the telecom markets, in addition to a slow PC market, has inevitability had a short term effect on revenues in Europe.

In June, the SIA released its mid-year market forecast providing an overview of an industry-wide recovery that is currently under way.

Sales in 2002 are still expected to result in approximately 3 percent growth from 2001, and SIA said it continues to expect the growth rate to accelerate to 23.2 percent in 2003 and 20.9 percent in 2004 with wireless and digital consumer products leading the growth of sales.

Earnings decline at Cigna

PHILADELPHIA, Aug. 2 (UPI) -- Health insurer Cigna Corp. said its second-quarter operating income, excluding non-recurring items fell to $214 million, or $1.50 a share, from the $252 million, or $1.66 a share during the same period last year.

Operating income, which excludes after-tax realized investment results, rose to $279 million, or $1.95 a share, from $1.73 a share a year ago. Analysts on Wall Street had expected the company to post a net income of $1.96 a share, according to Thomson Financial/First Call.

Total revenue rose 6.6 percent to $4.97 billion.

H. Edward Hanway, chairman and chief executive officer, said, "Our results were consistent with expectations, but below our potential.

"We are not satisfied with aggregate earnings levels and we are focused on actions to accelerate future earnings growth, while assuring that our customers receive the very best in employee benefits products and services," Hanway added.

Looking ahead, the insurer said its expects earnings $7.85 to $8.15 a share for the year.

Analysts on Wall Street are expecting the company to post a net income of $8.05 a share, according to Thomson Financial/First Call.