Tech stocks take toll

GLOBAL MARKETS

Asian stocks fell, dragging a regional benchmark from a record, as a slide in technology shares countered gains in energy-related companies.

Samsung Electronics, which ended last week at a 15-month high, plunged the most in three years after memory-chip prices fell. Hon Hai Precision Industry, the world's largest contract electronics manufacturer, slid the most in four months after a newspaper said it may buy a stake in LG.Philips LCD.

"Tech stocks are pulling back because people are taking profit on the recent jumps, not because there's a problem with their fundamentals,'' said Jeon Jeong Woo, who manages $540 million at Daehan Investment Trust Management in Seoul.

PTT, Thailand's largest energy company, and Keppel, the world's No 1 builder of oil rigs, rose as crude prices traded near an 11-month high.

Benchmarks in South Korea and Taiwan, the markets with the highest technology weightings in Asia, both fell for the first time in three days. India was the only regional market to advance, while Japan was shut for a holiday.

Europe

European stocks rose for a third day, led by ABN Amro Holding after Royal Bank of Scotland Group sweetened its 71.1 billion-euro ($98.1 billion) offer for the Dutch lender, seeking to trump Barclays.

ABN Amro jumped the most in three months. Barclays also climbed. BT Group, the UK's largest phone company, and drugmaker GlaxoSmithKline rose after brokerages lifted their recommendations on the shares.

Europe's Dow Jones Stoxx 600 Index gained 0.2 per cent to 399.92 in London, with 10 of 18 industry groups advancing. Speculation of increased mergers and acquisitions sent the measure to a third straight weekly gain on July 13 and to within 7 points of a record set in March 2000.

US

US stock-index futures rose before five members of the Standard & Poor's 500 Index including Charles Schwab, the biggest discount brokerage, and toymaker Mattel report earnings.

Motorola gained in Europe after Deutsche Bank recommended buying shares of the world's No 2 maker of mobile phones. Ford Motor also climbed. Newspapers including the Sunday Times reported that the second-biggest US automaker may sell its profitable Volvo Car business.

General Electric's $14 billion share buyback plan helped catapult US stock indexes to records July 13.