The MSCI Emerging Markets Information Technology Index plunged 3.8%, the biggest slide since May and the steepest retreat among 10 industry groups.
South Korea's Hynix Semiconductor Inc., the world's second- largest computer-memory chipmaker, slid 4.7%. In addition to a possible drop in demand from Japanese electronics makers, supplies of semiconductor components may be disrupted after the earthquake, Mirae Asset Securities said.
Japanese companies including Toshiba Corp., Sony Corp., Panasonic Corp. and Elpida Memory Inc. supply 20% of the world's technology products, including 44% of audio- visual equipment, 40% of electronic components and 19% of semiconductors, CLSA Asia-Pacific Markets estimates. Plant closures since Tokyo Electric requested companies to cut electricity consumption to ease shortages including two at Toshiba and eight each at Sony and Canon Inc.
Credit-default swaps on Bahrain jumped 21 basis points to 335, the highest since July 2009, according to CMA. The Bloomberg GCC 200 Index of Persian Gulf shares sank 2.5%. Saudi Arabian troops arrived in Bahrain yesterday as part of a regional force from the six-member Gulf Cooperation Council, the first outside intervention since a wave of popular uprisings swept through parts of the Arab world.
Bahrain declared a state of emergency for three months and King Hamad bin Isa Al Khalifa asked the head of the military to guarantee security across the country, state television said. A Saudi soldier was shot dead by protesters, The Associated Press reported today, citing an unidentified security official.