Asian stock markets seen unstable<\/p>\n
SINGAPORE (Reuter): Asian stock markets are expected to remain
\nvolatile in the week ahead in the face of continued uncertainty
\non Wall Street and in Asian currency markets, traders and
\nanalysts said.<\/p>\n
Regional bourses were seen as unlikely to gain ground in the
\nabsence of any clear signals from the U.S.'s Dow Jones index,
\nwhich suffered a steep 177-point drop on Friday before bouncing
\nback to close just 6.04 points down at 7887.91.<\/p>\n
There were also few signs that the Asian currency volatility
\nwould abate anytime soon as the Thai baht, Indonesian rupiah,
\nMalaysian ringgit and Singapore dollar all fell on Friday.<\/p>\n
Asian currencies have been under pressure since speculation
\nforced the de facto devaluation of the baht on July 2, triggering
\na domino effect in the Philippines and Indonesia and hurting
\nother regional currencies.<\/p>\n
Tokyo stocks are set to lose more ground in the coming week as
\npessimism over Japan's economy is expected to spur investors to
\ncash in their shares well before closing their books for the
\nfiscal half-year to Sept. 30.<\/p>\n
On Friday, the benchmark Nikkei 225 average closed at
\n18,650.17, down 675.86 points from the previous week's close.<\/p>\n
\"Since it is difficult to conjure up a bright outlook for the
\nmarket, investors are being driven to lock in profits as early as
\npossible,\" said Tadahiro Kamogawa, senior analyst at Yamaichi
\nSecurities Co Ltd.<\/p>\n
Brokers said the benchmark Nikkei 225 index could retreat
\nfurther towards 18,500 or 18,000 next week, after Friday's easy
\nslide through 18,801.68, a low reached on Aug. 13 that was
\nconsidered a key support level.<\/p>\n
The market is also likely to keep an eye on Wall Street.<\/p>\n
Hong Kong stocks are set for another volatile week with
\nconcerns about higher interest rates and regional currency and
\nstock market weakness likely to keep investors on edge.<\/p>\n
The blue chip Hang Seng Index lost 667.13 points, or 4.14
\npercent, during the week to close at 15,429.75 points on Friday.<\/p>\n
Analysts said the index may rebound to about 16,000 points if
\nproperty developers show interest at Wednesday's government land
\nauction, the first since Hong Kong returned to Chinese rule on
\nJuly 1.<\/p>\n
\"I think it is going to stay quite volatile,\" said Richard
\nVerin, head of equities trading at Credit Suisse First Boston.<\/p>\n
Philippine shares are likely to remain feeble in the week
\nahead amid the turmoil in Asian currencies, brokers said.<\/p>\n
\"Everything is still tied to the currency,\" Edgar Bancod,
\nsenior investment analyst at Paribas Asia Equity, said.<\/p>\n
The release in the coming week of first-half GNP and GDP
\nfigures, expected to be slightly weaker, will further dampen
\nmarket sentiment. The composite index fell 20.20 points week-on-
\nweek to close at 2,428.73 on Friday.<\/p>\n
Thai stocks ended a bruising week 63.66 points, or 10.2
\npercent, lower as the country continued to suffer from the
\nregional currency turmoil and the depletion of its own foreign
\nreserves.<\/p>\n
Brokers said they could not see any quick recovery signs after
\nthe baht took another heavy beating on Friday, tumbling about 4.7
\npercent, touching a record low of 33.30 to the dollar before
\nrecovering a bit.<\/p>\n
The SET Index posted its seventh consecutive daily loss on
\nFriday to finish the week at its lowest point since end-June. It
\nclosed at 559.59, down from 623.25 a week earlier.<\/p>\n
Kuala Lumpur shares are expected to wait for direction from
\nTuesday's release of earnings by bellwether stock Malayan Banking
\nBhd, which comprises eight percent of the market's value.<\/p>\n
On Friday, the Composite Index of 100 key stocks closed down
\n4.24 points or 0.47 percent to 905.00, a loss of 5.18 points for
\nthe last week.<\/p>\n
\"I think until Maybank results are out, it will be a quiet
\nmarket,\" said Phua Lee Kerk, head of research at Jupiter
\nSecurities.<\/p>\n
Dealers said the Composite Index is seen supported at 880,
\nwith topside at 920 to 950.<\/p>\n
Taiwan's stock market is expected to consolidate in the coming
\nweek amid political uncertainties surrounding next week's ruling
\nparty congress and cabinet reshuffle, brokers said.<\/p>\n
On Saturday, the index ended down 55.13 points or 0.55 percent
\nat 9,965.42, still higher than last Saturday's 9,706.57.
\nA 9.980-10,100 range was seen for next week.<\/p>\n
South Korean stocks are expected to rise steadily in the week
\nahead as the government is scheduled to announce measures to ease
\nstrains in the financial markets, brokers said.<\/p>\n
Expectations that the foreign shareholding limit would be
\nexpanded soon would help buoy sentiment, they said.<\/p>\n
The composite stock index ended at 742.58 on Saturday, down
\n5.83 points or 0.78 percent from 748.41 last Saturday.<\/p>\n
Singapore shares will be vulnerable to developments on Wall
\nStreet and in regional currencies, dealers said.<\/p>\n
\"The Singapore market lacks positive news and should take its
\ncue from Wall Street for now,\" said a dealer with a European
\ninstitution.<\/p>\n
On Friday, the Straits Times Industrials Index ended down 1.13
\npoints at 1,945.44 compared to 1,953.80 the previous week. Key
\nsupport for the index was pegged at 1,870, dealers said.<\/p>\n
Australian shares are expected to stay volatile near-term in
\nthe face of the choppy behavior in U.S. markets, with the
\nearnings reporting season remaining the major local influence.<\/p>\n
The All Ordinaries index closed at 2,620.3, down 1.1 percent
\non the day and down 1.7 percent on the week.<\/p>\n
New Zealand market would post further losses despite an
\nunderlying willingness to firm if the Dow continues to fall and
\nrates keep rising<\/p>\n
The New Zealand stock market shed 19 points on Friday, falling
\nto 2,497.77 in response to the Dow's 127-point Thursday drop.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-stock-markets-seen-unstable-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}