Asian stocks cautious, Tokyo withstands tankan<\/p>\n
Jennifer Chen, Agencies, Singapore<\/p>\n
Japanese shares surged two percent on Monday shrugging off yet
\nanother gloomy indicator from the world's second largest economy,
\nas investors elsewhere braced for an expected U.S. military
\nstrike against Afghanistan.<\/p>\n
Markets in Greater China and South Korea were closed for their
\nannual harvest festivals, giving Asian investors pause to ponder
\nwhat implications a U.S. military strike might have on the
\nvolatile Middle East and its rippling effect on oil prices.<\/p>\n
Tokyo's blue-chip Nikkei index climbed 2.02 percent to
\n9,972.28, despite a rash of profit warnings in the high-tech
\nsector and a gloomy business sentiment survey.<\/p>\n
The yen held its ground despite the Bank of Japan's September
\n\"tankan\" survey, which showed the headline diffusion index
\nstumbling to minus 33 from minus 16 in June.<\/p>\n
But the Japanese currency was later felled by threats of
\nintervention from Ministry of Finance officials, eager to show
\nthe seriousness of their intent to drive the yen lower after last
\nweek's limited success at knocking it down.<\/p>\n
A stronger yen means less export competitiveness, which Japan
\ncan ill-afford now.<\/p>\n
Shares in Manila, Jakarta, and Bangkok lost ground as
\ninvestors fretted over the possibility of U.S. military action.<\/p>\n
In Jakarta, investors worried that Muslim radicals may
\nretaliate against foreigners if the U.S. attacks Afghanistan.<\/p>\n
The JSX Composite index ended down 1 percent, or 3.804 points,
\nat 388.675. Decliners led gainers 85 to 27 with 66 stocks
\nunchanged.<\/p>\n
Volume was light at 244 million shares valued at 207 billion
\nrupiah (US$20.9 million).<\/p>\n
Dealers said the weaker rupiah is also hurting sentiment
\ntowards the bourse, with some currency traders now tipping the
\nrupiah will slip to 10,000 against the U.S. dollar this week.<\/p>\n
Singapore stocks bucked the downtrend in Southeast Asia thanks
\nto gains in heavyweights Singapore Press Holding, Singapore
\nAirlines and DBS Group.<\/p>\n
Though the region was quiet, this week was shaping up to be a
\nbusy one in the United States, with the National Association of
\nPurchasing Management issuing its September index on Monday and
\nthe Labor Department releasing its September jobs data on Friday.<\/p>\n
The week's main event is the Federal Open Market Committee
\nmeeting on Tuesday, which the market expects will produce another
\nrate cut to help the badly shaken U.S. economy.<\/p>",
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