Asian stocks poised for another poor week<\/p>\n
HONG KONG (Reuter): Asian stocks are mainly poised for another
\npoor week, with Hong Kong depending on Wall Street for direction
\nand sentiment weak in the rest of the region.<\/p>\n
"Traders in Hong Kong are driving these markets," one head
\ntrader said. "There's no theme out there...the rallies we saw in
\nJakarta and Kuala Lumpur have definitely run out of steam and I
\nwould suspect we'll test lows there again."<\/p>\n
U.S. blue chips powered ahead on Friday as inflation fears
\nebbed on benign reports of August retail sales and producer
\nprices. The Dow Jones Industrial Average rose 1.07 percent, or
\n81.99 points, to 7,742.97.<\/p>\n
The Hang Seng index of blue chip stocks is expected to
\nconsolidate with attention focused on the Communist Party
\nCongress in Beijing, while Tokyo shares seem headed for further
\ndeclines.<\/p>\n
Sentiment towards Asia remains poor however, following weeks
\nof financial market turmoil prompted by currency devaluations in
\nThailand, the Philippines, Indonesia and Malaysia.<\/p>\n
In Tokyo, Japanese stocks are expected to extend losses amid
\npessimism over prospects for economic recovery, but steady
\nbargain-hunting by public funds may help limit further losses,
\nanalysts say.<\/p>\n
The benchmark Nikkei 225 average sank below the widely watched
\n18,000 level on Friday, ending at its lowest level in nearly five
\nmonths.<\/p>\n
Some analysts said the Nikkei could dip towards 17,000, but
\nothers said consistent bargain-hunting by public funds in Japan
\nmay help cushion a fall.<\/p>\n
In Hong Kong, regional currency and stock market instability
\nis expected to keep investors on the sidelines and Hong Kong
\nstocks are likely to consolidate, although China plays could move
\nahead if China's Communist Party Congress yields encouraging
\nresults.<\/p>\n
The Hang Seng Index slipped 93.09 points, or 0.64 percent, in
\nthe past week, having gained 162.16 points, or 1.13 percent, on
\nFriday to close at 14,470.46 points.<\/p>\n
In Taipei, Taiwan's stock market was expected to remain soft,
\nafter the index ended down 61.40 points at 9,093.84 on Saturday,
\nfor a 3.1 percent drop over the week.<\/p>\n
Brokers saw a range of 8,800-9,300 in the coming week for the
\nindex, which has lost more than 10 percent from a seven-year high
\non Aug. 26.<\/p>\n
In Seoul, the market's direction after the Sept. 15-17 autumn
\nharvest holiday was uncertain brokers said, but some believed
\nprospects of an announcement raising the foreign ownership limit
\non shares could trigger a rise.<\/p>\n
Stocks closed mixed on Saturday with core blue chips leading
\ngainers, while smaller capitalized issues fell on margin loan
\ncalls. The composite index ended at 699.74, up 0.41 points from
\nFriday. The market reopens Thursday.<\/p>\n
In Singapore, foreign fund buying was expected to underpin the
\nSingapore stock market, dealers said.<\/p>\n
On Friday, Rothschild Asset Management (Singapore) named
\nSingapore as its most favored Asian investment prospect.
\nDealers said electronic counters are recommended on optimism of a
\nrecovery in the sector, dealers said.<\/p>\n
The Straits Times Industrial Index ended 8.27 points up at
\n1,935.95 on Friday, compared with 1,884.06 a week earlier.<\/p>\n
In Bangkok, Thai stocks are set for another bumpy week with
\nexpectations of higher interest rates at some banks set to
\naggravate tight liquidity, and political uncertainties adding
\npressure, brokers said. Four major banks raised lending rates in
\nthe past week.<\/p>\n
The Stock Exchange of Thailand (SET) index fell 1.1 percent in
\nthe past week to 534.18 points.<\/p>\n
Brokers said a no-confidence motion against Prime Minister
\nChavalit Yongchaiyudh, expected on September 24-25, and a final
\nvote on a new constitution to be held on September 27 would keep
\ninvestors sidelined.<\/p>\n
In Kuala Lumpur, Malaysian shares are expected to trade in a
\nrange in the coming week, brokers said.<\/p>\n
The Kuala Lumpur Stock Exchange (KLSE) benchmark Composite
\nIndex ended 2.15 percent, or 17.91 points, higher on Friday at
\n852.08 -- 3.7 percent higher than a week earlier.<\/p>\n
Brokers see immediate support at 800 and resistance at 855.<\/p>\n
In Manila, volatile trade is expected in the Philippines with
\npolitical concerns dictating the tempo, brokers said.<\/p>\n
"Politics, that's the trump card these days," said Saturnino
\nMejia, research head at Guoco Securities.<\/p>\n
President Fidel Ramos is limited by the constitution to a
\nsingle six-year term, but Ramos supporters have been pushing for
\na change in the charter to allow him to run for a second term.<\/p>\n
On Friday, the main index closed 3.61 points lower at 2,141.68
\nbut over the week it gained 32.46 points, or 1.53 percent.<\/p>\n
In Sydney, Australian shares are expected to show downward
\nbias near term as the market contemplates a plethora of mainly
\nbearish influences from offshore.<\/p>\n
The All Ordinaries index closed on Friday at 2,640.0, down one
\npercent on the day but up half a percent on the week.<\/p>",
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