Soeharto's statement boosts Asian markets<\/p>\n
HONG KONG (AP): From Jakarta to Tokyo, Asia's battered markets
\ngenerally rose yesterday after Indonesian President Soeharto
\nannounced that he would institute reforms, call new elections and
\nultimately step down.<\/p>\n
Nowhere was the reaction as strong as in beleaguered
\nIndonesia. Although trading volume was low, the JSX Composite
\nIndex surged 24.90 points, or 6.4 percent, to 413.82 on
\nSoeharto's announcement.<\/p>\n
The Indonesian currency surged to 11,000 level against the
\nU.S. dollar, almost unchanged from its close Monday, after
\nrecording a low of 16,000 against the dollar.<\/p>\n
Currencies and stocks across the region fell sharply early
\nyesterday as markets anticipated more trouble in the island
\nnation. Panicky selling gripped the market in Jakarta, and
\nIndonesia's woes dragged down many regional markets.<\/p>\n
Soeharto told the nation yesterday that he would institute
\nreforms and organize new elections, and that after those
\nelections, he would not be a candidate to continue his 32 years
\nin power. He did not give a timetable.<\/p>\n
But traders said the announcement was enough to give hope that
\nIndonesia could avoid a continuation of the violence that claimed
\n500 lives last week.<\/p>\n
In Tokyo, the market found the news from Indonesia one of the
\nfew positives helping to counteract uncertainty over the Japanese
\neconomy and Asia's prospects.<\/p>\n
The benchmark 225-issue Nikkei Stock Average climbed 167.18
\npoints, or 1.08 percent, closing at 15,551.65 - the highest
\nfinish in more than two weeks. On Monday, the average had gained
\n141.61 points, or 0.93 percent.<\/p>\n
Meanwhile, the U.S. dollar rose against the yen as demand for
\nthe American currency was spurred by lingering fears of further
\ninstability in Indonesia.<\/p>\n
The dollar was quoted at 135.92 yen in late afternoon, up 0.62
\nyen from late Monday in Tokyo but below its late New York rate of
\n136.25 yen overnight.<\/p>\n
In Seoul, the currency rose in response to the news.<\/p>\n
On the Seoul Stock Exchange, the key Korea Composite Stock
\nPrice Index rose 3.53 points, or 0.9 percent, to 362.53.<\/p>\n
In Bangkok, Thai share prices tumbled because of a sell-off in
\nthe banking sector as the central bank's takeover of seven
\nfinance companies raised fears that its crackdown on the industry
\nis far from over.<\/p>\n
The Stock Exchange of Thailand index plunged 10.75 points, or
\n3.0 percent, to 346.46.<\/p>\n
In Manila, Philippine shares also closed sharply lower as
\ninvestors unloaded their holdings.<\/p>\n
The Philippine Stock Exchange Index of 30 selected issues fell
\n56.50 points, or 2.7 percent, to 2,068.91.<\/p>\n
In Singapore, share prices also fell as a rally following
\nSoeharto's speech failed to last. The benchmark Straits Times
\nIndustrial Index fell 13.12 points, or 1 percent, to 1,278.62.<\/p>\n
In Hong Kong, share prices rebounded after Soeharto announced
\nthat he would step down following new elections in his country.<\/p>\n
The Hang Seng Index rose 37.14 points, or 0.3 percent, closing
\nat 9,449.11.<\/p>\n
In Taipei, share prices closed slightly higher. The market's
\nkey Weighted Price Index edged up 1.38 points, or 0.02 percent,
\nto 8,136.27.<\/p>\n
In Wellington, New Zealand share prices closed lower. The
\nNZSE-40 Capital Index fell 7.60, or 0.3 percent, to 2,212.82.<\/p>\n
In Sydney, the Australian share market closed moderately
\nhigher, getting a boost in late trading when Soeharto said he
\nwon't stand at the country's next election. The key All
\nOrdinaries Index rose 8.73 points, or 0.3 percent, to 2,742.0.<\/p>\n
In Kuala Lumpur, the benchmark index rose after Soeharto's
\nspeech. The Composite Index rose 4.43 points, or 0.81 percent, to
\n554.42.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/soehartos-statement-boosts-asian-markets-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}