Asia-Pacific stocks plummet

Asia-Pacific stocks plummet

HONG KONG (AFP): Asia-Pacific stocks plummeted yesterday at the end of a torrid first week of trading in the new year with no let-up in a crisis of confidence plaguing regional financial markets.

Manila led the decliners with a loss of 8.3 percent, followed by Singapore with 7.4 percent, but the sense of gloom was palpable all over the region as investors cashed out.

Hong Kong dived 3.9 percent, Kuala Lumpur 3.0 percent, Sydney 1.8 percent, Bangkok 2.9 percent, Jakarta 1.2 percent, and Seoul 2.4 percent, Shanghai 3.8 percent and Auckland 1.7 percent. Tokyo dipped 0.2 percent and Taipei 0.5 percent.

The plunges came despite a recovery in regional currencies led by the Indonesian rupiah which pulled back from the brink of the abyss on hopes of greater U.S. involvement in efforts to ease its economic pain.

In Hong Kong, share prices plunged below the psychological 9,000 level amid persistent fears over higher interest rates, dealers said.

The key Hang Seng Index lost 359.89 points to close at 8,894.64 -- its lowest since August 18, 1995, when the index stood at 8,895.82, in six consecutive session of losses since the start of trading in the new year.

In Tokyo, Japanese share prices closed 0.2 percent lower, failing to recoup earlier losses triggered by trembling Asian stock markets, brokers said.

Falling Asian stocks drove the key Nikkei index down by nearly two percent at one time, but the impact here was cushioned by expectations the government may implement perpetual income tax cuts, brokers said.

The Nikkei stock average of 225 selected issues on the Tokyo Stock Exchange closed down 24.08 points to end at 14,955.10, while the Topix index of all-first section issues fell 14.01 point to 1,149.19.

In Singapore, the benchmark index plunged 7.4 percent despite reduced pressure on Asian currencies amid signs of intensified US help in easing the turmoil in Indonesia and other parts of the region.

The blue-chip Straits Times Industrials index fell 94.35 points to close at 1,176.35. The more broadly-based All-Singapore Index closed 19.15 points lower at 351.01.

In Kuala Lumpur, Malaysian share prices closed three percent lower in line with falls in regional markets as news of an unexpectedly large trade surplus in November failed to lift sentiment, dealers said.

After sinking below the 500-point barrier, the Kuala Lumpur Stock Exchange composite index hit a low of 484.12 points before recovering to 491.60 at the close of trading, down 15.56 points from Thursday's finish.

In Sydney, Australian shares slumped almost 1.8 percent in harmony with Asian markets as falls across international markets impacted on local investor confidence, brokers said here.

The Australian Stock Exchange's key All Ordinaries index fell 47.6 points or 1.8 per cent to 2,603.1, having earlier dipped as low as 2585.8.

In Bangkok, Thai shares sagged 2.9 percent to close at a new 10-year low on a sell-off sparked by fears of a recapitalization of the shattered banking sector, dealers said.

The Stock Exchange of Thailand composite index ended the day 10.50 points lower at 349.67 points as jitters grew of a watering down of banks' share prices. The SET 50 index finished down 0.92 points at 24.79.

In Manila, Philippine share prices plunged 8.3 percent amid continued fears over the Asian currency crisis and government- mandated wage rises.

The Philippine Stock Exchange composite index fell 137.85 points to 1,518. 00 points.

In Seoul, share prices closed 2.4 percent down but off their lows on the Korea Stock Exchange on profit-taking and slowed foreign interest amid the downturn in regional markets, dealers said.

The composite index closed down 9.96 points at 414.00, off a low of 408.31.

In Taipei, the Taiwan stock market dipped O.5 percent as market sentiment was dampened by weakness in Hong Kong and other Asian stock markets, dealers said.

The Taiwan Stock Exchange weighted price index dropped 40.96 points to 7, 737.20.

In Shanghai, the Shanghai Stock Exchange's B share index lost 1.78 points to close at 44.97 points while the A share index of locally-traded stocks ended up 3.80 points, or 0.3 percent, to 1,312.99 points.

In Auckland, New Zealand share prices closed down 1.7 percent Friday amid worries over the meltdown in Asian markets.

The NZSE-40 index fell 38.6 points to 2,269.31 on a turnover of NZ$78.68 million (US$44.4 million).