Asia-Pacific stocks suffer as currency markets crumble
Asia-Pacific stocks suffer as currency markets crumble
HONG KONG (AFP): Stock markets across Asia-Pacific bore the
brunt of the worsening currency crisis which saw new record lows
for the Malaysian ringgit, Indonesian rupiah and the Philippine
peso.
Malaysia, Singapore and Jakarta saw their stocks suffer as
their currencies fell. Kuala Lumpur's stocks ended 2.3 percent
down, with investors reacting to more suggestions from Prime
Minister Mahathir Mohamad that foreign exchange trading should be
regulated.
"There is no support coming in for the market. Players are
jittery as they do not know where the ringgit is heading," said
Victor Wan, an analyst with South Johor Securities said in Kuala
Lumpur.
Singapore's blue-chip stocks ended 0.7 percent lower, as even
the robust Singapore dollar was hit by speculation.
"The market opened steady, but in light of this currency
turmoil everybody chose to go to the sidelines and the momentum
dissipated," said Chandra Mahawar, a dealer with Deutsche Morgan
Grenfell, in Singapore.
In Tokyo, the Nikkei stock average of 225 selected issues on
the Tokyo Stock Exchange fell 45.55 points, or 0.3 percent, to
finish at 17,842.16, while the broader Topix index of all first
section issues dipped 0.13 points to 1,388.45.
In Hong Kong, financial markets were closed for a national
holiday.
In Singapore, blue-chip stocks ended 0.7 percent lower as
sentiment was dampened by a sharp depreciation of neighboring
Malaysia's currency and shares, dealers said.
The blue-chip benchmark Straits Times Industrials index fell
12.94 points to 1941.74, while the broader All-Singapore index
fell 7.72 points to 471.43.
In Sydney, the main indicator, the all ordinaries index, rose
12.3 points to 2,779.2.
In Kuala Lumpur, Malaysian stocks took a beating as the local
currency crashed to new lows following fresh suggestions from
Prime Minister Mahathir Mohamad to regulate foreign exchange
trading.
The Kuala Lumpur Stock Exchange's 100-share weighted composite
index fell through the 800-point psychological level to close
18.74 points or 2.3 percent lower at 795.83.
In Bangkok, Thai share prices rose 0.6 percent on speculation
in banking shares following reports that major banks would not
suffer as previously expected under upcoming financial reforms,
analysts said.
The composite Stock Exchange of Thailand (SET) index was up
3.26 points at 547.80, while the selected SET 50 index gained
0.37 points to finish at 41.43 points.
In Jakarta, share prices fell 1.8 percent on the back of
weakness in the rupiah and regional currencies, and amid concerns
about inflation, dealers said.
The composite index closed down 9.710 points at 536.986.
In Manila, the Philippine share prices rose 0.5 percent due to
short-term buying despite the fall in the peso.
The Philippine Stock Exchange composite index rose 10.23
points to close at 2,067.62.
In Seoul, the composite index closed down 2.19 points at
644.92.
In Shanghai, financial markets were closed for a national
holiday.
In Taipei, the Taiwan Stock Exchange weighted price index slid
13.81 points to 8,695. 02.
In Auckland, the NZSE-40 was up 18.01 points to 2575.09 on
turnover of NZ$61.7 million (US$39.6 million).
In London, the FT-SE 100 index of leading shares rose by 15.3
points to 5,259.5 points.
In Paris, the CAC-40 index opened 9.14 points lower at 2,99.12
in the wake of overnight losses on Wall Street.
In Frankfurt, the DAX-30 index fell by 11. 88 points to
4,155.97 points