Asian investors seek safety in Australia

Asian investors seek safety in Australia

SYDNEY (AFP): Nervous Asian investors moved to the relative safety of the Australian stock market yesterday, brokers said, pushing the local bourse higher amid turmoil in regional economies.

"Asian investors are coming into our market, treating it as a safe haven from the volatile Asian markets," Henderson Charlton Jones broker Michael Baker said.

"(The pick-up) is sort of across the board ... the building sector (is up) on economic data out this week showing the economy is on the move."

The Australian Stock Exchange's benchmark all ordinaries index gained 33 points, or 1.3 percent, to 2,626.0 over the week.

Southeast Asia's troubled currencies picked up yesterday from their record lows of the previous session, but analysts warned they were not yet in the clear.

The Malaysian ringgit strengthened in response to Kuala Lumpur's decision to remove part of the stock trading controls that had frightened away foreign investors.

The Indonesian rupiah, which plunged to an all-time low yesterday, also recovered some ground, as did the Philippine peso.

However, other analysts said visions of floods of capital coming to Australian shores was more "kite-flying" than reality.

"Certainly we are seen as a safe haven. Politically we are stable and our currency is more stable than most," said Banque Nationale de Paris equities director John Bowie Wilson.

"But the strength on our market today came from locally- inspired value-hunting. There is no real evidence of significant buying (from Asia)."

Bowie Wilson said Asian investors were more likely to have their eye on lucrative opportunities closer to home.

"In times of turmoil, people focus on their own economies ... where they could be finding some local bargains."

"In those volatile markets, there is huge money to be made for those who are fleet-footed."