Asian markets await Greenspan's testimony
Asian markets await Greenspan's testimony
SINGAPORE (Agencies): Asian assets lacked direction on Monday as investors were fretting over a prognosis of the U.S. economy by Federal Reserve Chairman Alan Greenspan in testimony scheduled on Tuesday.
Analysts and fund managers said the market was focusing on the extent of the slowdown in the U.S and how far it would go.
Japan's financial markets were closed on Monday, but other markets in Asia drew little support from a cut in its discount rate -- its first in six years -- and other measures to improve liquidity on Friday.
The regional markets seemed to ignore the move and I don't think Japanese stocks will open with a bang on Tuesday.
"Regarding non-Japan Asia, our equity strategists are positive on the region on the 12-month basis, because they believe that markets are significantly undervalued," said Goldman Sachs in its latest quarterly report.
Goldman said its strategists were more bullish about emerging markets now than they were in November 2000. And within emerging market, they recommended an overweight in non-Japan Asia and underweight in Latin America.
Australian shares closed 0.5 percent higher on investor interest in News Corp and select blue chips.
The All Ordinaries index closed 15.8 points higher at 3,277.1 while the SP/ASX 200 index added 17.9 points to 3,330.3.
Share prices in Singapore closed 0.9 percent higher in generally lackluster trading after gains in key banking stocks on merger and acquisition rehammers.
The Straits Times Index rose 16.81 points to 1,990.18.
Malaysian shares closed barely higher in dull trade with an absence of fresh leads.
The Kuala Lumpur Stock Exchange composite index rose 0.77 points to finish at 725.58.
Philippine share prices closed 0.9 percent higher with sentiment lifted by the central bank's latest interest rate cuts.
The Philippine Stock Exchange composite index added 16.47 points to close at 1,712.06.
Indonesian share prices closed down 0.8 percent amid ongoing concerns over political developments but a late rebound limited losses.
The Jakarta Stock Exchange composite index closed down 3.449 points at 424.465.
They said investors remained concerned over the political standoff between President Abdurrahman Wahid and a majority of legislators from the lower house of the parliament.
A dealer with Vickers Balas Tamara said ongoing uncertainty over the political situation "continued to put pressure on stock prices."
The Shanghai Stock Exchange's B-share index, which tracks shares nominally reserved for foreigners, inched down 0.64 points to 78.59 on a thin turnover of 119.2 million yuan ($14.4 million).
The A-share index edged up 4.74 points or 0.2 percent to 2,075.56 on turnover of 6.68 billion yuan.
South Korea's stocks eked out gains as foreign and retail investors selectively bought financial stocks on expectations they would benefit from fresh liquidity following Bank of Korea's 25-basis point interest rate cut last week.
Taiwan's stocks also made marginal gains on foreign funds buying and hopes local computer motherboard makers may win big foreign orders.
Hong Kong's Hang Seng Index closed down 180.17 points or 1.14 percent at 15,693.11, dragged lower by telecom heavyweights China Mobile and Hutchison Whampoa.
Thai stocks consolidated as investors cashed in on recent gains ahead of a new cabinet and its policy statement.
The Composite SET index lost 5.86 points or 1.8 percent at 318.86 due to profit taking in banks, finance and electronics shares.